WASHINGTON — After being a main reason for the ouster and closing of electronic stores like Circuit City and CompUSA, Amazon is setting its sight on online grocery shopping.
Reuters reports that this ambitious plan seems to creep in on a retail market unaffected by Internet retail giants like Amazon: Online grocery orders.
Wal-Mart is testing a program of their own in the San Francisco Bay area and does operate in Great Britain, but actual results have yet to be seen on a large basis within the U.S.
But, Amazon could do well in the online grocery market because it also sells electronics and other items that have higher margins than the typically-low-margin groceries. Amazon has already tested its online grocery products, called AmazonFresh, in its hometown of Seattle, Washington.
Amazon plans to open up locations in Los Angeles and San Francisco Bay area later this year. If it does well, Amazon plans on opening up to 20 other urban areas in and outside of the U.S. in 2014.
Their plans come at a time where their tax policies and policies of other giants like Apple and Amazon have enraged politicians in countries like Great Britain, France and even the U.S. When economies are struggling and governments cannot make tax revenues meet budget deficits, large companies like Amazon and Google tend to be the first on their radar.
France has even proposed a “Google Tax” of sorts to bring in more tax revenue.