Taking Sides: Commitment to ecommerce

Taking Sides: Commitment to ecommerce

Q: Should retailers and manufacturers deepen their commitment to ecommerce? Amazon has broadened the scope of the products it sells. The online retailer now offers paper towels and other staples and is expanding its AmazonFresh grocery delivery service. It reportedly has even set up shop inside the warehouses of several large consumer packaged goods suppliers to cut back on costs and shipping times. As Amazon expands its footprint in the CPG business, more and more food retailers and their manufacturer partners are considering getting more involved in ecommerce.

Don Stuart, managing partner, Cadent Consulting

The headlines are arresting: “Amazon drives double-digit holiday growth while in-store trips decline.” But is this really affecting food retailers and manufacturers?

Amazon has changed the world of retailing, but its focus has been on: 1. digital media (books, music, video), 2. large ring/high importance/low frequency items, 3. select, routine non-perishable items. In fact, only about 1.5% of CPG sal

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