menu

Amazon’s Digital Warehouse Takes On Costco By Selling Bulk Goods

Amazon’s Digital Warehouse Takes On Costco By Selling Bulk Goods
Retail

Prime members will be able to purchase products from Pantry next year.

Serena Chu
  • 13 december 2013

In competition with brick-and-mortar stores like Costco and Sam’s Club, Amazon is looking to expand its business into the giant consumer package goods market. The e-retailer giant will introduce a new business called Pantry in 2014, where Prime members can purchase bulk-sized goods and have it shipped to their home.

For each purchase, shoppers can stuff as many items into a set sized box, which has a specific weight limit. As long as the products fit and stay within the maximum weight limit, Amazon will only charge a small fee for shipping. In the initial service offering, Amazon will have about 2,000 of the most common household brands ready for shipment. Whether it is cleaning supplies, kitchen necessities, or food and beverage, Pantry will meet all consumer requests.

The current consumer packaged goods, or CPG, market brings in about $850 billion a year, a huge gold mine for Amazon to tap into, if it can work out some of the problems inherent in shipping items with larger proportions. Amazon has all the right pieces of the puzzle to make Pantry work: a strong relationship with Prime users, its established infrastructure and its aggressively growing online channel.

According to an insider source, Amazon has already designated at least four fulfillment centers to meet Pantry orders. With a potential $222 billion revenue in the CPG market underway, 2014 is looking to be another successful year for Amazon.

Amazon Pantry

Source: USA Today

Retail
Trending

Japanese Face Wash Creates A Perfect Rose Every Time

Arts & Culture
Mobile Yesterday

Get A Better Idea Of How You Are Wasting Your Time

The TouchTime app is trying to revolutionize personal task management by providing detailed insight on how to be more efficient

Culture Yesterday

London Telephone Box Repurposed As A Tiny Mobile Repair Shop

Tools and supplies to replace broken screens or damage are neatly stowed away in these micro-workrooms

Trending

Get PSFK's Latest Report: Future of Work

See All
Design Yesterday

Conceptual Sportswear Created Out Of Futuristic Condom Material

A Dutch fashion designer is experimenting with new methods and fabrics to make high performance clothing

Fashion Yesterday

Fashionable Tassel Will Ensure You Never Lose Your Valuables Again

The device is fashion meets connected tech, that will help you keep track of your belongings at all times

Syndicated Yesterday

Would You Wear Wool Shoes To Save The Environment?

As demand for wool shoes grows, a number of US footwear brands are heading directly to the source: the sheep pastures of New Zealand

Sustainability Yesterday

Self-Healing Material Is Fashioned Out Of Squid Teeth

Penn State researchers have devised a new textile that uses organic proteins

Arts & Culture Yesterday

Search Engine Turns Your Own Drawings Into Photos

This image-matching software accepts hand-made sketches instead of keywords

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

PSFK Op-Ed august 24, 2016

Why Building Better Offices Is The Key To Employee Engagement

Interaction Designer and Audio-visual Technologist at ESI Design illustrates the value in creating environments filled with surprise and delight

PSFK Labs august 25, 2016

PSFK’s Workplace Vision: How The Nurturing Of Seeds Will Come To Define The Onboarding Process

Our Future of Work vision is a service that allows companies to assemble and deliver welcome packets that are uniquely focused on the concept of growth

Arts & Culture Yesterday

Illustrator Interprets The Experiences Of Blind Travelers

Artist Alby Letoy creates drawings of poignant travel memories for the visually impaired

Advertising Yesterday

Clickbait Titles Used For The Good Of Charity

An agency devised an unlikely campaign that uses clickbait as a positive force to drive awareness to nonprofit initiatives

Advertising Yesterday

The Best In Eye-Catching Olympics Campaigns

PSFK rounds out the Rio Games with our picks for the best advertising moments off the field

Work Yesterday

Editorial Roundtable: The Arrival Of The People-First Workplace

Managed By Q, Soma, Workbar, Primary and thinkPARALLAX enumerate the reasons why companies need an employee-embracing workforce in order to exist

Arts & Culture Yesterday

Transforming Light Waves Into A New Art Form

An artist uses glass treated with layers of metallic coatings to create a unique installation called lightpaintings

INSIGHTS COVERAGE

Rio Olympics
Innovation Coverage From The Rio Games
READ NOW

Design Yesterday

This Windbreaker Lets You Explore The Outdoors While Charging Your Phone

The apparel includes solar panels that allow the wearer to stay connected through the power of renewable energy

Asia Yesterday

The Goal Of This Game Is To Not Get Laid Off From Your Job

A hit mobile app has you working really, really hard to not get fired as you climb the corporate ladder

Advertising Yesterday

Movie Critic Bot Guides Viewers Through Festival Offerings

The Toronto International Film Festival has created a Facebook Messenger chatbot to help attendants curate their schedule

No search results found.