June 20, 2006 2:14 PM
Never mind.
I said this morning I hoped to bring you all some news of a Peapod alternative for those of you outside Peapod Land.
I'm glad I waited to do my homework first, because it didn't turn out to be all I hoped.
Articles like this one from the Boston Globe had gotten my hopes up:
Amazon Bets on Groceries
E-tailer says bulk buys make a super market
By Hiawatha Bray, Globe Staff | June 19, 2006Amazon.com taught millions of Americans to buy books, music recordings, clothing, and electronic gadgets over the Internet. Now the giant online retailer wants to sell you cornflakes, disposable diapers, and doggie treats, all ordered on the Web and mailed to your door.
With almost no fanfare, Amazon has gone into the supermarket business. The company launched the new Amazon Grocery on May 25, offering nearly 15,000 nonperishable items. It's a business model reminiscent of the Internet bubble of the late 1990s, when companies like Pets.com flopped while peddling online sales of bulky items like dog food.
But Amazon spokeswoman Tracy Ogden said that her company will benefit from its success in other online retail markets.
``It's not just about buying groceries online," Ogden said. ``It's about having access to music, apparel, DVDs."
Amazon is betting that loyal customers who come to purchase the latest bestseller will gladly pick up some breakfast cereal, as well. Indeed, Ogden said that Amazon launched its grocery service because customers kept asking for it.
After the company began by selling health food snacks through its health and beauty store, ``we started to get this response from customers saying, it would be great if we could purchase groceries from Amazon.com, as well," Ogden said.
Amazon has taken a cue from successful warehouse retailers like Wal-Mart Stores Inc.'s Sam's Club. Nearly everything comes in bulk quantities.
You can't buy a single box of Tide laundry detergent, but you can order a bundle of two giant-sized cartons, enough to do 240 wash loads, for $48.69. Bounty paper towels come in 15-roll bundles for $17.99. There's even dog food: 12-packs of Del Monte Sausages for $21.89.
Any savings on bulk items would be eaten up by shipping costs, except that Amazon offers free shipping on orders over $25. But goods shipped that way can take a week or more to arrive, an unappealing option for many shoppers.
Amazon tackles this problem with another standard warehouse retail gimmick, a paid membership plan called Amazon Prime. Customers who pay $79 a year get free delivery within two days. Customers save on shipping costs if they buy lots of merchandise, while Amazon gets a steady stream of membership revenue and a supply of new customers with an incentive to make big purchases.
But I wanted to do some looking around before mentioning this. Finally had time today. After browsing around and figuring out unit prices and comparing, I can't see that shopping for groceries at Amazon would be much help at all.
But check it out and see what you think. Remember if you do make purchases from Amazon - and you can save money on things like Huggies and anything you would buy from Target, in addition to books and DVDs - please enter Amazon from the portal on my left sidebar to help support MommyLife.
Wish this could have been the better news I hoped to share.
Posted in Practical Info | Permalink
Comments
me too because we are a little too far north to have pea pod. bummer, especially since i go to giant. there is not much around here.
Posted by: janet | June 21, 2006 12:06 AM
Barbara,
What a great girl you are blessed with! Hey, Safeway.com delivers in the Pacific Northwest and they are great.
Have a happy morning! Check out the wacko Foldgers commercial.......http://youtube.com/watch?v=GQI2KlAurOg
Blessings,
Heidi
Posted by: Heidi in Wa | June 21, 2006 12:54 PM
