Instead of stocking the shelves and maintaining them now you place a pallet in the pick line and have an order picked once. Warehouse space is typically cheaper. A warehouse doesn't need to be built out to look nice, just fictional.
Your advertising, shifts and is honed so less is hopefully spent. You also get to tap amazon's logistic and ordering knowledge so less waste and spoilage.
Your order pickers can grab all the items before they go. Hell they could build in specials for when a supply has been sitting but still good.
You don't have to have people rounding up carts, watching automated checkouts, etc.
The margins aren't as great as other goods but if you cut the costs and match local prices you can still make more. I also would guess that as time goes on their could be a grocery prime account where you get a once weekly delivery
Instead of stocking the shelves and maintaining them now you place a pallet in the pick line and have an order picked once. Warehouse space is typically cheaper. A warehouse doesn't need to be built out to look nice, just fictional.
Your advertising, shifts and is honed so less is hopefully spent. You also get to tap amazon's logistic and ordering knowledge so less waste and spoilage.
Your order pickers can grab all the items before they go. Hell they could build in specials for when a supply has been sitting but still good.
You don't have to have people rounding up carts, watching automated checkouts, etc.
The margins aren't as great as other goods but if you cut the costs and match local prices you can still make more. I also would guess that as time goes on their could be a grocery prime account where you get a once weekly delivery