NEW YORK (AP) – Amazon is currently offering a service where Prime members can order blueberries and milk at the same time as basic items such as batteries and t-shirts, and get them within hours.
The online juggernaut said Wednesday by customers in more than 1,000 cities and towns, including Raleigh, North Carolina. Milwaukee; Columbus, Ohio, has access to fresh groceries with free same-day delivery service on Prime members’ orders of $25 or more, with plans to reach more than 2,300 cities and towns by the end of the year.
Amazon calls the move “one of the most important grocery expansions” for online retailers, bringing thousands of perishable items into their existing logistics network. The expansion is expected to put pressure on grocery delivery services offered by rivals such as Walmart, Kroger and Target.
Amazon’s stock rose 1%.
Amazon said that if the order does not meet the minimum, members can opt for same-day delivery at a rate of $2.99. For customers without Prime membership, the service is available at a rate of $12.99 regardless of order size.
In the past, prime subscriber grocery orders have been met through the Amazon Fresh Foods Market.
Prime members pay $14.99 a month or $139 a year.
Amazon began its Prime membership in 2005. This is the gold standard for subscription services with numerous perks, including Prime Video and unlimited streaming with discounts on Whole Foods and Amazon Fresh. Walmart, which launched a membership program called Walmart+ in 2020, is racing to add more benefits. It costs $12.95 a month or $98 a year. Depending on member locations and availability, Walmart members can schedule same-day delivery of groceries, including fresh produce.
“We are continuously innovating in making grocery shopping simpler, faster, more affordable, and more affordable, especially for Prime members,” said Doug Herrington, CEO of Worldwide Amazon Stores in a statement. “By introducing fresh groceries to same-day delivery services, we create a quick and easy experience for our customers.”
Herrington pointed out that customers can order milk along with electronic devices. The oranges, apples and potatoes are accompanied by mystery novels. And frozen pizza will then be checked out in one cart and delivered to your doorstep for hours, along with the tools for your next home improvement project.
The company first tested its services in Phoenix last year, then added Orlando, Florida and Kansas City, Missouri earlier this year.
Amazon said many of its customers were first-time Amazon grocery shoppers and have returned twice as often as they shop with their concurrent delivery service compared to people who are no longer buying food. Also, based on early sales, Strawberry regularly knocks out airpods from the top five bestsellers of all products sold, while Banana, Honey Crisppuro, Lime and Avocado round out the top 10 bestseller perishable grocery items in the same day delivery cart.
“It’s a great step,” said Jason Goldberg, chief commerce strategy director at Publicis Groupe, a global marketing and communications company. “It definitely makes them more competitive.”
Goldberg said Amazon is struggling to succeed with fresh food, and shoppers are confusing to order stable items and fresh food on the shelf, appearing in various online shopping carts, including Amazon Fresh. He said the move would significantly improve the experience.
Last year, Amazon said it generated more than $100 billion in total sales from groceries and household essentials.
In June, Amazon said it would triple the size of its delivery network by 2026, focusing on small towns and rural communities across the country.
We also noted that we use artificial intelligence to help predict local customer preferences so that we can stock popular items along with items targeted to specific communities.
