Amazon and Life supermarket are partnering to sell fresh foods online in parts of Tokyo starting later this year.
Access to a greater range of products
Under the new partnership, Life will supply a range of products to members of Amazon Japan’s Prime Now service. While Amazon Japan will process payments and handle delivery.
The tie-up means that Amazon will be able to quickly offer a greater range, while Life hopes to reach a younger customer demographic and people who live in areas without its stores.
Amazon has partnered with bricks-and-mortar retailers in other markets, e.g. Morrisons (UK), Casino (France), Dia (Spain). We expect a similar approach in Australia and India in the future.
More about Amazon Japan
In April 2017, Amazon Fresh food service was launched, delivering orders to Amazon Prime members in Tokyo as fast as four hours. The platform carries 17,000 fresh produce items, as well as household goods, pet and personal care.
However, shopper trust and brand perception remain challenges for the retailer. Its latest agreement with Life should help boost its credibility, as it looks to cater to growing demand from the elderly and those who have difficulty getting to physical stores, which will also include busy professionals.
More about Life supermarket
Life supermarket already operates an online service giving customers access to approximately 6,000 products. However, its delivery area only covers around half of the Tokyo metropolitan region. Profitability also remains a challenge due to high operating costs. The partnership with Amazon will make the last mile shorter and therefore more efficient.
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