Innovation That Matters

Books, DVDs and... smoked salmon?

Retail

Feel like having fresh tuna with your new Nigela cookbook? Good news: Amazon.com is adding a gourmet food store to its online warehouse.

Feel like having some chocolates with your new Yo-Yo Ma CD, or some fresh tuna with your new Nigela cookbook? Amazon is going to make life easier for you, as the company is working on adding a gourmet food store to its ever expanding offerings this summer. Some of the food manufacturers and retailers that supposedly have agreed to participate are Seattle Chocolate Co, SeaBear (smoked and frozen salmon), and Chukar Cherry Co (chocolate-covered cherries and fruit toppings). Taking the same approach as with its apparel & accessories store, Amazon won’t handle the actual fulfillment, but will act as a storefront and handling agent, receiving commissions from participating companies.

Opportunities

Jeff Bezos is still delivering on his promise that Amazon.com will be the one place people can come to find and discover anything they might want to buy online. Witness Amazon Japan recently adding an electronics store, and Amazon Canada unveiling software and computer & video games stores. If you’re in the gourmet food business, this may be an interesting new online distribution channel, especially as buying food online still requires a lot of trust from consumers, who may worry about quality and freshness. If you’re in any other B2C sector, continue to keep an eye on Amazon and other big players (eBay!) who are consolidating ‘online sector destinations’ faster than you can upgrade your own website.

Website: www.amazon.com