Amazon to sell food

Amazon.com has started selling groceries to help boost its sales, as it faces stiffer competition in the online books, films and music market.

Amazon.com has started selling groceries to help boost its sales, as it faces stiffer competition in the online books, films and music market.

The food service is limited to non-perishable goods, such as cereal, pasta and canned soup, meaning Amazon can use a more flexible supply chain to store and shift the products.

The food business at Amazon has only just emerged from a beta trial and has not so far been heavily promoted by Amazon.

Amazon will first evaluate the early performance of its food sales and distribution system before deciding whether to expand it with the help of a heavy marketing drive.

During the early dotcom era a number of food-based online businesses sprang up, but most of the larger ones eventually went bust as a result of low margins or poor overall sales.

Read more on E-commerce technology

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