The biggest retailer on the Internet is Amazon. They started out as a book company that helped college students sell textbooks to each other for discounted rates. Then, they expanded into clothing, electronics, and beyond. Now, Amazon is interested in the grocery food market.
In May 2015, Amazon applied for more than two dozen trademarks for food items. That’s because they plan on expanding their Elements brand into several grocery items like milk, cereal, pasta, coffee, and baby food. Currently, some Elements items like baby diaper and wipes are available to prime members who pay a yearly subscription rate of $99.
Ideally, Amazon would be able to take food orders and have them delivered with a next-day service. They already have Fresh Grocery delivery trucks that have temperature controls to keep food fresh. Of course, it’s also likely that Amazon will use third-party deliver services in some areas. Amazon has mastered fulfillment by comparing the costs of delivery services for their current products and vendors. It wouldn’t be a stretch to do the same thing for food items.
Amazon is currently looking for a partner to develop their private-label Elements brand. TreeHouse Foods Inc. is one potential company that would be a good fit for Amazon’s Elements brand. They had $3 billion in sales last year. Both TreeHouse Foods Inc. and Amazon declined to comment on whether a deal was actually in the making, but sources think it is likely.
If rumors are true, Amazon will roll out new food items to their Elements brand this year, and customers can expect fast and efficient delivery. Most items will probably be shipped within one day. Amazon has been successful with all of their non-perishable products, and there’s no reason why they wouldn’t do well in food delivery, too.
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