Though food is generally a low-margin business, AmazonFresh might have some profit potential: 1)...
Jun 6 2013, 08:58 ET
Though food is generally a low-margin business, AmazonFresh might have some profit potential: 1) Amazon's (AMZN) push into grocery delivery could help it sell more general merchandise as consumers bundle orders, according to Wells Fargo analyst Matt Nemer. 2) The company charges customers in the Seatttle area about $8 to $10 for most deliveries to help it cover costs, although orders over $100 can be free. 3) An anecdotal report from a pie maker in Seattle suggests Amazon slices off $2 for every $9 pie sold through AmazonFresh. 4) A buzz-worthy rewards program could also help the company boost overall sales and ratchet up margins.