Amazon Fresh expands with own in-house Bakery

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Last week Amazon announced that they’d expanded Amazon Fresh to new post codes in Hertfordshire and Bedfordshire, adding to their delivery coverage across London, Surrey, Hampshire.

One-hour delivery slots are available from 7am to 11pm, seven days a week, and customers ordering their groceries at lunch can have them delivered in time for dinner. Customers in selected postcodes have three different options for same day delivery, including 10am for 2pm delivery, 12pm for 5pm delivery and 4pm for 8pm delivery.

At the same time, Amazon revealed that they’re already competing with suppliers with their own Amazon in-house bakery offering breads, pastries and cookies. One of Amazon’s selection of local producers, shops and markets that supply Amazon Fresh includes GAIL’s Artisan Bakery, so Amazon are already competing with their suppliers.

“We value the great feedback from our customers over the past year, and it’s helping us to continually improve AmazonFresh as we bring the service to more and more Prime members across London and the South East. We have built on our momentum in the UK with the launch of AmazonFresh in Germany and Japan over the past couple of months and will keep working to expand selection, offer great value, and provide fast and convenient delivery options for all of our customers.”
– Ajay Kavan, Vice President, AmazonFresh International

In addition to their own bread plus fresh fruit and vegetables, meat, seafood, baked goods, dairy and more, Amazon Fresh customers can choose from a wide range of home, electronics, pet supplies, toys, baby, health and beauty products. All perishable products have a guaranteed minimum shelf life and, with Amazon’s Freshness Guarantee, customers can receive a refund if they are unhappy with the quality of the products they receive.

Unlike supermarkets who simply offer a substitute if your chosen product isn’t available, with Amazon Fresh if an ordered item is not available on delivery, customers will not be charged for the item but will receive a substitute product in its place for free.

There are two things that stand out to me, firstly that Amazon are rapidly expanding from a general marketplace to becoming a manufacturer as well as expanding the products they source themselves. The second is that they are also expanding their reach into their customers lives offering an ever expanding range of products – Fresh produce and their own bakery selection is just one example, but whatever product set you sell on Amazon there’s a good chance that they’ll start sourcing your own product direct.

Where Amazon don’t become a manufacturer, with their Brand Registry there is always a risk that your supplier will go direct to Amazon and one day you’ll wake up to find that you’re no longer allowed to sell until you become an authorised supplier.

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