• Amazon has been at the forefront of
internet innovation since its conception in
• Now Amazon is venturing into our next
• AmazonFresh is a grocery delivery service
that allows our customers to conveniently
order their groceries online using a computer
or a smartphone.
• We initially offered our service to the residents
of Seattle in a beta-test in 2007.
• On June 10, 2013, AmazonFresh expanded
to Los Angeles.
• This industry has been around since the dot-
com bubble, but died when the bubble burst.
• AmazonFresh is in the midst of reviving this
• Imagine our world in the future. It seems
inevitable that brick-and-mortar grocery stores
will be a thing of the past.
• AmazonFresh requires that a customer have
• Based on our research, the highest
percentage of the U.S. population with
internet access are college graduates
between the ages of 25-40.
• We also see a market for elderly. People age
55 and older are increasing their connectivity.
• AmazonFresh offers products from all areas
of a traditional grocery store.
• We have 18,000 items for purchase.
Including household name brands, as well as
farm-to-store specialty products.
• We buy our goods directly from manufacturer.
• The grocery store is a physical experience.
• The grocery store is a social experience.
• These experiences are difficult to replicate
• The last minute shopper
• Time constraint for delivery
• Competitors using Click & Connect
• Razor thin margins on grocery items
• Industry giants driving down already low
• Will users be willing to pay a membership
• Can we profit from groceries alone? And how
large must orders be? Some shoppers go 2-3
times per week.
-Kiva Systems robots
-Solid Triple Bottom Line
-Lacks physical experience
-Lacks social experience
-Last minute shopper
-Low profit margins
We have three different solutions to three
different problems in order to push the success
of AmazonFresh forward.
•AmazonFresh Farmers Market
•AmazonFresh Stow and Go
•AmazonFresh Neighborhood Association
• Partner with American Express to create the
AmazonFresh Farmers Market, much like the
American Express “Small Business Saturday.”
• Addresses problems facing the perception of freshness
and physical and social events that are associated with
• Focus on neighborhood central points that are easy for
customers to get to.
• Helps sell the membership fee requirement to unsure
• Products are already
centrally located so moving
them to the area is quick
• The locations (Santa
Monica Pier and Seattle
Waterfront) are popular
destinations for customers
and potential customers.
• Encourages social and
physical interaction with
neighbors and individuals
that are utilizing
AmazonFresh creating a
• Foot traffic is not only
constant by locals but
visitors are present as well.
• Identifying AmazonFresh
Customers- there must be
an expensive way to ensure
that they are treated and
thanked for being
• Mother Nature can easily
call off the entire event-
requiring relicensing to
utilize the area and event
• Partner with our Kiva Systems Robots to address
delivery time issues by building efficient and
customer friendly store-front kiosks.
• Addresses problems with inconvenient AmazonFresh
• Environmentally friendly and cost conscious.
• Many customers find that
times can be inconvenient
for their area.
• Orders can be fulfilled the
night before and placed at
the kiosk for pick up in a
• Cut cost of spending on gas
with delivery trucks
(emissions) and saves
money by not requiring a
• Property Cost: Although we
utilize a space the size of a
delivery truck, the property
cost could be astronomical
• Last Minute Shopper: This
solution still does not
address the last minute
shopper who ultimately
might need a product.
• Technology: While store
front kiosk in Asia are
popular, we must address
kinks that may potentially
arise in the system.
• AmazonFresh Neighborhood Association
addresses the $299.00 price tag behind
• Utilizes social media to show the cost benefits of
becoming a member of AmazonFresh.
• Named for bringing people
together through social
media to address the cost
• Provides a membership to
the premium services
provided by AmazonPrime.
• Attracts new and potential
customers by breaking
down the cost to $25.00 a
• Unsatisfied customers
might not find value in the
service that we offer
against the cost
• Can be seen as trying to
cut down a local business
with the identification of
Do you agree? What are your
thoughts, suggestions, and questions?