For Amazon, grocery is the big opportunity, it is after all the biggest category in retail in any market, shoppers will always need to eat and drink. Grocery is also where Amazon’s future growth will come from, then again it is also the hardest sector to make work profitably online.
That said, grocery has been the fastest growing category on Amazon in the US for two years now. So far the biggest growth has come from the shelf stable products Amazon sells through 1P (Amazon Retail) and 3P (its marketplace).
In both business models, Amazon and AmazonFresh, the retailer is over-indexing with younger families and higher income groups. This alone demonstrates why joining the ecosystem has become so attractive to FMCG brands. Amazon has found that once a consumables shopper has converted to an online buyer, they buy across all CPG categories.
Amazon is now ramping up its online grocery offer outside the US as well. We answer the questions whether there will be a shift from shelf stable to fresh on the cards, and what the online grocery strategy for the marketplace is and what the plans are for Europe and FBA.