This blog post by Brandon Kothe caught my attention. Amazon, one of the biggest online retail sites, has launched an online grocery section in Canada, “offering 15,000 dry food items, including packaged beverages, breakfast foods, pantry supplies and snacks”. This implementation will allow Amazon to compete with competitors like Walmart who already have an online grocery shopping service in place.

Amazon prices products through a process called ‘dynamic pricing’ which adjusts prices according to large amount of research and data. This system gives them a competitive edge over other companies such as Walmart. Since Amazon is already well known for their online retail and shipping system, online grocery will not be a problem for them but rather, a success. In fact, I believe this new service will attract more customers and maybe even change the future grocery industry. Although this is a great way for Amazon to introduce something new to increase its customer base, as consumer demand increases for online grocery products, this service may become too much of a hassle to continue to operate, considering the additional costs incurred to run this service.

Article: http://www.cbc.ca/news/business/amazon-launches-online-grocery-store-in-canada-1.2303320