Amazon.com Doesn’t Learn From WebVan, Launches Amazon Fresh

Amazon.com Inc. (NASDAQ:AMZN) claims that they have learned from their previous mistakes of selling fresh groceries online. However in the next 3 months, Amazon.com decided to launch a grocery business again but it will be limited to the Seattle area. The grocery service is called Amazon Fresh.

Amazon will be limiting the advertising for the service in order to keep the costs low. The company will also limit how fast they expand to other cities. Amazon Fresh launched as a test project a couple of years ago and currently operates in about 49 Seattle zip codes.

WebVan and PublixDirect shut down in 2001 and 2003 respectively. WebVan filed for bankruptcy and PublixDirect did not get much sales volume. “We have a lot of confidence in the long-term economics,” stated Amazon.com VP of Consumables Doug Herrington in an interview. “For a significant portion of the population, they’re going to find that the convenience, selection and pricing of online grocery shopping is going to be really compelling.” WebVan.com is currently owned by Amazon.com and it is used to sell food items too.

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