Will Amazon Begin Same-Day Delivery Of Groceries?

There's no bigger online retailer than Amazon. The online giant has the lead competition for several years with innovative delivery and shipping methods, including Amazon Prime and Amazon Lockers. Its' product line has involved virtually any consumer product you could name and have it shipped quickly to you, with the exception of food on a major scale. However, from recent reports, it appears online groceries will be next on Amazon's list.

Reuters has reported Amazon will roll out an online grocery business expansion plan, which will incorporate the selling of food with high-margin item deliveries within the same order. Its' grocery business AmazonFresh is not new, but rather has been tested for at least five years in Seattle, its' hometown. Amazon has utilized its' own fleet of trucks to perform deliveries of fresh food products. With the testing of the service, Amazon appears to be ready to expand into Los Angeles this month and also San Francisco later in the year.

Experts approve of the move forward for the new online grocery business, apparently hailed to be tried and tested by Amazon. "Amazon has been testing this for years and now it's time for them to harvest what they've learned by expanding outside Seattle," said Bishop, chief architect at Brick Meets Click, a consulting firm. He continued, "The fear is that grocery is a loss leader and Amazon will make a profit on sales of other products ordered online at the same time. That's an awesomely scary prospect for the grocery business."

AmazonFresh will have the warehouse capability to accommodate the big move as well. Amazon will have new warehouses that can store one million general merchandise products, as well as refrigeration areas for food. The online company has no trouble building needed facilities to specific areas of the US to meet their online demand. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide as of 2013. This is not including an announcement to build three new distribution centers in Texas earlier this year.

The combination of food and retail products within one order is what will make the difference in making online grocery delivery successful. However, with this being food, the question still remains what effective method of delivery will be used to get these items in hands of online shoppers? It only makes sense that online groceries will require same-day delivery to make it work. Amazon will encounter online grocery chain competitors such as Wal-Mart, which is already testing same-day delivery within San Francisco and other US cities.

The key for AmazonFresh will be to deliver its' online food products cost effectively on a large scale and fast. Same-day couriers like A-1 Express will be just the right fit for the delivery demands nationwide it will require. The Los Angeles Courier has a national footprint, which will enable Amazon to have one partner for an optimal same-day delivery logistics solution. With its' courier expertise, A-1 Express will be able to provide quick implementation of food deliveries and keep up with ongoing online grocery service growth.

References: 6.4.13, Reuters.com, Alistair Barr, Amazon plans big expansion of online grocery business: sources