Prime Now provides consumers groceries from local stores, including Whole Foods Market.
In addition to groceries, Prime members can shop for household products, cosmetics, electronics, and more on Amazon Fresh. Amazon also offers food and pantry goods from Amazon Brand (its private label), as well as inventory from Whole Foods Market, including its 365 Everyday Value brand. The food selection on Amazon Fresh is massive and leverages CPG brands (as noted above), such as Progresso, Doritos, and Coca-Cola. Fulfillment and Grocery AssortmentĪmazon Fresh stores and fulfills grocery orders from Amazon’s warehouse facilities. Shoppers who purchase groceries that fall under the $35 benchmark are charged a delivery fee of $4.99 on Amazon Fresh and Prime Now. Prime members are able to get free deliveries on Amazon Fresh and Prime Now orders if they meet the $35-minimum threshold ($50-minimum requirement on Amazon Fresh for select regions).
Prime Now is a service that has been included in the cost of a Prime membership since its launch. The retailer decided to waive its Amazon Fresh fee in the fall of 2019 to encourage more consumers to use the service and become the go-to destination for grocery deliveries. Amazon previously charged members $14.99 per month to use Amazon Fresh, on top of the cost of their Prime subscription. CPG brands that have been invited by Amazon and sell their inventory on Amazon Fresh or gained access through Whole Foods Market should utilize Sponsored ads to maximize their customer reach.Īmazon Fresh and Prime Now are exclusively available to Prime members without requiring an additional fee. Popular brand names typically rely on brick-and-mortar retailers to provide shelf space that will get their goods in front of shoppers. However, brands and sellers that are carried by Whole Foods Market, which are accessible to shoppers on Prime Now, are also eligible to sell on Amazon Fresh.ĬPG brands have the upper hand by operating on Amazon Fresh and Prime Now since the programs help drive brand awareness on a widely-used digital platform and enable them to tap into a greater demographic of consumers. It is likely that Amazon made the shift in its strategy to gain centralized control over a category that was growing steadily, and is now in high demand.Īmazon Fresh leverages large consumer packaged goods (CPG) brands, in addition to its own private label and goods from Whole Foods Market. Amazon stopped selling groceries from third-party sellers on Amazon Fresh in 2018 and the program is currently invitation-only. How Amazon’s Grocery Strategy Impacts Sellersīefore diving into the comparison between Amazon Fresh and Prime Now, it is important to understand how Amazon’s grocery strategy impacts brands and sellers.
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