Amazon Prime Pantry - Non-perishable Grocery Delivery

One more post for the week and it is interesting news for all of you Amazon followers.

Amazon.com has launched an extension to their Amazon Prime offering:

http://www.internetretailer.com/2014/04/24/amazon-opens-its-pantry-doors-ordering-bulky-items

Here is a snippet from that piece:

Amazon.com Inc. launched Prime Pantry, a grocery-shopping digital storefront that allows Prime customers to virtually fill a 4-cubic-foot box with up to 45 pounds of items from the e-retailer’s new pantry section. That box is then delivered—as empty or full as the customer desires—for a $5.99 shipping fee, plus the cost of the items in the box.

Quickly lets do the math for this.

First the customer must be an Amazon Prime member at $99 per year.  Next the customer must pay $5.99 for shipping for this.  Finally, the set 4-cubic-foot box size drives cart filling.  So Amazon Prime customers that want bulk items that have significant weight, such as sodas or diapers, can now regularly fill their needs through this service.

The Food Marketing Institute (FMI) has released a study for subscribers that indicates ambient items such as packaged goods and non-food items that shoppers are currently stocking up on during regular, large, visits to supermarkets are the most likely to move to an online source.  Amazon.com is directly targeting those revenues with this move.

Happy Reading,

J.W. Gant