Just days after launching its AmazonFresh grocery delivery service and an effort for an advantage to keep them in stride with its competitors, Amazon announced plans, Friday, for a Pantry concept next year.
Expensive costs for sending out orders placed on the internet has previously held the process back
The new initiative will cater to consumers in the online retailer's Prime shipping program, and have 2,000 items available that are normally in the middle of grocery stores. These include cleaning supplies, kitchen paper rolls, canned goods, cereal and select beverages.
Customers will be able to put any amount of items in a box, but it must be a certain weight. Users will be charged a small fee if it is not.
"Amazon has the clubs in their cross hairs," Keith Anderson of group digital advisory at RetailNet."This will be a potential issue for Costco."
"We expect Amazon to take advantage of its strong relationship with Prime users, its existing infrastructure, and its leading online channel to continue to grow aggressively in CPG," Carlos Kirjner and other analysts at Sanford-Alliance Bernstein recently said in note to investors.
Billy Hegeman, a senior manager in Amazon's vendor management and consumables will head the operation.
"(Amazon can use its extended network of fulfillment centers) to enable better shipping economics than the current .com business," Tom Furphy of Consumer Equity Partners told USA Today. "So they'll be able to carry heavier and/or less expensive items than they have been able to previously."
Amazon users in Los Angeles and San Francisco also have access to the retailer's AmazonFresh service.
The online retailer wants to help people who spend $79 a year for quick delivery and are known to expend lots of money on the company's website, to have their products sent at an accelerated rate.
Consumers who order over $35 worth of items in quantities of 500,000 or more including bananas and broccoli tops can their items the same day.
