Most of the news out of Amazon.com Inc. (NASDAQ: AMZN) this week focused on its new Fire TV, which puts in squarely into the streaming video market. More quietly, the e-commerce behemoth started a new grocery delivery system, which puts it in competition with the nation’s largest supermarket chains, as well has tens of thousands of local groceries.
Amazon.com Inc launched a new product named Amazon Dash on Friday that allows the user to add groceries and household goods to their shopping lists using the company’s AmazonFresh service.
The news service reports that Dash will only be available in parts of the West Coast for now.
However, Amazon rarely stays small when it has a large opportunity. The company claims that AmazonFresh offers more than 500,000 items, including beauty products and household cleaning products.
Just as Amazon challenged Wal-Mart Stores Inc. (NYSE: WMT) in traditional retail — with a great deal of success — it is now up against national firms like Kroger Co. (NYSE: KR). Kroger had revenue of almost $97 billion in its most recent fiscal year. This compares to Amazon’s $74 billion. Kroger and its peers have been challenged also by the grocery business that Walmart has built as a means to improve stagnant revenue.
One of the worries about Amazon’s future is how many business it can enter before its expertise — so valuable in traditional e-commerce — is stretched too thin. So far, founder Jeff Bezos has proven that Amazon can continue to grow at rates that are often above 20%. He has also shown that he can virtually create products for new markets, the most obvious of which are the e-book and e-reader. Groceries, however, are not consumer electronics. And the model that makes consumer electronics e-commerce successful may bear little in common with the sale of salads and soap. The plans for Amazon Dash are aggressive enough that the company should have that answer soon.
Amazon is also working on upping sales through a series of Easter merchandise offerings
The Average American Is Losing Momentum on Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%* today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying nearly 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.