Amazon is continuing to expand its grocery business, opening four new Amazon Fresh grocery stores in the US (two in Illinois and two in California) while offering enhanced delivery and payment options to customers including expanded Key In-Garage Grocery Delivery and Amazon Contactless Payment.
For its North America segment which includes all retail areas of the business, Amazon s Q1 2021 net sales declined from Q4 2020, $75.35m to $64.36m, but registered a 40% year-over-year increase from Q1 2020.
Olsavsky noted that customer adoption of its grocery offerings has been picking up since the company added Amazon Fresh as a free Prime benefit.
According to a recent Brick Meets Click/Mercatus Grocery Shopping Survey (fielded March 26-28, 2021), total US online grocery sales hit $9.3bn for the month of March 2021 up 43% year-over-year as 69 million household placed an average of 2.8 online orders during the month.
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Amazon Expands In-Garage Grocery Delivery Service
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One of the problems with online shopping is the last-mile delivery problem. Basically, unless you’re at home waiting for your package, it often gets left on your porch which makes it attractive for thieves to steal your goods. Amazon has been experimenting with some ways to solve this problem, like delivering directly into your home or into the trunk of your car. But that is a big trust issue for many people. Who can blame them?
So, if those methods of delivery feel a bit too invasive for you, Amazon has now announced that they will be expanding the Key In-Garage Grocery Delivery service to over 5,000 US cities and towns. The program launched in November of 2020, but it was at first only available in five cities as a trial, however it seems that Amazon liked what they saw and so are now expanding the service.
28th April 2021
Amazon is hoping to make its grocery offer in the US even more appealing by rolling out its contactless garage delivery service across the country following the success of trials that begun last November.
‘Key by Amazon In-Garage Grocery Delivery’ is expanding to everywhere grocery delivery from the online giant is currently available, providing the service to more than 5,000 US cities and towns. Through the service, Prime members can opt to have their Whole Foods Market or Amazon Fresh online orders delivered securely inside their garage.
“Customers who tried Key In-Garage Grocery Delivery have loved the service, which is why we’re expanding it to everywhere Amazon offers grocery delivery,” said Pete Gerstberger, Head of Key by Amazon.
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