The integration of Whole Foods into Amazon’s ecosystem has begun
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The integration of Whole Foods into Amazon’s ecosystem has begun

Ecommerce giant Amazon’s most powerful feature is its incredibly sticky ecosystem. You subscribe to Prime for the free postage and quick delivery, which incentivises you to shop there even more – after all, free postage means the value of Prime is scaled to the number of goods you order – and before long you’re watching shows on Amazon Video, listening to Amazon Music through your headphones, and maybe even gaming on Twitch. Now, Whole Foods is becoming a part of that ecosystem.

Amazon’s share price has appreciated by 32% so far this year

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Source: Yahoo Finance

Starting last Wednesday, Amazon is giving Floridian Prime members new reason to shop at Whole Foods, with 10% off on sale items, and weekly discounts on bestsellers. According to Amazon the discounts will “hit Whole Foods stores nationwide by this summer.”

This is a brilliant move by Amazon, integrating Whole Foods into its wider business, and encouraging cross-pollination of customers between brands. If you’re an Amazon Prime member, you may well be convinced to get a discount on your weekly shop and give Whole Foods a try. If you’re a Whole Foods customer, buying Amazon Prime makes sense just for the discount. Hence, both businesses – Amazon’s online retail and entertainment portal, and Whole Foods brick-and-mortar grocery shops – stand to benefit.

According to Amazon, the 10% discount applies to “hundreds” of items throughout the store, and it also has a number of weekly deals, which are subject to change. At time of writing, those weekly deals include50% off cold brew coffee at Allegro coffee bars, and “sustainably sourced, wild-caught halibut steaks” for $9.99 per lb. (a saving of $10).

Disclaimer
Dominion holds Amazon in its Global Trends Ecommerce Fund.


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The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.