Amazon is stepping up its push into the grocery market with the launch of a new value-orientated food range in the US.
Called Amazon Saver, the range includes a selection of everyday items, including meat, crackers, biscuits, canned fruit, and condiments. Most of the items are priced under $5, with members of Amazon’s Prime scheme receiving an additional 10% discount.
The online giant stated that the Saver offer complements its other own-label lines and is designed to help customers make the most of their grocery budget. After the initial rollout of several products, Amazon plans to add more than 100 items to the Saver selection over time.
The launch came alongside the announcement that Prime members in the US would benefit from extra exclusive savings on over 3,000 grocery items in-store and online at Amazon Fresh. This include 10% off more than 1,700 products from its own-label offer, 25% off 1,200+ grocery and household items from leading brands, and 50% off select grocery favourites that rotate weekly.
“We’re always looking to make grocery shopping easier, faster, and more affordable for our customers,” said Claire Peters, worldwide vice president of Amazon Fresh.
“With expanded Prime member savings, the introduction of the new Amazon Saver brand, and simplified online shopping, it’s now easier than ever to get your weekly grocery shopping done on a budget with Amazon Fresh – whether you’re browsing the aisles or filling your online cart.”
Commenting on the new Amazon Saver range, Global Data analyst Neil Saunders noted that it would offer “some sharper opening price points across key categories.”
He added: “It makes sense because, after years of high inflation, consumers are laser like focused on value when they are grocery shopping. That’s one of the reasons there has been a migration to store own brands across many categories. Amazon still has big ambitions in grocery, so it needs to jump on this bandwagon as well as sharpen its value for money position.”
Saunders went on to say: “Success depends on price points being genuinely competitive, but also on communicating these well in stores and online. It is also important that the new brand establishes a reputation for reasonable quality. Consumers do not want cheap products; they want good products with low prices.”
NAM Implications:
- Just because Amazon launches something in the US doesn’t mean the UK will follow, yet…
- But if this initiative works over there…
- …then a ‘what-if’ re impact on your UK offering can’t hurt.
- Especially if it is Amazon’s way to ‘make grocery shopping easier, faster, and more affordable for their (and your) customers’
- As the man says, “Consumers do not want cheap products; they want good products with low prices.”
