As many businesses struggle to attract and retain their customers, Amazon.com, Inc. (NASDAQ:AMZN) is trying something different. The eCommerce giant has a new concept dubbed the ‘AmazonFresh Pickup,’ which even though it is open to the public, will benefit its Prime subscribers more.
The stores will first be opening in two locations in the Seattle area and the company is confident about its success after testing them with its employees. However, given the huge number of technical problems experienced during the trials, Amazon is still carrying out another private testing.
But the grocery drive-ups are a little more straightforward
The physical locations will operate from 7 a.m. to 10 p.m. daily. The timing will incorporate both online and offline shopping and the customers can place their orders through a Smartphone app. However, there is the little difference in the handling of regular and Amazon Prime Members.
The former will have to wait at least two hours before the availability of the earliest pick up of their orders. The latter will have their groceries ready within 15 minutes. On arrival at the AmazonFresh Pickup location, a license plate reader sends out a signal and their groceries are delivered to their cars immediately.
The new freebie could give Amazon an upper hand
This will be the first time that the public will be trying out Amazon’s stores. It also looks like a smart deviation of the company’s standard AmazonFresh program. While it could be a costlier service, it comes at a time when the market has been taken up by grocery giants the likes of Wal-Mart Stores Inc (NYSE:WMT).
However, it is expected to give Amazon’s business an upper hand given that a majority of consumers want enhanced services. With its simplicity, it is likely to attract more people and will eventually ward off competition from neighborhood supermarkets, which charge a delivery fee. It is not clear yet when the AmazonFresh will hit other locations.
Additional rumors have it that Amazon could also introduce a similar concept into its Amazon Bookstores. In the meantime, Amazon’s stock closed at $995.78 witnessing an increase of $2.40 or 0.24%.
