What Grocery Retailers Can Learn From The Amazon Fresh Stores

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Amazon Fresh launched its first store in Woodland Hill, California this week. Entry into the store requires 2020’s version of The Golden Ticket, namely an insider invitation! The store is currently only open to specific customers before it opens up to the public. 

At the outset, the Amazon Fresh store might not look drastically different from most modern grocery stores. A closer inspection of the blogpost, which Amazon published last week, reveals how it will indeed be the grocery store of the future.

Here are 3 ways in which Amazon Fresh will change the game for grocery retail across the world:

(These are lessons for other grocery retailers on the innovations they must invest to come out on top)

1. The Dash Cart

Easily the most futuristic feature of the store is the dash cart. It has the tech to detect exactly what item is being put into the cart! It can even detect loose items – for example, just one peach can be linked to the shopper’s amazon account. This allows for customers to pay for their orders through their amazon account and skip checkout lines.

Lesson: Offer phygital experiences that combine users’ online accounts with real life experiences. These experiences are not only memorable, but they offer an added layer of convenience for consumers. 

2. Everything on Amazon

The Amazon Fresh store doesn’t allow just for grocery purchases, but also for customers to return other amazon packages in the store. This is something that is unique to Amazon Fresh stores! It’s a surefire way to boost both retention and footfall, for it’s not just a grocery store, it’s also a fulfillment centre. Apart from giving Amazon valuable data about its customer demographics, this convenience ensures that customers stick to one platform for everything. 

Lesson: For regular purchase items like groceries, make convenience the top priority for your customer and they’ll make your brand a habit.  

3. A fresh selection

Every Amazon Fresh store will stock a combination of white label brands [Amazon’s own], apart from regional favourites. This allows for Amazon to adjust in-store inventory based on what’s selling online and to boost recommendations based on what’s selling in-store. Ultimately, consumers will not only have their ‘old favourites’ or habitual purchases, but can also experience the joy of discovering something new based on the success of products online. It’s a win-win! 

Lesson: Combine offline and online data to make sure your customers are getting the best of both worlds. 

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