Amazon Set To Launch Same-Day Delivery Grocery Service In New York

Amazon is doing a lot of good things with its' same-day delivery grocery service AmazonFresh. It is a service many experts didn't expect to go this far, yet Amazon is proving the naysayers wrong. The service is having success in various cities, as Amazon has established the service on the west coast. Now the retail giant is making leaps to expand the new service to one of the biggest cities in the US--New York.

Internet Retailer reported Amazon has announced it will be launching AmazonFresh in the New York. This will be the first actual launching of the service on the eastern coast of the US. The retail giant has already started Amazon Fresh in San Francisco, Seattle, and Los Angeles. AmazonFresh customers pay a $299 annual fee for free delivery of orders of more than $35, which includes delivery of the items Amazon is more known for selling—such as books, movies, toys and electronics. Currently, Amazon charges $10 per for all orders under $100 bucks, and if it is over $100, there is no charge for delivery.

There is some concern on whether the branding of Amazon will be received by customers to actually buy groceries from the online retailer. “To me the competitive advantage is the brand,” stated Tom Forte, a senior analyst with Telsey Advisory Group LP. “It’s having customers who are familiar with Amazon, who have been ordering with Amazon for an extended period of time, that can deliver them groceries and other items from Amazon in a timely manner.” Amazon is widely known for offering a variety of products, yet will the company be able to market Amazon Fresh just right to create the same level of trust by customers relative to groceries.

Amazon will also have its' fair share of competition on the east coast. Two of the big name online retailers that are already performing same-day delivery of groceries there is Peapod and Fresh Direct. Peapod is the leading grocery service provider, which reached $525 million in online sales in 2012. The company is already services Chicago, New York, Philadelphia, Boston, Milwaukee, Washington DC, and Indianapolis. Fresh Direct had $400 million in sales the same year, yet only services New York and Philadelphia.

Forte also stated in the report his thoughts on why Amazon is in the grocery delivery business in the first place. “AmazonFresh is another same-day-shipping-type move by Amazon that’s all about getting people to buy products on Amazon and not somewhere else. The reason that Amazon is interested in grocery is because the frequency of delivery. Amazon wants to have multiple touch points with the consumer and this is another move in that direction.” This will also add to the volume of service and increase profit per delivery, especially because the delivery price is has to remain at low cost for shoppers to buy into it.

Time will tell whether Amazon's same-day delivery of groceries in New York will be well-received by customers there. Either way, Amazon will still need an effective delivery solution to make sure the groceries arrive at the customer's front door on time. Same-Day Couriers like A-1 Express can partner e-retailers like Amazon and perform same-day grocery delivery nationwide. The New York Courier has the courier expertise and innovation to quickly implement same-day delivery to help Amazon continue to gain ground in the grocery retail market.

Reference: 12.13.13, Internet Retailer, Stefany Moore, Can Amazon sell groceries in the Big Apple?