Amazon simplifies its grocery proposition

Date : 12 January 2021

Rachel Sibson

Retail Analyst

Amazon has discontinued its Pantry delivery service in the US and India, as it looks to offer a clearer, simpler grocery proposition to customers.

Launched in 2014

Amazon Prime Pantry launched in the US in 2014, enabling Prime members to order products including non-perishable food, alcohol, personal care and household items for delivery. The aim of the service was to allow shoppers to stock up on everyday products, that are not typically shipped for free, and that could be sent in one parcel. Products previously available on Amazon Pantry have been transferred to Amazon’s main website.

It has also discontinued Amazon Pantry in India, following the expansion of the service to 300 cities across the country in June 2020.

The news comes after Amazon closed its Pantry service in Jun 2020 in the UK, Spain, and Italy to offer a clearer, simpler proposition to convert Prime members.

Strengthening the grocery proposition

Amazon is increasingly using grocery to attract and retain members. Closing Pantry allows Amazon to simplify its grocery proposition. This should also benefit its Amazon Fresh grocery delivery service, which the retailer is also using to enhance its offering to customers.

In October, Amazon announced that Prime members would be able to order from Amazon Fresh and Whole Foods Market stores for free in the US. Previously, shoppers were asked to pay $14.99/month to access the Amazon Fresh service. Amazon also launched free delivery for Amazon Fresh orders in the UK in July 2020. Previously, Amazon Fresh charged a monthly add-on fee of £3.99, or £2.99 per delivery, (in addition to £79 for an annual Amazon Prime membership).  Now, shoppers using Amazon Fresh, spending over £40, and agreeing to receive their groceries within a two-hour window, no longer have to pay for delivery.

Closing Pantry service also allows Amazon to reduce fulfilment costs. This is because Pantry has its own, separate supply chain. Now the retailer can consolidate Pantry type products with others ordered on Amazon.com.

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