Amazon's New "Pantry" Service to Compete with Costco, Sam's Club
December 13, 2013 11:26 AM
comment(s) - last by
Amazon Prime members will soon be able to order warehouse items from the new Pantry service
already delivers everything from books to clothes to electronics, and even digital services like video streaming -- so why not your groceries, too?
, Amazon is launching a new service called "Pantry," which will target warehouse club members who typically shop at stores like Costco and Sam's Club.
At launch, Pantry will offer around 2,000 products like kitchen paper rolls, canned food, pet food, cleaning supplies and grocery/beverage items. Amazon Prime members will then be able to put as many of these items into a box as they can fit (but only up to a certain weight limit).
If their items fit and don't run over the maximum weight, Amazon will ship it for a small fee.
This could be a big deal for Amazon, since the consumer packaged goods (CPG) market is worth about $850 billion a year in the U.S. Amazon's typical online shoppers fall into the same demographic as warehouse club members, according to
, so the benefits of launching Pantry could be huge.
E-commerce companies have tried to get into the packaged goods market for some time now, but have had difficulty with the high cost of shipping online orders. The problem is that many items cost about as much as it would to ship them.
But Amazon is hoping that its box method with a certain weight limit will increase the revenue per order and cover the shipping costs.
Pantry is expected to officially launch in 2014.
Amazon has already proved to make a splash with its online grocery delivery service called
It started out in Seattle roughly five years ago, and in July of this year, the company announced that it was expanding the service to other cities. Los Angeles and San Francisco were first on the list with rollouts scheduled this year, and if all goes well, Amazon plans to expand AmazonFresh even further to 20 other cities in 2014 (including some outside of the U.S.).
This article is over a month old, voting and posting comments is disabled
RE: Why do I not like this at first glance?
12/13/2013 4:33:17 PM
Ammo, whatever; I want to live somewhere where I can buy Kirkland Vodka... stupid state liquor laws.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
Amazon Expanding Its "AmazonFresh" Online Grocery Delivery Service
June 4, 2013, 11:35 PM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information