Why is Amazon Buying Whole Foods?

Amazon wanted a bigger retail footprint

Previously Amazon had been mainly dealing with online shopping. But things started to change in 2016 when Amazon announced plans to start a mobile-checkout-based grocery store to be located in Seattle. The acquisition of Whole Foods brought by Amazon added 465 physical stores to its chain that it can use to enhance its envisioned future retail expansion.

Faster delivery of perishable foods

Amazon Prime already delivers certain groups of products such as electronics, paper towels in less than an hour by simply sourcing them from 70 localized centers. With acquisition of Whole Foods, Amazon can now deliver food orders under its Prime Now concept

Amazon wants a better grocery selection and to ward off competition at the same time

Amazon appears to have thought that adding Whole Foods wholesome selection on its acclaimed AmazonFresh service of grocery delivery could give it an advantage against the likes of FreshDirect and Peapod whose express delivery service covers over two-thirds of the American Market.

Greater home presence

Amazon already has wands that add a product to your shopping list when waved over the barcode, buttons you can use to reorder a range of household items by pressing among others. These technologies often direct consumers to the online megastore of Amazon. The addition of Whole Foods in the game makes it whole better.

Posted in Internet Marketing, News.

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