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Financial Times: Amazon Ready to Deliver Groceries Nationwide

Written by George Anderson
When you read the description of the AmazonTote grocery service, it's hard not to wonder, what's the catch?

"AmazonTote is a free weekly delivery service from Amazon.com. There are no subscriptions, minimum delivery sizes, or fees. Items delivered using AmazonTote will be brought to your doorstep in a reusable tote bag, free of charge."

According to the Financial Times, Amazon is planning to expand the Tote service "company wide" from its Seattle home market. While an exact date was not given, an announcement on the site that was later taken down said it would be "expanding soon." Amazon began testing AmazonTote last summer with the same trucks it uses with its pilot AmazonFresh program.

"Because of the frequency of grocery purchases ... you have an opportunity to be in front of the customer at least once a week," Rich Tarrant, CEO of MyWebGrocer, told the Financial Times. "By tying in that frequency with the ability to get everything else you want, you literally have created the virtual Walmart."

Fiona Dias, executive vice president for GSI Commerce, told The Wall Street Journal, that regularly weekly deliveries could potentially lead Amazon customers to add other non-grocery items to their basket, as well.

"What they want to have is a truck come to your house once a week to deliver whatever you want in it," Ms. Dias told the Journal. "You never have to leave your house to shop again."

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