Amazon.com, Inc. (NASDAQ:AMZN) is planning its foray into grocery. The move comes on the heels of its rival Wal-Mart Stores, Inc. (NYSE:WMT) trying to expand its e-commerce business. The online retailer’s first grocery store will likely to come to Sunnyvale. That is an addition that the retailer is attempting to fulfill the wishes of its customers. The company has been serving almost everything be it coffee or prescriptions or dry cleaning or fries or burgers for a long time.
New Distribution Tactics
Amazon.com, Inc. (NASDAQ:AMZN)’s move in Silicon Valley will enable customers to order and pick up from a dedicated facility. That means the company will have to adopt a different distribution tactic. Also, the entry of the biggest online retailer means that the competition will heat up and will threaten the smaller players in the industry, which is in the midst of change.
The entry of the online retailer will also signal the emergence of the new generation of the food distribution system, according to Brick Meets Click Chief Architect, Bill Bishop. The firm is engaged in a retail, as well as, e-commerce consultancy business. Supermarkets and grocery store market were worth $596 billion with annual growth rate of 1.5% between 2010 and 2015.
Building Plan
Amazon.com, Inc. (NASDAQ:AMZN) is yet to disclose officially the location from where it is planning to launch the grocery. However, a real estate developer seems to have submitted a plan for the new 11,600-square-foot facility, as well as, a pickup area. Though the online retailer was not mentioned in the documents of planning, the real estate sources reportedly said that the company might be the tenant.
The concept of the building is much similar to that of Amazon.com, Inc. (NASDAQ:AMZN). That is giving more evidence that the company is launching its facility from the Silicon Valley. The company has neither confirmed nor denied the reports. Other officials have also refused to confirm the identity of the tenant.
Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, is an e-commerce company. The Company offers a range of products and services through its Websites. The Company’s products, offered through consumer-facing Websites, include merchandise and content that the Company purchases for resale from vendors and those offered by third-party sellers. The Company offers its own products as well as third-party products across various categories, through its retail Websites and through its mobile Websites and applications. It also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo and Fire phones.
The Company offers programs that enable sellers to sell their products and fulfill orders through the Company’s Websites and the sellers’ own Websites. It serves developers and enterprises of various sizes through Amazon Web Services (AWS), which offers a set of global compute, storage, database, analytics, applications and deployment services. It serves authors and independent publishers with Kindle Direct Publishing, which is an online platform that lets independent authors and publishers choose a 70% royalty option and make their books available in the Kindle Store, along with Amazon’s own publishing arm, Amazon Publishing. It also offers programs that allow authors, musicians, filmmakers, application developers and others to publish and market content.
Amazon.com operates in two segments: North America and International. The North America segment of the Company focuses on retail sales earned through North America-focused Websites. The International segment focuses on the Company’s operations done through its international Websites. The Company’s retail Websites include www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es, www.amazon.com.br and www.amazon.mx. The Company through its Websites offers products under various categories, including instant videos, digital music, Appstore for Android, Amazon Cloud Drive, Kindle E-readers and books, FIRE tablets, FIRE TV, FIRE phone, books and audible, movies, music and games, electronics and computers, home, garden and tools, beauty, health and grocery, toys, kids and baby, clothing, shoes and jewelry, sports and outdoors, automotive and industrial, and credit and payment products.
North America
The North America segment of the Company is engaged in the retail sale of consumer products, including from sellers.Amazon.com also offers digital content subscriptions through North America-focused Websites, such as www.amazon.com and www.amazon.ca. The segment also includes the operations of AWS. The North America segment includes export sales from www.amazon.com and www.amazon.ca.
International
The International segment of the Company is engaged in the retail sale of consumer products and digital content subscriptions through internationally focused Websites. The International segment includes export sales from these internationally based Websites (including export sales from these sites to customers in the United States and Canada).
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