Amazon Fresh expanding to more ZIP codes

Jan. 28, 2013

Doorstep delivery of supermarket groceries could soon be available in more neighborhoods. Internet giant launched the grocery delivery service Amazon Fresh in 2007, and last week announced plans to extend the service to about 80 ZIP codes, reported.

A broader rollout of Fresh once seemed unlikely as Amazon's reluctance to charge customers sales taxes prevented it from expanding to most parts of the U.S., the article said. But in 2011, Amazon cut deals with states to collect sales taxes, opening the door to more distribution hubs.

While industry analysts say that the service is too expensive to be profitable, some agree that Amazon CEO Jeff Bezos will stick with the program for as long as it takes to show promise.

"It is a very convenient service, but picking, packing and delivering grocery orders is expensive," said former technology vice president Nadia Shouraboura, in the article. "Just like apparel, the grocery business is both large and ripe for innovation, so I wouldn’t be surprised to see Amazon be very persistent and patient ... Jeff always thinks long-term."

Read more about online retailing.

Topics: Online Retailing , Supermarkets & Grocery Stores

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