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Group 10 - Amazon Fresh

AmazonFresh is Amazon's online grocery delivery service. It launched in 2007 in Seattle as an invitation-only beta test. While no online grocer had succeeded nationally at the time, AmazonFresh aimed to capture this market. By 2017, AmazonFresh generated $2 billion in US grocery sales online, up 59% from the previous year. However, online grocery faces challenges like customer preferences for choosing produce in stores and high costs of logistics and delivery. AmazonFresh addresses this through strategies like private label suppliers, owned distribution centers, and optimized delivery routes. It offers customers convenience through wide product selection and same-day delivery.

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Hrangbung Darthang
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427 views9 pages

Group 10 - Amazon Fresh

AmazonFresh is Amazon's online grocery delivery service. It launched in 2007 in Seattle as an invitation-only beta test. While no online grocer had succeeded nationally at the time, AmazonFresh aimed to capture this market. By 2017, AmazonFresh generated $2 billion in US grocery sales online, up 59% from the previous year. However, online grocery faces challenges like customer preferences for choosing produce in stores and high costs of logistics and delivery. AmazonFresh addresses this through strategies like private label suppliers, owned distribution centers, and optimized delivery routes. It offers customers convenience through wide product selection and same-day delivery.

Uploaded by

Hrangbung Darthang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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AMAZON FRESH:

REKINDLING THE ONLINE


GROCERY MARKET
GROUP 10:

KRISHNAKANT S MAHESHWARI(PGP09197)

SHRAY YADAV(PGP09236)

SAI JAGTAP(PGP09190)

SHUBHAM SINGLA(PGP09239)

SHUBHAM DIVYANSHU(PGP09238)

HRANBUNG DARTHANG ANAL(PGP09189)

NEHA SHEENAM(PGP09211)
2 ABOUT AMAZONFRESH

• AmazonFresh launched in 2007 as an invitation-only beta test on Mercer Island


• A customer could browse over 100,000 grocery items, place selections in a
digital “basket” and have them delivered the same day or the next day
• No online grocer had yet succeeded on a national scale
• In 2012 less than 2 percent of overall U.S. grocery sales were transacted online.
• Groceries represented the largest single retail category, with 2010 revenue of
$600 billion
• Consumers shopped for groceries 2.2 times per week on average
3 AMAZONFRESH MARKET
POSITION
• Captured 1st position in online grocery retail
• Closest competitor- Walmart
• Offers next-day delivery for 3.90-5.90 euros and a minimum order value of 40 euros
• Acquired Whole Foods a year ago for $13.7 billion
• In 2017, It $2 billion in grocery products online in the US, up 59% year-over-year
(YoY)
CREATING VALUE FOR CUSTOMERS
4

Redefining costumer experience

• Delivery Efficiency: Flipkart serves on time delivery to over 19,000 Postal codes in
India.
• An App that never lets you down: Flipkart ensure that it’s app is optimized for use
in poor connectivity regions as well.
• Wide range of products and Discount Options
• Flipkart assured : It ensures that costumers do not need to pay delivery charges on
the purchases above Rs.500
• Leader in costumer communication: Breaking communication barriers through
24/7 online connectivity
• Return policy: Depending on the product, Flipkart provides exchange, replace or
refund of it’s products
5 AMAZON MARKETING CHANNEL
STRATEGY
• Contracted local retailers and suppliers of prepared food
Suppliers or
• Amazon had its own warehouse to maintain quality
local retailers control

• Purchased existing distribution center from Safeway


Distribution
• Changes made in layout to facilitate efficient assembling
Centre and packaging

• Delivered through delivery trucks, operating on routes designed


to minimize total distance travelled and maximized the uses of
trucks
Consumers • Delivers in crates or reusable totes and insulated it with
thermocol
6 CHALLENGES IN ONLINE
GROCERY RETAIL
• Online grocery retail was having a long lead time
• Customers preferred to choose their own produce rather than buying online
• Attracted toward brick and mortar stores appealing display and samples
• Online grocery industry has very small margins nearly about 1 percent due to high COGS,
labour expenses and spoilage
• Needed their own logistics infrastructure to keep food at appropriate temperatures
• Needed sufficient customer density in a given neighborhood to avoid sending out partially-
empty delivery trucks
• Customized delivery truck sat idle for most of the time
• Online grocery also lacked legitimacy and was known as Bermuda triangle of e-commerce
7 CONSUMER VALUE PROPOSITION

• Wide range product available, nearly 1,00,000


• Lower prices as compared to its competitors with higher product quality
• All totes, paper bags, or cardboard are recyclable or they can be pick up in
next fresh order
• Sleep tight service enables the customer to get doorstep delivery at night
• Shorter lead time – allowing same day or next day delivery system
• Damage or missing goods are eligible to be refunded
• Unsatisfied customers often get refund or added perks to keep them happy
8 RECOMMENDATION

• AmazonFresh must excel in the logistics and transportation category of the business in
order to generate more profit margin
• AmazonFresh must invest into maintaining the temperature and quality of groceries, like
purchasing trucks that have refrigeration and deliver goods within a certain time frame.
• It should tie-up with brick-mortar stores so that it could distribute perishable items from
there hence minimizing logistics and transportation costs which otherwise require careful
handling and refrigeration
• It should expand its current business model into Los Angeles City
• Should try to provide free delivery to customers so that they can also benefit by ordering
online more frequently thereby ensuring customer retention.
9

Thankyou

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