"Because we only carry products when we can
offer great prices and free shipping, we don't carry
everything (yet!)," the company said in a notice on its Web
site.
Seattle-based Amazon has seen sales growth slow amid
increased competition, and has invested heavily in
technology and content to draw in new customers and increase
loyalty.
Like many other product categories Amazon has added over the
years, groceries were quietly introduced to its Web site on
May 25 through a beta, or test, page that indicates the
company will evaluate the business before promoting it more
widely.
"We try and offer our customers one-destination shopping
where they can find everything they need, and groceries are
something our customers have been asking for," Amazon
spokeswoman Tracy Ogden said. "As with any of our stores, we
are always looking to increase our selection."
During the Internet boom of the late 1990s, investors poured
money in to a number of online grocery stores such as Webvan,
which once touted an ambitious plan to spend $1 billion on a
warehouse network but went bankrupt after the dot-com crash
of 2001.
Another grocer from that era, Peapod, survived and has
operations in nine states and Washington, D.C., while
privately held FreshDirect delivers to the New York City
area. Some traditional grocery chains such as Safeway also
allow customers in some markets to order groceries online.
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