In a bid to strengthen e-commerce presence and disrupt the retail sector further in the United States, Amazon AMZN has rolled out a robust delivery service, AmazonFresh, in Las Vegas.
Notably, the service enables Prime members to enjoy delivery of daily essential goods and grocery items ranging from meats to fresh produce within an hour or two. This reduction of time holds immense significance in today’s fast-paced world.
Further, AmazonFresh will allow shoppers to combine their grocery orders with Amazon bestsellers such as Amazon devices, home & kitchen, toys, health and personal care, and electronics and get them delivered at their doorsteps at an ultrafast speed.
The e-commerce giant with its latest service aims at providing comfort and convenience to the Prime members residing in Las Vegas. AmazonFresh is available at $14.99 per month to Prime members.
Moreover, AmazonFresh is likely to aid the company in attracting customers to its platform which in turn will boost the Prime adoption rate.
Strengthening Delivery Services
Amazon’s strong focus toward enhancement of its quick delivery services remains a key catalyst.
Apart from the latest initiative, the company recently introduced its two-hour delivery service of natural and organic products such as meat and seafood, fresh produce and staples from Whole Foods Market to additional cities of the United States namely Lexington, Little Rock, Charlottesville, Asheville, Columbia, Manchester, Savannah, Naples and Mobile.
The move will enable Prime grocery shoppers at Whole Foods stores in the above-mentioned cities to avail the company’s fast delivery and pickup service via Prime Now.
At present, the service delivers groceries across 90 U.S. metros.
Further, the company revealed that its free one-day shipping service, Prime Free One Day, service now covers over 10 million products under categories such as beauty products, baby products, books, daily necessities and devices across the United States.
This is in sync with its plans to gradually substitute two-day delivery with one-day delivery service.
All these above-mentioned endeavors are expected to bolster the company’s presence in the U.S. e-commerce and retail space further.
Prime: A Key Catalyst
Amazon’s strong focus toward advancement of Prime services is acting as a tailwind. The company’s Prime enabled grocery delivery and pick-up services are bolstering its footprint in the grocery retail space.
Further, expanding movie and video content portfolio on Prime Video is another major positive which helps the company in attracting shoppers to join Prime program.
Moreover, Prime benefits which include strong loyalty system, customer friendly offers, robust same-day and two-hour delivery services remains the key in attracting shoppers to its e-commerce platform and physical stores such as Whole Foods Market and Amazon 4-Star.
We believe these Prime endeavors are likely to continue aiding Amazon’s dominance in the e-commerce space.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stock in the broader technology sector that can be considered is Rosetta Stone RST, PayPal Holdings, Inc. PYPL and Nuance Communications, Inc. NUAN. While Rosetta Stone sports a Zacks Rank #1 (Strong Buy), PayPal and Nuance Communications carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Rosetta Stone, PayPal and Nuance Communications is pegged at 12.5%, 17.91% and 5%, respectively.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Nuance Communications, Inc. (NUAN) : Free Stock Analysis Report Rosetta Stone (RST) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research