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Amazon muscles in on grocery market

Adam Zuchetti
Adam Zuchetti
17 October 2018 1 minute readShare
Bag of groceries

Online retail giant Amazon is set to further expand its footprint in Australia, announcing that it will now offer a range of everyday groceries – in direct competition with the supermarket giants.

In a statement, Amazon said that the launch of a new “Pantry Food and Drinks” category will see the marketplace grow its range to “more than 80 million products”.

“Customers can now shop from local favourites such as Arnott’s, Milo, Uncle Tobys, Masterfoods, T2, Carman’s and Sanitarium, as well as international favourites such as Oreo, Powerade and M&Ms,” it said.

Amazon’s Australian head, Rocco Braeuniger, said the move was aimed at “bringing greater convenience to customers, underscored by everyday brilliant value and fast delivery”.

The company is hoping that its Prime service, which it said offers “nearly 90 per cent of Australians… access to free two business day delivery” on eligible items, will help to lure customers away from the supermarket giants.

Amazon also said that customers not signed up to its Prime service will receive free delivery on orders over $49.

That compares with the existing delivery services of Woolworths, where charges are imposed on orders below $300. Meanwhile, German giant Aldi, which does not currently offer a delivery service, has led individuals to advertise Aldi deliveries through sites such as Airtasker.

The Coles website was temporarily unavailable when My Business sought access to its delivery charges.

Amazon, which has grown to become one of the world’s largest companies by market value, launched in Australia in early December last year.

At the time, the launch was labelled “a major flop”, but the retailer has since expanded its service offering in a bid to woo customers and sellers alike.

In addition to the Prime delivery offering and progressively expanding its product offering, Amazon launched a fulfilment centre in February and opened a second distribution centre in May to increase its stock holding.

Amazon muscles in on grocery market
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Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

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