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10 Untold Truths about Amazon Fresh Food Delivery


As everyone’s lifestyles become increasingly
busy and hectic, seemingly small tasks become time consuming and exhausting; case in point,
going grocery shopping. However, this has opened the door for delivery
services and new ways for the grocery industry to meet their customers’ needs. One of the newest companies to jump on the
bandwagon is everyone’s favorite provider of, well, everything: Amazon. It’s time to deliver the goods on the top
10 untold truths about Amazon’s Fresh Food Delivery. Successful, yet unsteady market Amazon Fresh is available in many American
cities, such as Los Angeles, the Seattle area, New York City and Boston. However, much like its original source, it
is slowly expanding into non-American cities and countries, such as Tokyo, Berlin and central/eastern
London. It must be noted, though, that Amazon Fresh
does not deliver to dormitories or closed locations. It is also no longer available in certain
parts of Philadelphia, New Jersey and California. However, Amazon’s recent partnership with
Whole Foods could bring back services to these areas, so keep an eye out for its return! Despite its wide availabilities, Amazon Fresh
has had its fair share of challenges in establishing itself as a leader in the grocery industry. Amazon began to break its way into the industry
in Seattle in 2007. A little over a decade later, it has not established
the same sort of stronghold it expected. According to Professor Ralf W. Seifert, it
is in less than half of the cities than competitor Peapod. Despite its struggles, Seifert suggests that
Amazon Fresh has more tricks up its sleeve. First off, it has a different supply chain
configuration than its competitors. While other online grocery stores give direct
access to their products within the stores, Amazon Fresh uses certain smaller replenishment
centres, mainly located outside of larger urban areas. This allows for them to provide up to 500,000
extra items for delivery in their catalogue. Also, since Amazon Fresh is linked to Amazon
Prime, it has the potential to absorb any outstanding costs, such as warehousing, and
allow for fuller trucks to be sent out to consumers. Amazon Fresh Quick delivery time and partnerships Staying true to Amazon’s policy of never keeping
their customers waiting, Amazon Fresh deliveries can reach destinations within 24 hours. The program offers two delivery methods: attended
or doorstep delivery. If you choose in-person delivery, you can
reserve a one-hour window where you will be present to receive the package. If you are not available and choose to go
for doorstep delivery, you can reserve a 2-3 hour window where your package can be left
at your door. An example of them doing good on their promise
of good delivery is their partnership with the cooking app SideChef. Any users of the app that have Amazon Prime
are able to receive home delivered ingredients either the same day or next. To quote the apps’ CEO and founder, Kevin
Yu, “From culinary inspiration to grocery delivery and meal planning to developing the
latest in guided cooking technologies, SideChef is paving new ways in learning to cook for
any occasion.” Green Tote Bags from Amazon Fresh These reusable and recyclable tote bags are
a staple of the Fresh program. These recyclable totes usually contain ice
packs or dry ice, as well as large paper bags to hold and preserve your products. They can either be recycled or picked up on
your next order. Damaged goods are eligible for refund, so
make sure that you contact customer service representatives if you ever experience this. The Green tote bags, as ecologically friendly
as they may be, open up a discussion about one common criticism about Amazon Fresh: the
amount of packaging. One Amazon Fresh shopper has stated that she
has shopped with Amazon Fresh since her children were young due to its convenience, prices,
and product availability. She makes a few recommendations about reducing
plastic and packaging waste. Amazon has implemented the use of re-usable
paper bags, but they also give you the option to send back any plastic bags for re-use. Customers’ awareness towards which products
use excess packaging, as well as their willingness to communicate with Amazon to see change in
their department is another way to see a reduction in plastic and excess packaging. Reasonable Prices with Amazon Prime To benefit from Amazon Fresh, you must first
have an Amazon prime membership, which accrues an annual cost of $99. As a member, you can benefit from a one-month
free trial period with the program. Amazon Fresh, unfortunately, does not come
free with an Amazon membership and costs an additional monthly fee of $14.99. Combining these two costs results in an annual
fee of $280. While this may sound a little on the expensive
side, you need to factor in the myriad of costs like gas, coupons, and savings – and
your own saved time into the mix. Free shipping is available only if you spend
a minimum of $40 dollars. Another great purchase you could make (and
opportunity to acquire a three months free trial) is the company’s Dash Wand. The Dash Wand is a small, portable device
that is guaranteed to make your shopping life that much easier. Connected with Amazon’s own “Siri”, “Alexa”,
you can find recipes, use it as a virtual measuring cup, buy and order groceries and
much more. “The Amazon Effect” According to founder of Verma Media, AJ Agrawal,
the “Amazon Effect” refers to the difficulties that other companies face when competing with
Amazon. With its vast array of high quality products,
affordable prices and short delivery times, Amazon has created a unique customer service
experience and subsequent high expectations that other companies struggle to keep up with. Agrawal has made certain predictions about
how the “Amazon Effect” will influence the market, specifically the e-commerce market
in 2019. For one thing, there will be an increase in
courier software usage. A 2018 survey revealed that 43% of customers
expected faster delivery, meaning that more companies will attempt to match or exceed
Amazon’s delivery methods and times in order to meet these higher expectations. Another change expected to happen is that
mobile users will take priority over computer customers. A 2017 report from advertising platform Criteo
showed that e-commerce stores were making the majority of their sales through mobile
devices and that the number of computer users, particularly during the holiday season, was
continuing to decrease. Amazon’s jump into the online grocery industry
has inspired other companies to follow suit, resulting in many partnerships and acquisitions. For example, Target bought the start up company
Shipt, specializing in same day delivery for $550 million, and Walmart announced a partnership
with Alert Innovations, a company that uses automated carts to carry out grocery pick
up orders. Connection with Whole Foods Amazon Fresh’s investing in Whole Foods serves
as a strategic move to solidify their platform for online grocery. Whole Foods has mastered the fields of private
label branding and organic/natural products. Having a partnership with Amazon is an asset
that will allow Amazon to further excel in these areas. Another asset of this partnership is the fact
that Whole Foods has a history of creating a customer friendly image and platform with
a goal to educate in the areas of community, environmentally conscious initiatives, and
health. An improved customer oriented image would
be a bonus for Amazon to acquire. In this same vein, it gives Amazon the opportunity
to add another layer to their human employees. While there will be an increased presence
of automation, there will be more human employees present in stores such as food concierges,
personal shoppers and chef educators. These employees are not “selling” products
per se, but serve more as educators. Whole Foods’ enveloping within the Prime program
allows Amazon to receive data on its grocery consumers, which allows it to keep the best
stock and predict buying patterns. Amazon Fresh Competition While Amazon has always been a trail blazer
as far as breaking into new industries, and even creating them, many new companies are
vying for Amazon’s spot at the top of the market. While Amazon Go has been aiming for cashier-less
stores, other companies are not far behind. Here are just a few of them. Alibaba have opened up their own smart stores
in China called Freshippo, with facial recognition as their defining factor. After completing a facial recognition registration
in store with smart payment feature, AliPay, their face will be red and payment authorized
as they leave the store. Netherlands supermarket chain, Albert Heijin,
follows a similar cashier-less approach to Amazon’s. Two of their stores allow customers to tap
their phone on item tags and, shortly afterwards, their accounts are debited. Beverage brand Dirty Lemon expanded from online
to in person shopping, setting up shop in Tribeca, New York. Payments occur via text, heat-map trackers
keep an eye on customers throughout the store, and RFID technology inventories. South Korean department store mogul, Lotte,
follows in Alibaba’s footsteps, only with palm vein verification, aptly called HandPay. This technology aims to combat fraud. Automated Warehouses at Amazon As technology advances and evolves, the idea
of having automated employees (aka robots) taking over various warehouse positions has
entered the talks. However, that may not be the case for a while,
according to Amazon Robotics fulfillment director, Scott Anderson. He states that this wouldn’t come to fruition
for, at least, 10 more years. At the moment, the technology is limited in
matters such as whether a robot can pick a single product from a bin without risking
damage or picking up multiple items at a time in an efficient manner. This discussion was sparked after complaints
were made about poor working conditions in Amazon warehouses and the increasing want
for decreased human labor. Though there are certain warehouses that employ
robots, they only handle general merchandise and non-perishables, like clothes, bicycles
and the like. Derek Jones, global director of environment
health and safety at Amazon stated that “Just imagine if you want bananas. I want my bananas to be firm, others like
their bananas to be ripe. How do you get a robot to choose that?” Needless to say, there is still a ways to
go before the technology is developed enough to let robots handle fresh produce. Investing in physical grocery stores and expanding The road to normalizing online grocery has
not come without its challenges. Chief Executive of TABS Analytics, Kurt Jetta,
stated that only 4.5% of shoppers made purchases from an online grocery. He added: “There’s just not a lot of demand
there. The whole premise is that you’re saving
people a trip to the store, but people actually like going to the store to buy groceries,”
In response to these statistics, Amazon began to take more interest in “brick and mortar”
grocery stores and have purchased supply-chain software from LLamasoft Inc. They are in the process of testing out three
models: convenience stores, drive-in grocery kiosks and hybrid supermarkets that are the
best of both worlds in terms of online and in-store shopping. And it hasn’t stopped there. Amazon opened their one of a kind store “Amazon
4-Star” in the New York neighbourhood of Soho. This store only sells and carries products
that Amazon users have rated 4 stars and above. Amazon members receive discounts on these
products and non-members receive an opportunity to try a 30-day trial in order to benefit
from said discounts. Another example of their foray into the world
of physical grocery stores is that of AmazonFresh Pickup. This drive-thru concept allows Amazon Prime
customers to order their groceries online and then pick them up at designated locations. They have partnered with other grocery giants,
such as Walmart, Target, Fred Meyer and QFC to offer customers similar pick up services. Amazon Fresh is the First step to the future Amazon’s Fresh program is the first step in
Amazon’s breaking into the grocery industry. The Vice President of Amazon Go, Dilip Kumar,
stated that “One of the things that kept coming back was people don’t like waiting in lines”
when Amazon started working on retail stores back in 2013. It has now begun opening its own chain of
supermarkets, Amazon Go. They are described as sleek, modern and minimalist. What makes them stand out, however, is the
fact that there are no cashiers, cash points or self-service check out stands of any kind. Instead, as you pass the turnstile on the
way out, Amazon bills your purchase on your credit card. All the details of your purchase and even
how long you spent in the store are sent to an app. Now if you’re wondering whether this will
make shoplifting, a phenomenon that costs retailers $47 billion annually, all too easy,
then you may be surprised. CNN Business’ Matt McFarland tested the system
himself. He reported that there are hundreds of cameras
that track a customer’s every move and keep tabs on everything that is picked up. The software is also able to discern labels
and packaging differences, which avoids mischarges. This new technology can allow for the renting
of smaller spaces, an easier time ordering and restocking, as well as accrue large amounts
of customer data, which allows for an increase in offers and discounts. Stay fresh with another one of our great videos. Just tap that screen. New to our channel and don’t want to miss
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