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Grocery Segment in Amazon

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Executive Summary Amazon has grown from what started out as only an online bookstore, into this multi-diversified catalog that is now one of the world’s largest online retailers. Amazon's inventory today includes a vast array of items such as software, apparel, electronics, toys, mattresses, art, jewelry, and so much more. To expand on the ever growing catalog, the online giant jumped into the grocery market in mid-2007. Nonetheless, Amazon’s expansion into this market has been slow in comparison to its other department expansions and offers delivery to only two areas in the United States, which is a large change from its usual worldwide distribution level. This marketing plan will focus on how Amazon can further develop the grocery concept into smaller cities; refine the features of the grocery sector; and how to promote their grocery & gourmet food area in hopes to bring this part of Amazon up-to-speed with the rest of the multi-billion dollar company. Amazon's current concept has proven to work again and again, which is to offer an insanely large range of products at combatively good prices with fast, well priced, if not free, shipping, yet they are refining their grocery market. People love to shop on Amazon which is apparent by Amazon's Black Friday’s numbers for 2013, that hit $1.2 billion, (Russell, 2013) and their Cyber Monday dealings rose 39% from the previous year having customers ordering 37 million items in one day! (Stone, 2013) That is approximately 428 items a minute. With this already established winning reputation Amazon should have no problem pushing farther and faster into the grocery market, especially into smaller cities. Amazon faces many challenges with the grocery sector obviously, but this is not an... ... middle of paper ... ...ize this even more by showing items now in the persons cart that they have bought in the past and may already own so do not have to repurchase. Now this may seem like a loss of money for Amazon, but it will build customer rapport and loyalty that in the long run will pay off much more. By reaching out to local distributors Amazon would be showing that they still want to bring these businesses revenue by purchasing from them, they are simply offering another outlet for the consumer to purchase from. Amazon can swing this to consumers by asking them if they are going to on-line to shops why not pick a retailer that still employs the little guy, than one that does not. These days having a robust online stream of communication with your shoppers is extremely vital for marketing. And who knows maybe someday Amazon will have their own line in grocery stores as well.
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