You must be aware that Amazon, the biggest e-commerce platform in the US, has been doing grocery business for a long time.
It is worth noting that the company runs its grocery business under the Amazon Fresh banner and launched the Amazon Go contactless stores a few years ago.
Talking about the Amazon Go stores, the contactless part of these stores was unique and still is to this day.
You can enter the store, pick up the items you want, and leave without paying or waiting in line for checkout.
Amazon said they have specialized cameras around the stores that can detect what the customer has purchased and bill them on their Amazon accounts before they even reach their residence.
We are not saying that this idea from Amazon failed, but we are just telling you that the company is pushing back on its Amazon Fresh and Go stores.
Amazon already announced during their earnings call last week that they will cut 18,000 jobs across various sectors, and it looks like their grocery business will face the most significant impact.
Experts had also said that Amazon is running their grocery stores as an “expensive hobby,” which is yet to be fruitful while it was considered a game-changer when it first launched.
Amazon CEO Andy Jassy also said that “We’re not going to expand the physical Fresh doors until we have that equation with differentiation and economic value that we like, but we’re optimistic that we’re going to find that in 2023,”
One expert said that physical stores are different from e-commerce stores; customers want something to entice them to go to the physical stores. He adds that Amazon does not know what that enticing factor is yet. He also says that Amazon’s main advantage is its tech and e-commerce space. It has yet to crack the retail code.