BERLIN DELIVERIES

Amazon Gives Hope to Brick and Mortar Retailers

Amazon Fresh-Fahrzeug
Amazon.de is partnering with Berlin food merchants to make quick deliveries through Prime Now. Picture source: dpa

The beginning of a new partnership was announced in Berlin on Wednesday. Amazon is now working with grocers Basic and Kochhaus through its subscription service Prime Now. The two merchants have their own pages on the Amazon.de platform and when a Berliner buys something they can have it delivered directly from the shops in their neighborhood.

It is a win-win situation. Amazon has the opportunity to offer Prime members an even larger range of new services, and the brick-and-mortar retailers also have more opportunities.

“With Prime Now, we are not only reaching more customers than before, but we also offer special delivery options,” said Stephan Paulke, CEO of the organic supermarket chain Basic.

 

“The fast delivery with Prime Now is a great option for our company to reach other customers quickly and to increase our popularity. ”

Ramin Goo, Managing Director of Kochhaus

Members of Prime Now can order goods through the app for free delivery within a two-hour window or they can request a one-hour delivery or less for €6.99. A membership costs €69 a year ($73.26). The available delivery hours of operation vary depending on the retailer: Basic offers deliveries from 8 a.m. to midnight, while Kochhaus operates its deliveries from 10 a.m. until 10 p.m. The minimum order through Prime Now for Basic and Kochhaus is €20.

Kochhaus places great hopes on the partnership with Amazon. “The fast delivery with Prime Now is a great option for our company to reach other customers quickly and to increase our popularity,” said Ramin Goo, managing director of Kochhaus. In addition to deli products, the company offers its customers ready-made ingredients for specific recipes, such as herbal pilaf with harissa turkey breast and lemon yogurt.

Amazon is not the first online retailer to wade into the brick-and-mortar competition. Zalando is also already testing partnerships with stores, as Handelsblatt reported in October last year. With its “integrated commerce” program, the mail-order company wants to see how online and offline shopping can work together in the future, giving customers the option to get an order from a local shoe store if it has the desired pair of shoes in stock.

It remains to be seen whether these forms of partnership are an opportunity or a threat to physical retailers. Through its service, Amazon has moved even further into direct competition with supermarkets, which also independently offer delivery services. Cooperation with the online giant could be especially attractive for smaller shops without the means, however.

Florian Kolf leads a team of reporters covering the retail, consumer goods, luxury and fashion markets. To contact the author: kolf@handelsblatt.com

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