Amazon is one of the world’s biggest retailers that you will soon find in Australia. Over the next 2 years, Amazon will be launching brick and mortar grocery stores and online supermarkets. The Amazon supermarket will be smaller than Coles and Woolworths; more like the size of an Aldi store. Some of the items that will be offered by Amazon supermarkets are products that consumers prefer to inspect before making a purchasing decision like meat, dairy, fruits and vegetables and alcohol.
Consumers will also be offered the option of purchasing through an app, in-store kiosk or touch screen tens of thousands of products that will not be stored on the shelves but kept in nearby fulfillment centers for delivery to customer’s homes. Groceries can also be ordered online and then use the drive-thru lanes to pick up the order from the store. This multi-function option will increase Amazon’s sales per square meter considered an important metric for retailers.
It is also expected that Amazon will launch an Australian version of Prime Now program that offers free shipping to members who purchase a huge range of products from groceries to hot meals. Australian consumers also expect the launching of Amazon Fresh, an online grocery delivery service that was recently introduced in the United Kingdom. In the United States, Amazon Fresh stocks more than half a million products. An average grocery retailer in Australia usually stocks tens of thousands of products with Aldi offering about 1,350 grocery products.
Majority of the sales of Amazon is expected to be generated by its online grocery but it hopes that brick and mortar stores will generate similar revenue like the average Aldi store. Amazon is more comfortable with technology, distribution networks and supplier deals. The retail giant is expected to focus on its highly popular merchandise of electronics and toys.
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