Online grocery shopping has never been a very popular categories of online retail, compared with books or music, for example. Research from WSL Strategic Retail shows that just 12% of US Internet users purchased groceries online in 2005, up from 8% in 2003."
Great insightful article, however I believe in the UK Tesco are leading the way in fresh goods and non perishables. "Sales for Tesco.com almost reached £1bn in 2005, with profits for the online store up by 55% to £56.2m.
Sales rose at Tesco.com by 32% for the year, now representing over 3% of its UK sales of £32.7bn. Tesco said it had 750,000 regular customers and 200,000 orders a week online. "
Now tesco is selling i-tunes as well. Where Tesco's lack is a robust, search friendly and navigable site. It's an example of a brand offering cheap merchandice. Saying that, I've abandoned my cart quite a few times mainly out of frustration of not finding vegetarian produce I knew they stocked. Still, I don't think Tesco and Amazon will team up as Tesco has so much to learn from Amazon I think the affiliate model (on books, electronics and esp Amazon's affiliate sellers) would be to hard for Amazon to swallow!


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