Amazon is making big moves in the grocery industry by lowering prices on thousands of grocery items and introducing a new private-label food brand called Amazon Saver. These discounts are part of Amazon’s strategy to offer more products at lower prices across its retail business in order to compete with major retailers like Walmart and Target. The discounts, available for Prime members who pay $139 per year, can be accessed in physical Amazon Fresh stores and through online grocery delivery.
The Amazon Fresh savings for Prime members include discounts of up to 50% on eight to 15 grocery favorites that change each week, ranging from produce to pantry staples. Additionally, there are extra savings on Prime-exclusive grocery items and other Amazon private-label brands. The new private-label brand, Amazon Saver, features a “no-frills” approach with most products priced under $5, and Prime members receive an additional 10% off. Amazon plans to introduce over 100 items under this brand in the future.
These discounts are timely as American voters are increasingly concerned about rising grocery prices leading up to the November presidential election. As part of Amazon’s efforts to enhance the grocery shopping experience, it has recently announced improvements to the Amazon Fresh online shopping storefront. Customers can now easily select frequent purchases through the repeat items feature, set preferred day and time windows for weekly grocery pickup and delivery with recurring reservations, and explore shopping zones that group products by theme.
Amazon has been experimenting with different models and pricing for grocery items since it launched the initial version of Amazon Fresh in 2007. Despite acquiring Whole Foods for $13.7 billion in 2017, Amazon continues to offer grocery delivery through Amazon Fresh and Whole Foods and operates over 40 Amazon Fresh physical stores across the U.S. The company has also introduced a monthly and yearly grocery delivery subscription for Prime members, priced at $9.99 and $99.99 respectively, and is expanding its third-party grocery delivery network.
Overall, Amazon’s introduction of discounted grocery items, a new private-label brand, and enhancements to its online shopping experience demonstrates the company’s commitment to providing customers with more affordable and convenient grocery options. By focusing on lower prices, exclusive discounts for Prime members, and a streamlined user experience, Amazon is strengthening its position in the competitive grocery market and catering to the evolving needs and preferences of consumers.
