The Modern Way of Buying Groceries

                After learning about the benefits of home grocery delivery, I have concluded that in the near future, people will want to do more shopping online whether they are purchasing perishable or non-perishable foods.  People are looking to simplify their lives and if this is one step closer in doing so, then they might add groceries to their list of items being delivered. This is the logic behind Amazon, the largest online retailer today. Amazon’s biggest delivery items are books, clothing, and electronics. I personally have found how easy it is to order Christmas gifts online and never have to wait in line. I have learned that people are focused on convenience when it comes to shopping, which I believe plays a big part in today’s society.

                In general when you need to go grocery shopping, you need to get in your car, use fuel, shop through the aisles, wait in line to checkout, load the car, drive home, and unload the car.  If you do your shopping online, you turn a computer on, search the website, click the product, find a delivery time that works for you, and push send.  It is that easy. I believe people have adapted themselves with the internet and companies continue to make ordering online easier for the consumer. I have ordered non-perishables items online in the past and found that once you know what websites are most convenient to use, it is simple to order. I would have liked the opportunity to try grocery shopping online for a month and give you my opinion but unfortunately our town does not have this type of service yet. 

                One article I found interesting while doing my research was from Midsize Insider where author Bradford claimed that AmazonFresh has arranged to have its fresh items delivered by local food companies.  I believe if more of the larger market based stores attract the smaller ones in arranging these fresh food items to be delivered, it will be a win-win relationship for both types of companies.  I also found the article from Business Insider interesting bercause Edwards informs us that Amazon might be adding refrigeration to its distribution centers. I could not believe the size of the AmazonFresh warehouse which stored over 22,000 brands. 

                I found a recent article titled, “New E-Commerce Strategies Threaten UPS, FedEx” which was published in the HuffingtonPost. The author, Alistair Barr, informs us that, “in 2011, Amazon changed its fulfillment strategy and began building new distribution warehouses closer to large, heavily populated areas such as Los Angeles and San Francisco. Amazon.com Inc is building its distribution warehouses closer to customers to save millions of dollars in shipping costs.” Amazon sounds like it will be focusing on shipping costs to help the consumer when money is an issue.  Barr also claims that, “The world's largest online retailer is also increasingly using its own delivery trucks, cutting UPS and FedEx out of some parts of its fulfillment network.” This does not sound too good for UPS and FedEx because Amazon is cutting out the middle man. It will be worth watching how this unfolds as Amazon brings AmazonFresh into two more major cities.  

                I still have questions about the types of people that online grocery shopping could benefit from? The last time I was in downtown Chicago, I noticed an online grocery delivery service van, PeaPod. The delivery truck was parked outside an apartment building.  Maybe the customer did not have a car, they were elderly or they just liked the convenience of shopping for their groceries online. Also, I still want to compare price points and monthly or annual fees that are associated with this type of shopping.  Do people weigh out the savings when there is a membership fee involved when shopping for bulk item stores like Sam’s Club or Costco where there is no delivery?

                I believe people would be more health conscious when they pick and choose only the items they need instead of a display rack at a grocery store that screams “buy me”.  By not buying frivolous food items that you did not want in the first place and focus on the items that you really need, will save you money in the long run. As a mother, I want to make dinner for my family and not have to worry about what to make. With this in mind, I will wait for a delivery grocery service to come to my town and enjoy the convenience of this service.

Image of family eating dinner         Google

 

 

Work Cited:       

Bradford, Contel “Amazon Expanding Prime Service with Grocery Offerings” Midsize Insider (2013) Web. 10 July 2013. http://midsizeinsider.com/en-us/article/amazon-expanding-prime-service-with-groc

Allistair, Barr “New E-Commerce Strategies Threaten UPS, FedEx” Huffington Post (2013) Web. 16 Jul 2013. http://www.huffingtonpost.com/2013/07/14/e-commerce-ups-fedex-threat_n_3594324.html

 

Why Consumers Buy Groceries Online

           In my last post, I explored how grocery stores plan to store perishables until they reach your home. I decided I needed more information on why consumers would want to buy their groceries online. This led me to an article titled “More Consumers Buying Groceries Online” published on the web in Consumer Affairs. The author, Truman Lewis, a well known politically active reporter, found that online grocery appears to be catching on. He claims that the number one reason for grocery shopping online is convenience. Along with convenience, Lewis notes that “online shoppers say they’re also trying to save money, both by limiting purchases and more easily finding the best price for a given item.” The author goes on to say that “A new survey, commissioned by CouponCabin (a website that offers discounts for over 2,500 participating retailers), found that 15% of U.S. adults have bought groceries online and another 19% say they plan to do so.

           This makes me wonder what other reasons consumers would want to buy their groceries online?  Also, I question what other online grocery shopping surveys are out there that may have more creditability.

 

          After reading this article by Lewis, I found an article/report titled ”U.S. Grocery Shopper Trends 2012” published by Food  Marketing Institute (FMI). This company represents 1,500 food retailers and wholesalers from around the world. FMI has been tracking grocery shopping behavior since 1974 and has produced a study, Trends, that presents a snapshot of consumer trends at the current time.  The Institute claims that “This year, perhaps more so than at any time in the past 35 years, knowledgeable consumers are looking for value, quality and convenience, and are driving the industry to become more innovative and competitive in all ways”. In the survey (below), consisting of over 1650 shoppers with an in-depth exploration to online shopping, shows consumers buy groceries online for several reasons:

 

U.S. Grocery Shopper Trands 2012 Executive Summary by FMI





             The chart shows that the top three reasons that consumers buy online is the convenience of home shopping, lower prices, and the convenience of home delivery.  After analyzing the graph, convenience is important to consumers as one of the top three reasons. They enjoy being able to shop from home and have their groceries delivered to their home.   

          Questions that arise for me when reading this report involve what age group, sex, marital/ relationship status, household size, are taking this survey?  If the survey consisted of families and if so, how many children? Are the couples working 8-10 hour days or is there a stay-at-home mom in the family? I feel these issues are important when conducting a survey regarding the reason for people to shop for groceries online becuase of the types of situation that people are involved in.

 

           This report is similar to what Lewis said in his article that the number one reason consumers buy groceries online is for convenience. I believe people choose what is most convenient to them at their stage in life when they factor in their typical day. People are choosing to eat healthier, save money, and focus on environmental impacts.  

 

          While Lewis claims that consumers are trying to save money by focusing on the need and price of an item by shopping online, Trends claims that consumers purchasing products in 2013 have an awareness of the rising food prices due to weather related issues in 2012. I tend to think people will always try to save money and the internet has increased our ways of finding the best deal and they will not care as much about the inflation in groceries that will happen this year. 

           I believe saving time plays a major part in families who have children and are therefore pulled in every direction while their kids engage in extracurricular activities and still want to have a home-cooked meal. I find that my family is tired of deciding where to go out to dinner just because there is nothing at home to make or eat.

          As I continue my research, I will look at the price comparisions on shopping for groceries online and if the consumer feels if spending a bit more a week is worth it to them.

 

References cited:

Truman, Lewis ”More Consumers Buying groceries Online” Consumer Affairs.(2013) Web.14 Jul 2013. http://www.consumeraffairs.com/news/more-consumers-buying-groceries-online-021413.html

"U.S. Grocery Shopper Trends 2012 Executive Summary" FMI. (2013) Web. 14 Jul 2013. http://www.fmi.org/home

 

 

 

 

 



Fresh Fruits and Foods to Your Door

 

Amazon's new web grocery store will offer 22,000 brands
AmazonFresh Images
 

       In my last blog post, I explored AmazonFresh, a company that is expanding its grocery delivery to other cities besides Seattle.  Since then, I decided I needed more information about how the companies will store the perishables until they reach your doorstep.  This led me to an article titled “Amazon Is Working on a Plan to Deliver Your Groceries”, published on Business Insider website. Author, Jim Edwards informs us that ” Observers were tipped that Amazon might be making more moves in groceries when they observed the company adding refrigeration equipment to distribution centers outside the Seattle area."

 

       After reading this article in Business Insider, I found an article by Contel Bradford, which was published on IBM’s Midsize Insider website. This article title "Amazon Expanding Prime Service with Grocery Offerings" in which the author cites Anne Zybowski, vice president of retail insights at Kantar Retail and states “AmazonFresh has arranged to have its fresh items delivered by butcher shops, delis, fish markets and other local food companies. The internet retailer charges these businesses a commission on food item sales.” I think this is an excellent win-win relationship for local businesses and producers of foods and food products. Further, the local business will gain access to a much larger market base than they ever could have attracted without the involvement a larger marketer like AmazonFresh.

Fresh Vegetables
delivered from AmazonFresh
AmazonFresh images

        In the first article, Edwards pointed out that Amazon might be adding to refrigeration equipment to their distribution centers.  In the second article  Bradford points out that AmazonFresh has arranged local food companies to deliver your fresh items directly from them. He claims that AmazonFresh is looking to local businesses to supply their fresh foods. I  believe that AmazonFresh is still trying to work out which way is best to deliver fresh perishable items to your doorstep.

        As of July 2013, AmazonFresh delivers to Seattle and Los Angeles.  If you live in those areas, setting up an account with AmazonFresh is as easy as a click of a button. Just go to AmazonFresh website and type in your address to see if they deliver to your neighborhood, then you set up an account with them and you place your order. That's all there is to it! They even have a mobile application to order on. 

 

AmazonFresh sign-up page
AmazonFresh images

        

           For $299 a year (membership costs) you can have fresh food delivered to your doorstep any time any day of the week. In my next blog, I will find information on the overall costs of this service and will it be worth it in the long run. Is that a hefty membership cost or  does the fee offset the time spent doing other things?

 

Works cited:

Jim Edwards “Amazon is working on a plan to deliver your groceries” Business Insider (2013) Web. 26 May 2013. http://www.businessinsider.com/amazon-and-grocery-delivery-2013-5

Contel Bradford “Amazon Expanding Prime Service with Grocery Offerings” Midsize Insider (2013) Web. 10 July 2013. http://midsizeinsider.com/en-us/article/amazon-expanding-prime-service-with-groc

 

A New Way to Grocery Shop

            I recently poised a few questions in regards to the benefits of home grocery delivery. The article that sparked my interest in writing this blog was called, “Why Amazon Is Happy Breaking Even with Online Grocery”, published on Forbes Magazine website. Author Tom Ryan informs us that Amazon, an e-commerce company that sells and delivers consumer products to our doorstep nationwide, began an online grocery business called AmazonFresh.  The company has been in the online grocery business since 2007 serving only the Seattle market and will soon be expanding its grocery delivery to Los Angeles in June and to San Francisco in October. Ryan notes that Amazon feels that since there is already an existing market for groceries and if Amazon currently delivers consumer products to your doorstep, why not add groceries to the delivery list.

An Amazon Fresh truck in Seattle               Flickr, CC

            After reading this article by Tom Ryan, I wondered if this concept could actually work. Would people take advantage of this concept and do their grocery shopping online as they do with other types of shopping?

            I found another article on this topic by Maria Godoy, “Amazon’s Grocery Delivery: A Trojan Horse to Get in Your Door, which was published on the internet in The Salt. This author states that Amazon had years of testing the AmazonFresh concept. Godoy interviews Justin Bomberowitz, a senior analyst with RetailNet Group, and he states that, “The service is designed to deliver "ultimate convenience" and includes features like no minimum order, pre-dawn delivery (the most popular option) and the ability to choose the time when your food shows up.”

            After reading this article by Godoy, I realized that people could have the freedom of ordering the groceries online for the meals they intend to make for the week and have them delivered anytime they are home. It seems to be less hectic then figuring out where to go out to eat. Imagine having all the ingredients for the recipe you intend to make. Imagine always having something to cook for breakfast, lunch and dinner. The thought of taking your time and focusing on what you really need to eat instead of frivolous food that you do not need. Everything is well planned out.

            When I compare these two articles by Ryan and Godoy, I find that I still question the overall shopping experience and the freshness of the food being delivered. In my next blog, I will find information through market trends on the benefits of grocery shopping at a grocery store versus the benefits of ordering groceries online.  I will also look into how fresh food would be delivered to your doorstep.

Works Cited

Ryan, Tom “Why Amazon Is Happy Breaking Even With Online Grocery.” Forbes (2013) Web. 1 May 2013.

Godoy, Maria “Amazon’s Grocery Delivery: A Trojan Horse to Get in Your Door.” NPR The Salt (2013) Web.  5 June 2013

How Do You Put a Value On the Economic and Non-Economic Benefits of Home Grocery Delivery?

Everyone has to eat.  Everyone goes to the grocery store, local farmer's markets, or wholesale merchants to buy their food.  What if there was an easier way to buy your groceries through online grocery store?.  What if this concept made your life easier?  What if you had more time to focus on other things in your life such as your family?

I recently read an article about online grocery shopping and how this particular company would deliver your groceries right to your door step.  I was in disbelief and thought home grocery delivery was too good to be true. Then, I started thinking, would others feel the same way as I? 

This topic sparked my curiosity because I am always looking for something that can save me time and money. Being a mother of three teenage children, I am always in the kitchen preparing meals.  All three of my children are swimmers who constantly eat. Because they burn so many calories, I cannot keep up with having enough food in the house. 

With that being said, I thought about discussing the economic and non-economic benefits of grocery delivery for my blog. I have always thought that it would be convenient to have your groceries delivered to your home. I am interested in researching whether or not people would feel the same way about having their groceries on their front door step.

In the next few weeks, I will be focusing on finding sources and performing research to help me come up with the answers to the following questions through articles, market trends, and websites of home delivery grocery companies among other sources.  How do you put a value on the economics and non-economic benefits of this type of service? Are the perceived benefits of grocery delivery validated by real life experience?

 

 

First Try

Hi!
This is my first blog.