How to Sell Groceries on Amazon?
Discover how to sell groceries on Amazon, Amazon Prime Pantry and AmazonFresh for Prime members, the steps to tap to this amazing market.
Grocery is among the fastest-growing ecommerce categories. eMarketer estimated last summer that online U.S. food-and-beverage retail sales would grow by roughly 25 percent last year, to roughly $28 billion.
Amazon and Walmart are competing for a dominant U.S. online grocery presence. Food-and-beverage manufacturers and resellers have options, in other words, as to which platform works best for their company.
Sell Groceries on Amazon
Amazon sells grocery items via three channels: Prime Pantry, AmazonFresh, and its third-party marketplace.
Prime Pantry and AmazonFresh are for Prime members only. Prime Pantry focuses on non-perishable goods or products with longer shelf lives, while AmazonFresh is for perishable items, including produce.
AmazonFresh customers pay only for the goods; there’s no additional fee to participate beyond the Prime membership. Prime Pantry customers, however, pay $4.99 per month plus the Prime fee plus the cost of the goods. AmazonFresh is available only in large metropolitan areas.
Amazon chooses suppliers for both programs from existing first-party sellers. Grocery brands cannot separately apply — it’s invitation-only.
Food and beverage brands can sell their products on Amazon’s marketplace without being a supplier to Prime Pantry or AmazonFresh. This allows brands to reach all shoppers, Prime members or not.
Amazon imposes unique restrictions on marketplace food suppliers, however, especially for perishable items. The items must otherwise meet state and federal US health requirements. This includes proper packaging, sealing, and labeling — with expiration dates.
Fulfillment by Amazon has additional restrictions, such as an independent, third-party validation that perishable products stay below the maximum chill level while in transit to an FBA center and throughout delivery.
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