Key Takeaways:
– Amazon introduces new private-label food brand, Amazon Saver.
– Discounts offered as high as 50% on certain goods for Prime members.
– Amazon Saver aims to provide multiple items under $5 with extra 10% off for Prime members.
– User interface on Amazon Fresh Online has been simplified for customer ease.
– Service includes a repeat items feature, recurring reservations, shopping zones, and new navigation.
– Prime members can access grocery delivery subscriptions either monthly or yearly.
Amazon Launches ‘Amazon Saver’ Label
Online retail giant Amazon recently announced the launch of a new private-label food brand named Amazon Saver, in its bid to offer a wider range of grocery products at more affordable prices. This move is seen as Amazon’s latest attempt to stake its claim in the competitive retail landscape and the escalating price war with Walmart and Target.
Amazon Saver is a no-frills brand that aims to offer most products under $5. Prime members receive an additional 10% off on these products. Several products within this label have already been released and Amazon plans to increase this selection over time up to more than 100 items.
Groundbreaking Discounts for Prime Members
Primarily aimed at Prime members, the new savings under Amazon Fresh include a 50% discount on an array of 8 to 15 rotating grocery items every week. The discounted items comprise of produce, protein, and pantry basics. Further incentives come in the form of extra discounts on Prime-exclusive items and Amazon’s private-label brands.
It’s worth noting that the annual cost for Amazon Prime membership is set at $139. These discounts can be availed both in physical Amazon Fresh stores as well as through online grocery delivery services.
Revamping the Online Shopping Experience
In another consumer-friendly move, Amazon also revealed its revamped user experience for the Amazon Fresh online shopping platform. This redesign accommodates several easy-to-use features.
Customers can now effortlessly select items they frequently purchase via the new ‘repeat items’ feature. The platform now also allows users to set their preferred day and time slots for weekly grocery pickup and delivery using the ‘recurring reservations’ feature. Additional features include shopping zones that group products by theme and an improved categorization system allowing users to switch between categories aisle-by-aisle with new navigation.
Grocery Delivery Subscriptions
Since the inception of its Amazon Fresh venture back in 2007, Amazon has been exploring various models and pricing systems for grocery items. Today, Amazon still offers grocery delivery services from both its Amazon Fresh brand and Whole Foods, which it acquired for a whopping $13.7 billion in 2017.
Amazon recently launched an attractive grocery delivery subscription service for its Prime members. A monthly subscription comes at a nominal fee of $9.99 and an annual subscription is priced at $99.99.
Amazon’s move to reduce its product prices and introduce an affordable line comes at a time when consumers are increasingly citing grocery prices as a top concern. As the price wars quickly escalate, it’s clear that Amazon is more committed than ever to winning over its customers while increasing its market share. Time will tell how these developments impact the retail sector as we head towards the end-of-year shopping frenzy.
