The giant Amazon.com has expanded its product offerings to include groceries, taking a cautious step into one of the most challenging sectors since the dot-com bubble burst.
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| Source: Reuters |
Initially, the service was limited to non-perishable items such as cereals, pasta, and canned goods. However, unlike previous online grocery stores, Amazon can deliver to any customer, anywhere in the world, rather than being restricted to a small geographic area.
Recently, Amazon has faced slow growth due to intense competition. The company has made significant investments in new content and technology to attract potential customers and strengthen the loyalty of existing ones.
Similar to other product categories that Amazon has introduced over the years, groceries were quietly launched on the company’s website starting May 25, through a trial page.
“We want to provide customers with a comprehensive shopping destination where they can find anything they need, and groceries are always a top interest for shoppers. Like any other store, we are always looking to diversify our product offerings,” a company spokesperson stated.
During the Internet boom in the late 1990s, investors poured money into a series of online grocery stores like Webvan. This project was once touted as a “bold plan” worth up to $1 billion but quickly went bankrupt after the bubble burst in 2001.
Online grocery stores that survived that period now operate quite cautiously. Some traditional grocery chains like Safeway allow customers to order online, but they impose various restrictions on products and delivery locations.
Thien Yi
