Amazon Fresh’s is betting on its savings for consumers and superior quality of fruits and vegetables and planned purchases to command a significant market share, as the company expands its operations to 130 cities said a senior executive to businessline.

“The value proposition is not just speed but equally an extensive range of daily consumption products, incredible savings for consumers and superior quality of fruits and vegetables, delivered to customers in 2-4 hour slots. Regardless, Amazon is continuously improving the speed at which we deliver orders to customers,” said Srikant Sree Ram, Director, Amazon Fresh.

He added that technology plays a critical role at every stage of fresh supply chain, starting from collection centres where one buys directly from farmers to an end-to-end temperature-controlled supply chain.

All the fresh produce is sourced directly from farmers registered with Amazon sellers at the collection centre and after a thorough quality inspection, is dispatched to the processing centres, added Ram.

“We work with 10,000 farmers directly. We have a we have made a set of trained agronomist accessible to them. So farmers can actually reach out to these agronomists if for any questions they have on their crop.

Expansion

Currently, Amazon Fresh has over 15,000 products and is adding more more products to its marketplace.

In terms of category expansion, Amazon Fresh is also seeing beauty personal care and baby products doing well.

This year, Amazon Fresh witnessed demand for toothpastes, whiteners grown by 40% YoY, pulses, and yogurt at 30% and chocolates at 25%. While milk and juices are the fastest-growing categories growing more than 60% YoY in terms of a number of orders

“If I look at the last year and a half, there is definitely a change in consumer buying behaviour. They are going beyond your typical groceries. So, users are now looking for a holistic experience. Customers are seeking not only convenience but also a diverse range of products, including healthier alternatives and seasonal offerings.,” he noted.

The online grocery retail market is witnessing a rapid growth rate in the Indian metropolitans and other emerging smart cities. While semi-urban areas and emerging cities are expected to drive the next wave of value growth owing to the rapid rate of urbanization, rural demand is likely to continue to drive volume growth.

In the last 12 months, orders on Amazon Fresh have more than doubled from tier 2 and 3 cities.

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