What's next for fresh produce in E-Commerce?

What's next for fresh produce in E-Commerce?



hey this is greg johnson director of media development for Blue Book I'm here with retail editor Pamela Raymond Schneider and we're going to talk about what's new with e-commerce we saw this week that among other pieces of news Walmart had an excellent third quarter you've taken a closer look at that right Pamela what do you what did you see from that report just from my brief overview there I noticed that ecommerce is really booming for Walmart they're getting close to and if not have surpassed Apple as the third largest e-commerce company out there of course Amazon's way up there as well and I just talked a little bit about ordering from Amazon and how Amazon is really going to affect what we're seeing in center store purchases from grocery retailers so I think it really underscores the importance of a strong fresh produce offering free for e-commerce so Greg have you ever ordered from e-commerce before for groceries at least well you know that I am NOT a millennial and actually I have not we have pretty good pretty good grocery stores very close to my house and as you can see I work in a basement I really do not mind leaving the house yeah you know I have actually even though I live in the land of sunshine and awesomeness i order from e-commerce occasionally I've done instacart a couple of times now that they finally deliver to my suburb in suburban neighborhood I'm still working on sprouts though they're like two miles out of my range I ordered from a chibis in-house delivery however this this week for the first time and I'm getting mixed reviews I ordered probably a hundred and thirty dollars worth of stuff and then I realized I was so I'm so happy that HUD did not jack up its prices because normally if you're ordering from instacart or something like that you're paying a premium I didn't notice until I got to the end of my huge order and realized that they're charging me a three percent online order fee man so I'm paying three percent more but they were dangling the free ordering for Wednesdays Thursdays and Fridays so I did get a get some of that so a three percent fee basically incentivizes you to get smaller orders as opposed to flat fee which after you get past the threshold you would want to have a bigger order that's weak yeah Walmart which also delivers in my neighborhood doesn't charge a percentage on top of the price that you're paying and all you've got to do is meet that $35 minimum order fee and they'll deliver right to my neighborhood so I'm a little upset and I'm actually just you know we all know that that thing that we do when you order online where you ordered just enough to get free shipping yeah my Heb future and you know it's the wait for turkey day right I ordered I have a never-ending supply of this so I ordered cream of mushroom soup and I got cream of asparagus soup have you ever had I did not know there was cream of asparagus soup but it sounds good for their green bean casserole yes I could do that actually I could be an innovator at the Thanksgiving table so I think there's still some kinks to be worked out here for e-commerce and grocery but the bottom line is that it's growing for everyone lucky is actually just announced that it's starting to deliver sprouts is looking to take its delivery nationwide through instacart so it's definitely something that will continue to grow yeah I agree it's not something that's going away and it's just a matter of they're all the retailer's figuring out the economies of scale and the way to do it profitably yep all right well thanks Pamela thanks for joining us for this analysis on e-commerce and a Happy Thanksgiving yes thanks

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