Prime Now, an extension of Amazon Prime has been expanding rapidly over the past year in several markets around the globe. The difference between other online shopping services provided by Amazon (AMZN 227.5 -1.5 -0.7%) is that Prime Now has a two-hour delivery which is free of charge to Prime Now members with delivery available seven days a week from morning to late evening.
Amazon claims to provide fast delivery on “tens of thousands of items,” so we decided to see how many products were available on Prime Now for its 80 million Amazon Prime members who spend an average of $1,300 a year with Amazon.
As on July 25th, 2017, Amazon Prime Now sells a total of 938,764 products with an average of 35,000 products across 27 categories!
Prime Now’s Top 10 Categories
The “Grocery & Gourmet Food” category accounts for more than one-fourth of the total products available on sale at Amazon Prime Now. Since Prime Now sells products within 2 hours, everybody wants a quick and easy way to get daily essentials and household items through their mobile app and now with Amazon’s Alexa personal voice assistant.
Followed by Grocery items are the categories “Health, Household and Beauty Care” and “Beauty and Personal Care.”
These categories fit when we expect customers to order and get items delivered quickly.
Location vs. Number of Products
With the Amazon’s headquarters situated in Seattle, it wasn’t a surprise to see that it has the highest count of products with a total of 58,500 products up for sale.
Dallas has the second largest product count with a sum of 46,900 products on sale.
Amazon Prime Now provides delivery across the 32 cities, and the 15 cities with the highest product count are shown below:
Locations vs. Number of Products (By Category)
Grocery and Household items dominate throughout each city as day to day items are what customers need the most. With the popularity of same-day delivery increasing, Prime Now will soon reach out to all the main cities throughout the U.S.
Local Stores and Amazon Prime Now
Local stores are not willing to take the risk and fall behind due to the online market and now allow Amazon to sell their products through Prime Now.
Stores such as – Sprouts Farmers Market (SFM 147.8 -1.7 -1.2%), Bartell Drugs, Fresh Thyme, etc., are a few stores that sell their goods across different locations.
Here is a look at the number of products in cities where local stores are available. Amazon and the supermarket Sprouts is dominant among most cities. Seattle has the highest number of stores.
Selling fresh food is different from buying non-perishables and electronics, which is why online retail sites are not a significant threat to brick and mortar stores. Grocery items are purchased daily, and for a program like Prime Now, loyalty and pricing are major concerns in the grocery category. Amazon acquired Whole Foods, a high-end grocery with top quality products, which could create a better foothold in online grocery, an area which has been a slow catch with consumers.
More than half of the products sold on Prime Now is by Amazon. However, Sprouts Farmers Market, (SFM) a Phoenix AZ based and fast expanding supermarket that mainly sells organic products, has the second largest count of goods (88,556 items) sold across six cities.
Map of Number of Products across Major Cities in U.S.
Amazon does sell its products across all 32 cities, with a majority along the east and west coast.
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