Amazon fresh

- Launched August 2007
- Only operated in Seattle
- Initially, AmazonFresh’s value proposition emphasized “a great selection and great prices and a really convenient experience”
- Partnered with local merchants to sell their products
- Amazon tapped seasoned executives with experience in both e-commerce and retail operations to lead AmazonFresh
- Aimed to keep prices comparable to grocery stores

1. BY GROUP 9 Aleeva GoyarI Ankush verma Akhil verma Jeevan rathod Puja Ashwini Sagar rathee Shivam gupta AmazonFresh : Rekindling the Online Grocery Market

2. E-Commerce: Factors that create value for consumers 2

3. About amazon fresh 3 Launched August 2007 Only operated in Seattle Initially AmazonFresh’s value proposition emphasized “a great selection and great prices and a really convenient experience” Partnered with local merchants to sell their products Amazon tapped seasoned executives with experience in both e-commerce and retail operations to lead AmazonFresh Aimed to keep prices comparable to grocery stores

4. Channel strategy 4 Product Product Product

5. Channel strategy 5 Delivery Options Next day delivery during one hour delivery window The ‘sleep tight’ service enabled customers to order later in the day and have their groceries left in a temperature-controlled tote on their doorstep during the night Distribution Distribution centres with refrigeration and freezer capabilities Totes and Coolers for packaging Gel Packs and Frozen Bottles of water required to keep the products cool

6. Challenges faced by online grocery retail Long lead times Brick and mortar stores appealed more to customers They needed their own logistics infrastructure to keep food at appropriate temperatures 6 They needed sufficient customer density in a given neighborhood Orders tended to spike at certain times (like holidays and weekends) They lacked legitimacy

7. Recommendations Educate the delivery agents to reduce the waiting time between two deliveries and ensure it by tracking them Keep limited delivery trucks under their ownership and hire trucks on contractual basis for weekends and holidays Offer attractive deals/discounts to retain customers Save their order list and provide them the option of re-ordering 7 OVERCOME EXISTING CHALLENGES Can expand to other cities Can use drones to deliver in posh localities (will reduce the lead time) Open warehouses under water FUTURISTIC APPROACH

8. Thank you