Amazon in the UK is introducing unlimited free grocery delivery for Prime members. The service includes a wide range of fresh foods, such as fruit & vegetables, meat, fish, dairy products and baked goods, and is launching in London on 28 July. It will then be expanded to millions of member households across the UK before the end of the year. The minimum order value has been lowered from GBP40 to GBP15, with free delivery available on orders over GBP40. Products will be delivered in two-hour windows, usually on a same-day basis.
As the COVID-19 pandemic has fuelled unprecedented demand growth in food ecommerce, Amazon is just one of many retailers in the UK investing in rapid delivery capabilities and transparent fee structures. Earlier this month, Aldi expanded its UK intermediary partnership trial with Deliveroo, while Asda partnered with Uber Eats in attempts to scale up fulfillment capacities fast. Meanwhile, Tesco will roll out a GBP4.50 flat delivery fee from August in an attempt to simplify the shopper experience.
As Amazon’s swift rollout of free grocery delivery across the country will keep competitive pressure high, brands must expect rising expectations from retailers on supply chain flexibility, packaging and online content. Brands should also recognise intermediaries as a fast-rising channel, working on process optimisation both with them directly and with the retailers whose stores they pick from.
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