It’s no secret Amazon has been taking over the online marketplace and changing the way people shop. However, they’ve decided to expand and you may be surprised at what they’re taking on next. Amazon recently announced they will sell fresh milk online.
Amazon’s “Got Milk”
Amazon recently announced a new promotion. The online marketplace is expanding their selection of fresh dairy products for online sales.
TJI Research reports Amazon Fresh is adding private label dairy and beverage offerings under their Happy Belly brand, including milk, half-and-half, and lactose-free milk.
Amazon Fresh is the company’s grocery delivery service. It services metro communities such as Chicago, New York and Seattle.
The Happy Belly brand consists of several types of dairy products. Those products include various kinds of lactose-free milk (1%, 2%, whole, fat free), regular milk, half and half, and whipping cream.
“If you like Lactaid, we invite you to try Happy Belly,” reads a description on a product page.
Prices are comparable the Lactaid brand. Currently, a half gallon of Happy Belly 2% reduced fat milk is $3.29. Comparatively, a half gallon of the comparable Lactaid product is $3.88 at Walmart.
However, there is a catch. The availability of Happy Belly products is limited.
You can order them in some markets through Prime Now, Amazon’s on-demand delivery service, or buy them at an Amazon Go store, Amazon’s chain of automated convenience stores.
Additionally, you can purchase Happy Belly products by subscribing to Amazon Fresh. It can be purchased for $14.99 on top of a regular Prime membership.
This new campaign from Amazon appears to be fueled by the company’s desire to attract new customers to Amazon Fresh. Typically, there is a button for customers to purchase products from the website. Instead, Happy Belly products feature a green button to “Try Prime Fresh,” in place of the normal buy button. This leads to a page where users can sign up for a free trial of Amazon Fresh.
Good for Amazon, What About Farmers?
Grocery delivery is a perilous line of business because the margins are so thin. The typical grocery keeps just $1 to $3 of every $100 that shoppers spend.
Therefore, money is not made by customers ordering just once. Instead, profits are seen when customers order groceries many times over a month or year. The incorporation of dairy products into Amazon’s grocery service could be a good business move.
In most households, dairy products, like milk, are a staple. This means shoppers are more likely to order from your site if they can buy those products there, along with everything else. Therefore, Amazon may have tapped into a new customer pool.
The question remaining is, how will this impact dairy farmers? Overall, this could be a good move for dairy farmers as well. This new promotion has the opportunity to increase demand for dairy products. As many know far too well, this is something the industry desperately needs.
As online grocery shopping becomes increasingly popular, Amazon’s push to sell dairy products could benefit farmers. Amazon’s sale of dairy products offers a more convenient option for purchasing dairy products. As a result, increases in sales could be a potential benefit.
Furthermore, when one company begins a trend others are usually quick to follow. This could lead to more avenues for dairy farmers to market milk.
Amazon announced the sale of fresh milk and other dairy products through Amazon Fresh. The brand is called Happy Belly and encompasses various kinds of dairy products. Though this idea looks to be a good move for Amazon, will it be the same for farmers? This promotion has the potential to increase demand for dairy products. However, the results are still yet to be seen.