While online retailing keeps growing its revenues, online grocery appears to be one of the least successful spheres of online shopping business (Ramus and Nielsen 335). Several companies have managed to achieve considerable success in online grocery business despite numerous challenges it presents. AmazonFresh is one of the examples of organizing a profitable online grocery business. However, it remains a local experiment in Seattle (Martinez par. 5), as certain challenges put a threat to the success of the expansion of the company. The analysis of customers’ perception of problems and needs related to online grocery experience helps to suggest potential solutions to existing problems in the online grocery business. Such solutions are able to provide the sustainability of AmazonFresh.
The interviews were conducted to find out which attitudes to online grocery prevail among consumers and what they define as the main problems of such form of shopping. The analysis of the interviews reveals that most consumers share the same views on online groceries while experience in online shopping of other products appears to be the factor directly influencing the disposition to use online groceries. According to the results of the interviews, the main problems of online groceries include the absence of possibility to check the quality of products personally, worries about the freshness of products, high prices for delivery, and absence of recreational or entertaining aspect related to conventional shopping. The consumers demonstrate high interest in online grocery shopping as it is considered a convenient and time-saving activity. However, lack of experience lowers their willingness to change the usual way of shopping. Some factors promote the willingness of customers to use online groceries. Such factors include the positive experience of shopping other categories of products, good feedbacks received from other consumers, low delivery fares, and quickness of delivery.
The discussed findings received by analyzing the results of the interviews might be of interest to online grocers, as they show which aspects of online grocery shopping should be eliminated or improved. The results of the interviews apply to the challenges faced by AmazonFresh. The relation between previous experience in online shopping and positive attitude to online groceries is supported by the study conducted by Hansen (135). Therefore, AmazonFresh can promote the interest in its services by providing proper advertising at websites used for shopping other categories of products. McDonald et al. suggest a switch to the yearly delivery fee as an effective way of attracting more customers to AmazonFresh (9).
Such method addresses the problem of high delivery prices identified through the interviews. Neighborhood effect is considered an influential factor that promotes trust to the online grocery (Bell and Song 364). Therefore, AmazonFresh should put much effort in promoting the positive feedback on its services shared by the consumers during social interactions with other people. In such way, the company can boost its popularity as positive feedbacks were identified as important factors for raising the interest to shop grocery online. Ensuring the quickness of delivery also plays an important role in attracting new customers. Therefore, by advertising and ensuring that the purchase process is quick for a first-time buyer, the company can “increase customer acquisition” (Wilson-Jeanselme and Reynolds 538).
Current in-store experience appears to be successful due to its recreational aspect and the willingness of customers to be able to see and touch the products they buy personally. Online grocery experience has positive sides related to the advantages of pricing policy and convenience while lacking interpersonal interactions and entertaining factors. Current in-store experience significantly prevails over online grocery experience. That is why numerous online groceries have failed to support their sustainability and left the market.
The analysis of the findings based on the results of the interviews helps to suggest solutions to potential problems related to the expansion of AmazonFresh.
Works Cited
Bell, David, and Sangyoung Song. “Neighborhood Effects and Trial on the Internet: Evidence from Online Grocery Retailing.” Quantitative Marketing and Economics 5.4 (2007): 361-400. Print.
Hansen, Torben. “Consumer Values, the Theory of Planned Behavior and Online Grocery Shopping.” International Journal of Consumer Studies 32 (2008): 128-137. Print.
Martinez, Amy. AmazonFresh Set to Expand? 2013. Web.
McDonald, Rory, Clayton Christensen, Robin Yang, and Ty Hollingsworth. AmazonFresh: Rekindling the Online Grocery Market. 2014. Web.
Ramus, Kim, and Niels Asger Nielsen. “Online Grocery Retailing: What Do Consumers Think?” Internet Research 15.3 (2005): 335-352. Print.
Wilson-Jeanselme, Muriel, and Jonathan Reynolds. “Understanding Shoppers’ Expectations of Online Grocery Retailing.” International Journal of Retail & Distribution Management 34.7 (2006): 529-540. Print.