Back in 2008, BJ's Wholesale Club responded to competition from larger rivals Costco and Sam's Club by offering smaller-sized products that focused more on the needs of individuals rather than companies. While it did not catapult BJ's to the top of the warehouse club mountain, it did provide a definable point of difference from its competitors. Now, Amazon is looking to do something similar, albeit online, with its new Prime Pantry service.
In short, the service allows Amazon Prime members to order smaller sizes of products that previously were sold in bulk on the site. Prime members can now fill up a four-cubic-feet box with merchandise weighing up to 45 pounds. Orders will take between one and five days to arrive and come with a $5.99 delivery fee. Fresh foods are not included in the offer.
Amazon takes this step as a growing number of retailers are looking at same-day delivery of grocery items. The company's AmazonFresh program charges customers an annual fee of $299, which includes membership in Amazon Prime and free grocery deliveries on orders of $35 or more.
How likely is Amazon's Prime Pantry program to succeed?