Amazon announced today that customers will be able to receive Prime Now delivery on groceries from Whole Foods Market in Fort Lauderdale, Miami, Palm Beach, Long Island, and “select areas in New York City, beginning with lower Manhattan and Brooklyn.” In addition to groceries, shoppers will be able to browse “everyday staples and other locally sourced items” when shopping via Prime Now. According to Amazon, Prime Now orders can be delivered in as little as an hour.
Current list of Prime Now cities, Amazon.com
Private Labels and 365
To date, the Amazon-Whole Foods acquisition has been very successful in generating hype and dominating headlines. It raised the value of Whole Foods on Wall Street overnight while competitors nosedived. Since early this year, we’ve seen a handful of collaborative moves between both companies, including aggressively integrating Amazon Prime and Whole Foods.
My local Whole Foods Market promoting Prime Member discounts
As this shift happens, a key brand that players in CPG and Health categories should be paying attention to is 365 Everyday Value, Whole Foods’ “store brand” private label line of consumable products. 365’s expansion out of brick-and-mortar, by way of the Amazon platform, is expected to put pressure on competitors, especially those without a digital playbook.
For our recommendations to CPG brands regarding private label products, read What to Consider as Amazon Grows the Whole Foods 365 Brand Online.
Amazon is driving consumer expectations
The shopping landscape has changed dramatically in a short period of time. Customers went from circling photos in a catalog and receiving 14-day shipping with just a handful of options — which was perfectly acceptable at the time — to getting free 2-day shipping on an endless selection of products at competitive price points. Amazon is further pushing the envelope by introducing 2-hour (or, “in as little as an hour”) shipping on grocery orders. As the retail giant continues to innovate to satisfy their “divinely discontent” customer base, consumer expectations will only continue to climb — and we expect to see shorter and shorter delivery times on a growing number of product offerings as we move into the future.