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Amazon.com adds groceries to its product mix |
06.23.2006
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SEATTLE--Internet retailer Amazon.com Inc. began selling shelf-stable groceries, including natural and organic products, on its Web site May 25, according to a Reuters article.
The online grocery store includes more than 10,000 non-perishable items such as cereal, coffee, tea canned soup, diapers and laundry detergent, as well as specialty products such as Zico Pure Coconut Water and Immaculate Baking Co. organic cookies.
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"Because we only carry products when we can offer great prices and free shipping, we don't carry everything yet," according to a disclaimer on the company's Web site. "We don't currently offer perishable items such as milk, fresh meat or peaches because we can't ship these for free." New products are added daily.
Unlike online grocers that deliver orders via refrigerated delivery trucks, such as Peapod, Skokie, Ill., and FreshDirect, Long Island City, N.Y., Amazon ships sundries. To keep costs low, some grocery items are sold in larger sizes and some might be wrapped in manufacturers' original cases, Amazon said.
Items are eligible for Amazon's free Super Saver Shipping.
This isn't Amazon's first foray into the online grocery business. In 1999, Amazon invested $42.5 million into HomeGrocer.com, an e-grocer that later merged with another e-grocer Webvan. Webvan flopped after spending almost $1 billion on an "overzealous expansion," The Wall Street Journal reported.
Since its launch in July 1995, Amazon has evolved to offer apparel, housewares, electronics and toys. In October 2003, Amazon.com rolled out a gourmet food store, featuring more than 10,000 SKUs.
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