Jeff Rudat’s Post

Can Amazon crack the puzzle of grocery e-commerce profitability for companies and affordability for consumers? The company has a new grocery subscription available to Prime members and customers using EBT. The subscription, which costs $9.99 per month for Prime members and $4.99 per month for non-Prime members with an EBT card, provides free grocery delivery on orders over $35 across Amazon Fresh, Whole Foods Market and grocery partners. The new subscription builds on existing Prime benefits and marks the latest move by Amazon to tweak its grocery offerings such as the removal of Just Walk Out at stateside Amazon Fresh stores and two Whole Foods locations that have the technology and ramping up smart carts in its grocery locations. Grocery delivery has been one area in particular that Amazon has grappled with recently. Last year the company has raised and lowered order minimums for free delivery and started offering grocery delivery and free pickup to non-Prime members in all markets where its Amazon Fresh stores and online services operate, with plans to expand grocery delivery and free pickup from Whole Foods to shoppers who aren’t Prime members. https://lnkd.in/eR3S_FYy #grocery #ecommerce #amazon #delivery #subscription

🚨 NEW update from Amazon this morning – Amazon is making its grocery subscription pilot official, a step towards One-Amazon. The pilot previously ran in Ohio, Colorado, and California in late 2023. 🚗 🍎 https://lnkd.in/gkQtJ9PK 🛒 TLDR: • Prime members in 3,500 U.S. cities can pay $9.99 per month for unlimited grocery delivery (and pickup) on orders that are $35+ (EBT pays $4.99, free 30-day trial available) • Same cost-structure as Instacart+ • Grocery stores include: Whole Foods Market (WFM), Amazon Fresh Stores (AFS), and other local grocery and specialty retailers • Delivery Speed – as fast as one-hour delivery at no extra cost (where available) • Pickup Times – unlimited 30-min pickup & recurring reservations for weekly grocery trips at WFM and AFS   ✏ CRC’s Conclusion: • Amazon’s One-Grocery test represents a new phase in its journey to provide a holistic grocery offering to its consumers which, if successful, is a significant development for consumers, suppliers, and peer retailers. • However, while exciting that Amazon has finally settled on a nationwide delivery strategy, near-term, things remain quite bleak with Amazon Fresh as sales continue to trend negative Y-Y even as the business laps the $150-delivery minimum implementation last year. • Additionally, there is a lack of conviction regarding growth catalysts on the horizon, including: 1) new store openings, 2) remodeled/V2 stores, and 3) promotional events. • With trends underwhelming, brands are utilizing this opportunity to right-size total investments as well as look to have Amazon fund (or at minimum co-fund) promotional activity throughout 2024. 📥 DM if you’d like to see our full report on Amazon Fresh! https://lnkd.in/gdgeTJgD

Attention Food Sellers! Amazon Introduces Low-Cost Grocery Delivery Subscription Calling all #Amazon food vendors! Great news for your business! (https://lnkd.in/dQGYG-ia) Amazon just announced a new low-cost #grocery delivery subscription, targeting both Prime members and customers utilizing #Electronic #Benefits #Transfer (#EBT) cards. This translates to a wider potential reach for your business and the chance to connect with new customers. What does this mean for you?  -Increased #Visibility: Your brand can appear in front of a broader audience of potential buyers.  -#Sales #Boost: The convenience of home delivery can encourage purchases of your products.  -Loyal Customers: Recurring subscriptions can help you foster customer loyalty. This new subscription presents an unmissable opportunity for Amazon #food sellers. We can help you to leverage this new implementation and contact us at cizelo@amazingagency.io or at https://lnkd.in/dfDDs4u8 to optimize your Amazon sales strategy! #Amazon #GroceryDelivery #Subscription #Prime #EBT #Opportunity #DigitalMarketing #AmazingAgency 

As grocers continue to seek solutions to bridge the gap between e-commerce’s operational costs and its affordability for shoppers, Amazon’s newly announced grocery subscription program has put a renewed spotlight on the role subscriptions can play. Amazon is positioning its newly announced grocery subscription, which costs $9.99 per month for Prime members or $4.99 per month for non-Prime members with an EBT card, as a “low, monthly fee” that “pays for itself” after one delivery per month.  “If you order once from Whole Foods a month, it pays for itself, or once from Amazon Fresh for orders under $40, it pays for itself,” Amazon CEO Andy Jassy told investors Tuesday. It should be interesting to see how Loblaw Companies Limited or Sobeys or Safeway or Metro Inc. or Publix Super Markets or Walmart others respond to to Amazon grocery model.

Amazon Fresh announces changes to enhance grocery shopping experience in the US. Amazon is taking steps to address concerns about rising prices and provide its customers with more affordable grocery shopping options. Here are the latest updates: - Lowered Threshold for Free Amazon Fresh Delivery: Effective October 5th, Amazon has reduced the minimum order amount for free delivery on Amazon Fresh orders from $150 to $100 for Amazon Prime members. This change is aimed at making grocery shopping more accessible and cost-effective. - Savings for Prime Members: Amazon is emphasizing the benefits of Amazon Prime memberships, which offer competitive pricing both online and at Amazon Fresh physical stores. Additionally, Prime members can take advantage of the Prime Visa credit card, offering an unlimited 5% cashback on purchases, as well as discounts of up to 50% on thousands of items in the deal section. - In-Store Discounts: Amazon is making it easier for Prime customers to find discounts while shopping at one of its 44 brick-and-mortar Amazon Fresh stores. Prime members can simply scan an in-store code using the Amazon app or use a credit card linked to their Prime account at the register, on the smart Dash Cart, or at the Just Walk Out exit. - Prime Big Deal Days: Mark your calendars for Prime Big Deal Days, taking place from October 10th through October 11th. Prime members will gain access to millions of deals worldwide, surpassing last year's offerings. Keep an eye on Numerator, a data and tech company, for live updates on consumer purchasing and sentiment during the event. #AmazonFresh #GroceryShopping #PrimeBigDealDays #deliveryfee #perks #affordability #inflation #pricing #egrocery #USA #foodtech

During its trial, Amazon's new grocery subscription program provided some uplift from customers who subscribe: engagement was better, basket size was bigger, and frequency of shopping improved. That’s all positive. A lot of consumers who subscribed during the trial were people who already shopped for food at Amazon or Whole Foods, both physically and digitally. There were also some activations from shoppers of lapsed Amazon grocery programs. However, one of the keys to success will be attracting brand new shoppers. The trial did pull in some, but probably not enough for Amazon to receive a major boost to its grocery share. So, this program likely moves the dial a bit, but not by a lot. The lower cost for those on benefits is nice, but I can’t see lower income shoppers flocking to Whole Foods; but it might be attractive for those using local grocers powered by Amazon. Thanks to Grocery Dive for including my thoughts in this article... https://lnkd.in/gueM2q3f #retail #retailnews #food #grocery #ecommerce

Amazon trying agressively to expand its footprint in large grocery market. Amazon has launched a subscription-based grocery delivery service for its Prime members. The service aims to simplify grocery shopping and cater to diverse shopping preferences. The subscription costs $9.99 per month ($4.99 for SNAP/EBT customers) and offers unlimited delivery on orders over $35. It is available in 3,500 cities in the U.S. and includes a 30-day free trial for Prime members. The service is available at Whole Foods Market, Amazon Fresh, and other local grocery and specialty retailers on Amazon.com. It offers one-hour delivery windows, priority access to recurring reservations, and access to a wide range of national brands and natural and organic foods. The service builds on a successful pilot program launched in 2023, with over 85% of respondents being extremely or very satisfied. Prime members shopping at Amazon Fresh and Whole Foods Market also have access to exclusive deals and can earn unlimited 5% back on purchases with their Prime Visa. Amazon's acquisition of Whole Foods in 2017 has helped expand its presence in the brick-and-mortar grocery space. #amazon #grocery #subscription

🌟 Interesting insight: Amazon now allows non-Prime members to order groceries from its Fresh stores in select US cities. 🛒🚚 📋 Insights: - Non-Prime customers can now place online orders from Amazon Fresh stores and warehouses. - Initial rollout includes cities like Boston, Dallas, and San Francisco. - Non-Prime users will still have to pay delivery fees, which are slightly higher than for Prime members. - Amazon plans to expand the non-Prime grocery delivery initiative nationwide by the end of the year. - Eventually, non-Prime customers will be able to order from Whole Foods and other third-party grocers through Amazon. - Amazon is streamlining the ordering process by letting users create a single cart for Whole Foods, Amazon Fresh, and other stores on its marketplace. 💡 My thoughts: This move by Amazon makes grocery shopping more convenient for everyone, even without a Prime membership. It shows their commitment to expanding their physical store network alongside their e-commerce platform. I'm excited to see how this change will impact the grocery industry and customers' shopping habits. 🛍️ 🤔 What do you think about Amazon's expansion of grocery delivery to non-Prime members? Are you more likely to try Amazon Fresh now? Share your thoughts! #AmazonFresh #GroceryDelivery #Convenience https://lnkd.in/eWJV3kCb

🌟 Interesting insight: Amazon now allows non-Prime members to order groceries from its Fresh stores in select US cities. 🛒🚚 📋 Insights: - Non-Prime customers can now place online orders from Amazon Fresh stores and warehouses. - Initial rollout includes cities like Boston, Dallas, and San Francisco. - Non-Prime users will still have to pay delivery fees, which are slightly higher than for Prime members. - Amazon plans to expand the non-Prime grocery delivery initiative nationwide by the end of the year. - Eventually, non-Prime customers will be able to order from Whole Foods and other third-party grocers through Amazon. - Amazon is streamlining the ordering process by letting users create a single cart for Whole Foods, Amazon Fresh, and other stores on its marketplace. 💡 My thoughts: This move by Amazon makes grocery shopping more convenient for everyone, even without a Prime membership. It shows their commitment to expanding their physical store network alongside their e-commerce platform. I'm excited to see how this change will impact the grocery industry and customers' shopping habits. 🛍️ 🤔 What do you think about Amazon's expansion of grocery delivery to non-Prime members? Are you more likely to try Amazon Fresh now? Share your thoughts! #AmazonFresh #GroceryDelivery #Convenience #stuartbrisgel #b1financial

Will Amazon bite into grocers' market share? The retail giant's new monthly grocery subscription will encourage Prime members to add more food to their carts. Lowering the minimum order threshold to $35 makes Amazon groceries accessible to more consumers. It’s also closer to rivals’ pricing models. A national rollout would help Amazon compete by: 🍎 Increasing sales 🍊 Deepening members' loyalty 🍋 Gaining new insights to fuel CPG retail media ad sales. What do you think of Amazon's new grocery program? See the recent RetailWire article by Tom Ryan and join in the discussion. #retail #ecommerce #grocery #CPG