Amazon Starts to sell fresh produce online in Japan
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Amazon Japan is partnering with local supermarket operator Life Corp to sell fresh foods online.
The project will commence in parts of Tokyo later this year and provide a range of produce to Amazon’s Prime Now subscribers in Japan, offering order times as prompt as two hours for delivery. It is the first time the internet giant’s Japanese unit has partnered with a supermarket chain.
Amazon Japan will handle all deliveries and process payments under the new venture, which targets those who face challenges leaving home to go shopping, such as the elderly or busy working professionals. The firm is hoping to use the service to meet a broader demographic for its Prime Now subscriptions.
The arrangement is an opportunity for Life to extend its current online reach, which currently covers just over half of the Tokyo metropolitan zone. Profitability remains a limiting factor for supermarkets investing in online order infrastructure in Japan.
Questions & Answers
Q.Which specific Amazon service will offer this new fresh produce delivery?
Which specific Amazon service will offer this new fresh produce delivery?
The fresh produce will be available through Amazon's Prime Now service for subscribers in Japan. This new venture aims to meet a broader demographic for these subscriptions. Customers can expect delivery as prompt as two hours.
Q.What is Amazon Japan's role in the operational aspects of this new partnership?
What is Amazon Japan's role in the operational aspects of this new partnership?
Amazon Japan will be responsible for handling all deliveries of the fresh produce. Also, the company will process all payments made under this new online sales venture. This marks their first supermarket partnership in Japan.
Q.What is Life Corp's motivation for entering into this agreement with Amazon?
What is Life Corp's motivation for entering into this agreement with Amazon?
Life Corp sees this partnership as an opportunity to expand its existing online reach. Currently, their own online services cover just over half of the Tokyo metropolitan zone. Profitability has been a limiting factor for online investment.
Q.Who are the primary target customers for this new fresh food delivery service?
Who are the primary target customers for this new fresh food delivery service?
The service specifically targets customers who face difficulties leaving home for shopping. This includes the elderly, who may have mobility challenges, and busy working professionals with limited free time for grocery trips.