Not too long ago, Amazon launched its online grocery store, which offers 15,000 different non-perishable food items. Expanding into the online grocery market segment is a sustainable strategy for Amazon, as food is a necessity, therefore the demand for it would be constant sloping. Amazon needs to continue to be innovative in order to increase business profit growth, and entering the grocery e-commerce industry is the best way.

Currently, Wal-Mart is the only other retailer that offers online grocery shopping. By entering a new market with few competitors, Amazon has the capabilities of expanding into fresh produce. Many customers turn to online shopping simply because it is of more convenience as the consumers could be restricted by time and geographical location.

Amazon is very experienced in the e-commerce market and has a very effective marketing strategy, the recommendation bar. By compiling a list of items the consumer may be likely to purchase based on their shopping habits, it will likely increase the willingness for the consumer to purchase that item. Though, there are some set backs with the recommendation bar since the recommendations may not be necessarily great ones. This recent article is a great example of recommendations gone wrong.

Sources:

http://4.bp.blogspot.com/-Ys3vLfzzxeQ/UdoL7iw3XZI/AAAAAAAADys/rlpMjpAtVWw/s1600/amazon+grocery.jpg

http://www.walmart.ca/en/grocery/N-117

http://www.theglobeandmail.com/report-on-business/international-business/us-
business/amazon-to-take-on-grocers-as-retail-landscape-gets-more-crowded/article15172182/

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcRTq7oAYpImWOXR-Ta803-DyblohkxrZQSulqSkY_LO8WfCF5CN0Q

http://www.dailymail.co.uk/news/article-2478322/Kinky-links.html