Amazon reportedly taking on Costco, Sam's with bulk goods service

USA Today reports Amazon (AMZN) is prepping a service that will allow Prime subscribers to place as many consumer goods items as they wish into a set-sized box, provided a weight limit isn't exceeded.

Sources state the service, called Pantry, will launch next year, feature a small shipping fee, and initially support ~2K items "typically found in the center of grocery stores." It would act as new competition for bulk consumer goods sellers such as Costco (COST) and Sam's Club (WMT).

Amazon appears intent on grabbing a larger share of grocery and consumer packaged goods spending. The company is in the midst of rolling out its AmazonFresh same-day/grocery delivery service in major U.S. metro areas, and its Quidsi unit has rapidly expanded into many consumer/household goods markets.

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Comments (5)
  • Gary J
    , contributor
    Comments (11474) | Send Message
    Pretty soon I may never see the inside of a store again.
    12 Dec 2013, 05:20 PM Reply Like
  • portatopia
    , contributor
    Comments (1541) | Send Message
    Good luck taking on COST and WMT. These are very profitable mega retailers. They have plenty of cash to initiate and sustain a price war against AMZN if they choose so. The same cannot be said for AMZN which is cash flow negative.
    12 Dec 2013, 10:19 PM Reply Like
  • RoyalPhanta
    , contributor
    Comments (23) | Send Message
    Many people I know have been using the boxed app for bulk purchases.


    Maybe an acquisition by Amazon is in Boxed's future?
    12 Dec 2013, 10:45 PM Reply Like
    , contributor
    Comments (209) | Send Message
    Media likes to hype any thing Amazon will do. Putting all different consumer good into one big box is not equal to bulk sale. Costco offer lower price by selling same item in large quantity and manufacturers pack specifically for Costco. Amazon has no price advantage here.
    13 Dec 2013, 03:16 PM Reply Like
  • Gary J
    , contributor
    Comments (11474) | Send Message
    "Amazon has no price advantage here."


    Who said anything about price advantage? It's more about grabbing some market share. There are quite a few people that would even pay a little more to get their paper towels on the doorstep rather than go see the Walmart greeter. Like me.


    "Amazon appears intent on grabbing a larger share of grocery and consumer packaged goods spending."
    13 Dec 2013, 03:34 PM Reply Like
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