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

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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.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

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

  1. Nikhil says:

    This has potential if they do it right. Check out fresh direct in New York. A lot of people use it, almost too many.

  2. maddy says:

    Rumors are that Amazon fresh has been keeping its costs low and does not intend to grow early.

    Maddy

  3. maddy says:

    Rumors are that Amazon fresh has been keeping its costs low and does not intend to grow early.

    Maddy

  4. Doolsey says:

    Waaayyyy more people were on dialup back then. It wasn't feasible.

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