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Amazon working on Pantry service for buying in bulk

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You know how people like to say that Amazon has everything? If the current plan comes to fruition, that will be even truer when the company expands into bulk purchasing, a market that pulls in $850 billion yearly, with Amazon Pantry.

Though the plans have not yet been officially revealed by the company, according to USA Today on Friday, the venture will help enable Amazon to take on membership-based stores like Costco and Sam's Club. Members enrolled in Amazon Prime will be able to use Pantry and purchase large packages of goods like cleaning supplies, canned goods and other non-perishable items such as cereal.

"Amazon has the clubs in their cross hairs," Keith Anderson of RetailNet Group told USA Today."This will be a potential issue for Costco."

Around 2,000 products are said to be available with the service, which will reportedly be up and running sometime in 2014. Prime members will be able to select whatever they want to put in pre-sized boxes up to a certain weight and have it shipped directly to them for a "small fee."

An unnamed source said that Amazon has four "fulfillment centers" in mind to stock inventory and process orders.

Though the scope is still limited, Amazon already has a presence in the grocery game with AmazonFresh, which allows customers to order groceries online and have them delivered. The service was only available to people in Seattle until June, when Amazon opened another market for it in Los Angeles.



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