Rich Gorman Explains New Grocery Service from Amazon.com
New York, New York (PRWEB) July 29, 2013 -- According to online business leader and technology pundit Rich Gorman, a few lucky Americans may soon find their groceries being delivered directly to their door—all thanks to Internet retail giant Amazon.com. To back up this point, Gorman points to a recent CNBC article, which makes note of Amazon’s move into fresh grocery delivery. Gorman has issued a new statement to the press, commenting on this unusual new endeavor from Amazon.com, and on the business sense behind it.
“In some ways, this is no unusual at all,” says Rich Gorman, noting the fact that Internet-based grocery vendors have been around ever since the original dotcom boom. In fact, even Amazon.com has some experience in grocery delivery; the company made this service available to its Seattle customers some six years ago. “What is worth commenting on is the slow-and-steady rollout of this new service—which perhaps betrays Amazon’s understanding of how precarious this business proposition is, how it could really end up going either way.”
The extension of Amazon.com’s grocery delivery program—called AmazonFresh—is only available to those in Los Angeles. The service is for Prime members only, and costs an additional $299 a year, following a free trial.
According to Gorman, the high price tag is likely a strategic way to keep Angelinos from stampeding into this new service. “This is likely an undertaking that Amazon would like to start small and build incrementally,” he comments. “Why, just look at the six years they have spent developing the program from its Seattle roots. The company probably does not have the infrastructure in place to handle too great a demand.”
Other companies have tried similar undertakings, CNBC notes, including Wal-Mart, which has long experimented with grocery delivery in the Bay area.
Continues the article, “It's not clear if Amazon is making money on its grocery ventures, but that might not be the point.”
Rich Gorman explains what this means. “As this article points out, the real point of this may simply be to convince a large number of consumers to move their purchasing online,” he opines. “As such, even if it breaks even, simply by bringing more consumers into the online shopping fold, Amazon will have succeeded.”
Amazon’s move into online groceries comes a year after it agreed to begin collecting sales taxes in the State of California—in exchange for which, it has become empowered to build up the distribution centers necessary for the AmazonFresh expansion. The company has yet to comment on whether its grocery delivery program is expected to expand further.
“Amazon's grocery prices aren't necessarily cheap,” CNBC notes. “Prices are comparable to those of Wal-Mart's online lineup, though generally a little higher. One advantage both companies have is their ability to include other merchandise from their websites in grocery orders.”
Rich Gorman is an online marketing leader and business visionary.
ABOUT:
Online marketing pioneer Rich Gorman is widely regarded as one of the top voices in the direct response marketing field. As an industry authority and prolific blogger, Gorman has given away millions of dollars worth of trade secrets and insider tips. Furthermore, he is passionate about the fields of online reputation management and social media marketing. Gorman has successfully launched and sold numerous thriving businesses, in various fields.
Marcy Johnson, PR Management Inc., 484-362-9658, [email protected]
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