Amazon will let Prime members in Phoenix get same-day deliveries for both groceries and Amazon products. The company is expanding this service and adding micro-fulfillment centers and low-cost grocery items to compete with rivals like Walmart.
Amazon is upgrading its grocery service, allowing Prime members in Phoenix to order both fresh groceries and other Amazon.com items for same-day delivery. Previously, only groceries could be delivered in this timeframe. Amazon plans to expand this combined delivery service to other cities but has not yet disclosed which ones. This service is a part of Amazon's effort to streamline the shopping experience and compete with other delivery platforms like Walmart and Instacart.
Amazon is also improving its Amazon Fresh fulfillment centers by offering products from three of its brands — Amazon.com, Amazon Fresh, and Whole Foods. Customers can now order items from all three in one go. This will first be available in nine Amazon Fresh centers, with more locations coming soon. This integration is meant to reduce confusion for shoppers who previously had to navigate between different stores on Amazon.
Amazon is building its first micro-fulfillment center at a Whole Foods store in Plymouth Meeting, Pennsylvania. Micro-fulfillment centers are smaller warehouses that store inventory closer to customers to reduce delivery times and costs. This new location will feature products from both Amazon.com and Amazon Fresh. Shoppers will be able to either order for quick delivery, pick up items, or shop in person. The service will launch next year.
In response to rising inflation, Amazon recently introduced its “Amazon Saver” line of budget-friendly grocery products. These items, priced at under $5, are designed to attract customers looking for cheaper options. The move is Amazon's attempt to compete with Aldi, Target, and Walmart, who already offer affordable private-label brands. "Amazon Saver" offers household essentials, pantry staples, and fresh produce at lower prices, giving consumers more value for their money.
Will Amazon's budget groceries challenge Aldi and Walmart?
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