Give me a like if you like my amazin art skill lol :)
Amazon recently bought wholefood for 13 billion dollars. This is a brilliant move by amazon. Just look at Wall street investor's reaction, costco went down over 8% and krulger went down around 9%. Amazon doesn't need whole food to sale their product right? But Amazon can dominate a "whole"(get it? whole food) new market using whole food's connections. And here is why:
Think about your weekly grocery shopping list, most of what you are buying are food right? If Amazon can get into this business, not only it will be able to dominate a whole new market, it will also increase sales on Amazon. Imagine if you have to drive 10 minutes to Walmart just to buy a notebook or something small, that must be frustrating.
Purchase of whole food plays a major role here. What is the main obstacle of selling fresh food on Amazon? It's how to keep it fresh. There is probably a whole food in every major cities in United States. It acts as an storage to delivery, while generating sustainable revenue to essentially running whole food as a storage for free. I actually think in the future Amazon fresh will hurt wholefood. There is no way Amazon bought it just to sell food in store, that's just stupid!
Future of Amazon fresh
10 years ago, no would have imagined how great the e-commerce business is today. Not even Warren Buffet (he didn't invest in Amazon, he said it was a mistake). In the next 10 years, because think about it: clicking mouse for couple times is way more convenient than going to store. Especially for a nerdy Asian like myself. PS: if you are reading this 10 years later and I'm right, make sure to up vote this because I'm a magician!
Pros:
Convenience
Growing technology
really good for people who have really young kids (don't have to watch kids)
feels cool
More options to choose from
I HATE GROCERY SHOPPING, SO BORING and TAKES FOREVER. (even with the free food)
Cons:
currently pricing is more expensive (probably due to shipping)
quality (damage during shipping)
safety of food
allergy issue when bags are close together
Future possibilities:
Store pick ups for small Amazon products, not just food. For example small toys (think about walmart store pick up)
Order uncommon food. For example if an area has enough demand, they send supplies.
Amazon FBA, it's fullfillment by Amazon. Basically sending your own goods to amazon to sell. (safety can be a concern)