Brand representatives are no longer allowed to visit stores to promote products or check up on how things are stocked and displayed. They moved the decision-making process, which was previously handled at a local level, to Whole Foods main headquarters. Amazon centralized the purchasing structure and store practices for all Whole Foods locations. As Amazon has taken control over the past year and a half, the most significant change happened behind the scenes. So, how has Amazon improved the online grocery experience? How do food sellers and suppliers take advantage of this growing market?Īmazon purchased Whole Foods Market in mid-2017, which added 440 physical stores in the US, Canada, and the UK to its e-commerce assets. Once a customer is familiar with an item, they can opt for the convenience of online purchase and delivery instead of making the purchase in-person.Ī recent 2018 study by the Retail Feedback Group found that half of US online shoppers plan to purchase grocery items online more often in the coming year and rate their overall satisfaction ordering food and grocery items online highest with Amazon. Amazon is overcoming these barriers by offering a multitude of fresh, frozen, and packaged grocery products that can be tried and tested at neighborhood brick-and-mortar locations.
It's also provided Amazon’s grocery services with a significant competitive advantage and a boost in brand recognition.Ĭustomers often cite a lack of product selection, quality, and freshness as the main reasons for not purchasing groceries online.
With the acquisition of Whole Foods Market in 2017 and an ongoing partnership with one of Britain’s biggest supermarkets, Morrisons, Amazon has gained even more insights into how their customers shop.
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