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Get your groceries from Amazon

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Banana’s, fresh from the Amazon. Not the Amazon jungle, but from Amazon.com. That could be a reality coming soon via an eight-blade drone near you, according to a Reuters report from Alistair Barr this morning.

The business model is simple. Get a corner on warehousing, delivery, and distribution services and you are in business. Better yet, let wholesalers and retailers warehouse the goods. Cut a trading partner agreement, take orders and deliver them fast.

Since groceries are perishable to different degrees, packaging and quickness are essential. Many years ago, the concept of “quick service automation” was in vogue, and now, this is the full manifestation off the idea.

At one time, homes in America had an ice box. The Iceman delivered ice directly to the boxes.

Now, we all have refrigerators, and the goal is to fill them with necessities that require refrigeration. Fill the dry goods cupboard with appropriate items too.

Consumers must reprogram how they get groceries. For people living in high rises, it could be so convenient. However, arrangements must be made for convenient delivery, receipt, and storage. The ordering part is easy.

The same challenge exists for residential consumers.

Redesigning how people receive and store groceries needs some attention in this model.

If you were a commercial developer designing a new urban community, you could consider incorporating food drop boxes where residents pick up their grocery orders, among other things. Rethink the entire concierge model, or outsource the whole thing to Amazon-Whole Foods, or something.

“Amazon Planning Major Move Into The Grocery Business: Sources
Reuters | Posted: 06/04/2013 1:57 pm EDT | Updated: 06/04/2013 5:36 pm EDT

By Alistair Barr

SAN FRANCISCO, June 4 (Reuters) - Amazon.com Inc is planning a major roll-out of an online grocery business that it has been quietly developing for years, targeting one of the largest retail sectors yet to be upended by e-commerce, according to two people familiar with the situation.

While food is a low-margin business, Amazon could outperform similar online grocery services by delivering orders for higher-margin items like electronics at the same time.

One of the people familiar with Amazon Fresh's expansion plans said new warehouses will have refrigerated areas for food, but also space nearby to store up to one million general merchandise products, in some cases.

The company has been testing AmazonFresh in its hometown of Seattle for at least five years, delivering fresh produce such as eggs, strawberries and meat with its own fleet of trucks.

Amazon is now planning to expand its grocery business outside Seattle for the first time, starting with Los Angeles as early as this week and the San Francisco Bay Area later this year, according to the two people who were not authorized to speak publicly.”

http://www.huffingtonpost.com/2013/06/04/amazon-grocery-business_n_3385028.html

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