Amazon.com Inc is eliminating its grocery delivery charge for Prime members in t...
- Amazon.com Inc is eliminating its grocery delivery charge for Prime members in the United States and making shopping easier by combining AmazonFresh and Whole Foods Market ordering on a single site, as it battles rival grocery sellers like Walmart Inc and Kroger Co.
Amazon has fat profits from its Web Services business and has demonstrated a willingness to lose money on initiatives aimed at driving more customers to its sprawling online marketplace. Amazon said in 2017 it was ending its Fresh grocery delivery service for select areas. Landry, however, said the business is growing and has expanded this year to areas like Nashville, Orlando and Las Vegas.
Profits from grocery sales are notoriously slim. But selling staples like bananas, milk and toilet paper gives retailers like Amazon, Walmart, Target Corp the opportunity to upsell shoppers who make frequent visits to replenish such necessities. “This new delivery effort is yet another example of Amazon’s willingness to suffer short-term for the potential for long-term benefit,” O’Shea added.
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