Is the grocery market Amazon’s Waterloo?

jeff bezos illustration

Despite Amazon’s ability to corner the vast majority of online shopping, it hasn’t yet figured out how to dominate the $1 trillion U.S. grocery market.

Amazon controls less than 1 percent of a fragmented U.S. grocery business. American consumers are buying groceries online, but haven’t changed their food-buying habits as quickly as they have for, say, buying shoes or electronics.

But if the U.K. market is any indication — government statistics show 5 percent of grocery shopping is done online there — then the shift is coming.

Amazon has made it clear it intends to go after grocery the same way it took on books and electronics. Its Amazon Fresh grocery service, however, has already taken nearly a decade to roll out.

Buying groceries on Amazon requires the same kind of meal planning of a regular shopping trip, but also means shelling out a hefty fee for delivery. And the competition is steep.

 

Posted in: Infographic of the day

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