Amazon's Desperate Grocery Play: Will Bundling Work?

Speaker A: 00:00:00

Amazon is testing tighter grocery bundling for same day deliveries.

Speaker A: 00:00:04

According to Geek Wire, Amazon is making a more concerted effort to get customers buying groceries online as they shop on the tech giants main shopping storefront.

Speaker A: 00:00:13

After loading up an online cart on Amazon.com and clip clicking proceed to checkout instead of taking shoppers to checkout, Amazon shows a page with more than 100 grocery items that can be delivered same day.

Speaker A: 00:00:26

Amazon told Geekwire quote, we're currently in iterating on new experiences that make it easier for customers to shop for fresh groceries alongside the millions of items available for same day delivery.

Speaker A: 00:00:37

End quote.

Speaker A: 00:00:38

Chris, do you think this tactic will convert more shoppers to Amazon Grocery?

Speaker B: 00:00:43

Oh man, I'm dying to hear what you think on this one.

Speaker B: 00:00:46

I, I, I don't think so.

Speaker B: 00:00:47

I don't think there's any chance in hell and I, I, I don't think this is how people actually shop for groceries.

Speaker B: 00:00:52

It may take a chunk out of the convenience store market to a degree, you know, like hey I need a quick add in.

Speaker B: 00:00:58

But, but being a long term bridge, the primary grocery destination for many shoppers, that's just a quote unquote bridge too far for me I think and is what I'd say because like in the, the author of the article's example he like did this when he bought an SD card.

Speaker B: 00:01:12

Like that's just not how I shop for groceries.

Speaker A: 00:01:15

Right.

Speaker B: 00:01:15

You know, and I'm so that's not going to actually make me go oh maybe I should just get all my groceries from Amazon.

Speaker B: 00:01:20

I don't think so.

Speaker B: 00:01:21

It's, it's just a hard thing to disrupt, especially with that local grocery trip habit that we all make to the stores and that the pandemic showed we all really want to make at the end of the day.

Speaker B: 00:01:29

So that's my thing.

Speaker B: 00:01:30

I don't, I think this is just more like okay, yeah, whatever Amazon, try it as much as you want.

Speaker A: 00:01:34

Yeah, I mean I think there's the intent issue, like what are you going to Amazon to get?

Speaker A: 00:01:39

And for, for many people it's rare that they're like I need apples and an SD card at the same time.

Speaker A: 00:01:45

Like that's just not natural behavior.

Speaker A: 00:01:48

Now do I think this costs Amazon anything to try?

Speaker A: 00:01:51

Like they're putting up an interstitial page like okay, I guess you can collect data from that.

Speaker A: 00:01:56

But I think you look at even how hard Walmart's trying just to get people to realize like with the whole who knew campaign like we have groceries Same day delivery, one hour delivery, we have TVs, saunas like whatever you need like you're I think you're totally right in saying like that's just not the mindset and intent that people are in when they're going to Amazon and I think you know Walmart here is just much better positioned because people are already going there for groceries and and it makes sense at that point to be like oh yeah I need toilet paper or paper towels or whatever so I, I I think poor Amazon you still have a, you still have a grocery.

Speaker B: 00:02:34

Amazon's grocery we haven't had a we haven't bought at Amazon about grocery you're right though I mean it's basically just they've changed the recommendation engine to serve up cucumbers and apples that's basically what I took from this article and you're right like Walmart has a much better likelihood to win in that recommendation engine battle and it's not going to change the habits over time.

Speaker B: 00:02:50

That's a great point and no.