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Amazon’s Trojan horse

Nice little article in Fast Company regarding Amazon’s push into grocery. Some things that caught my eye:

  • Amazon has 209MM active customers (wow), and 10MM of these are Amazon Prime members
  • The average prime member spends approximately 2.5x what a regular member spends (translates to $700 per year per member)
  • Amazon is now the world’s most trusted company (based on a poll)
  • Amazon has 89 DCs (globally), with most of them strategically placed near high population areas
  • Amazon Fresh is expanding to 20 geographic areas

While on the surface, Amazon Fresh is about grocery, the learning from doing local delivery plus the locations of the DCs will enable them to figure out how to get the “last mile” right. Traditional retailers should be worried. Very worried.

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