You’ve heard about Amazon Fresh – it’s Amazon’s grocery delivery service that brings everything from fresh produce to pantry staples right to your door. But what does Amazon Fresh mean for you as an Amazon seller? A lot, actually. Amazon Fresh stores are popping up in cities across the country, and getting your products on those physical shelves can take your sales to the next level. But it’s not as simple as just shipping your goods to Amazon.
This guide will walk you through everything you need to know to get your products into Amazon Fresh stores in 2024. You’ll learn all about the requirements, how to apply, tips for getting accepted, and what to expect once your items are available for 1-2 hour delivery to customers. Whether you sell packaged foods, beverages, supplements, or grocery items, you’ll get the inside scoop on these exciting opportunities to expand your reach and boost revenue. So read on to get the full rundown of selling on Amazon Fresh.
Quick Guide:
- What is Amazon Fresh and how does it work?
- The benefits of using Amazon Fresh for grocery shopping
- Requirements to Selling on Amazon Fresh
- How to sell on Amazon Fresh: A step-by-step guide
- How to become an Amazon Fresh supplier
- Amazon Fresh marketing strategy: Tips for success
- Amazon Fresh Fees, Pricing and Payments for Sellers
- Maximizing sales on Amazon Fresh: Best practices for sellers
- Amazon Fresh store locations and availability
- Conclusion
What is Amazon Fresh and how does it work?
Amazon Fresh is Amazon’s grocery delivery and pickup service. It allows you to shop for groceries and household items on Amazon.com and have them delivered to your doorstep or pick them up from an Amazon Fresh location.
Selection and pricing
Amazon Fresh offers a variety of products including vegetables and fresh fruits , meat and seafood, dairy, bakery items, packaged groceries, beauty and household essentials. Prices are competitive with most supermarkets.
Ordering and delivery
You can place an Amazon Fresh order on Amazon.com or using the Amazon Fresh app. Delivery is available in select cities and zip codes. You can choose a delivery window for the same day or schedule up to 7 days in advance.
Pickup
If you prefer picking up your order, select an Amazon Fresh Pickup location near you. Your order will be ready within 2 hours. You just drive to the location, check in using the app and an associate will load your groceries into your car.
Returns and refunds
Amazon Fresh offers free returns on most items. Simply initiate a return on Amazon.com and drop off the items at an Amazon return center or Whole Foods Market store. Returns must be initiated within 30 days of delivery. Perishable goods can only be returned if unopened. You will receive an automatic refund once the return is processed.
With competitive prices, a wide selection, convenient delivery and pickup options, and easy returns, Amazon Fresh is a great option for your grocery needs.
The benefits of using Amazon Fresh for grocery shopping
Amazon Fresh is Amazon’s grocery delivery and pickup service, available for Prime members in select locations. As an Amazon seller, using Amazon Fresh for your grocery shopping offers several advantages.
Convenience and time savings
With Amazon Fresh, you can shop for groceries from anywhere using the Amazon website. No more trips to crowded grocery stores. Your fresh groceries will be delivered straight to your door or available for pickup at an Amazon pickup location near you. This can save you hours each week that you’d normally spend shopping and waiting in checkout lines.
Competitive prices
Amazon Fresh offers competitive prices on grocery staples as well as gourmet and specialty items. Amazon is able to keep costs low due to their massive purchasing power and efficient supply chain. These savings are passed onto customers. You’ll often find lower prices with Amazon Fresh compared to traditional grocery stores.
High quality fresh produce and ingredients
Despite the convenience, Amazon Fresh doesn’t skimp on freshness or quality. You’ll find high-quality fresh produce, meats, dairy and other perishables. Many items are locally sourced from farms and producers in your area. Strict temperature controls are used during delivery to ensure freshness.
Using Amazon Fresh for your grocery shopping provides an easy, affordable and high-quality solution. With prices and selection rivaling traditional stores and the convenience of delivery or pickup, Amazon Fresh aims to take the hassle out of your grocery routine. For Amazon sellers and customers alike, that’s an opportunity worth exploring.
Requirements to Selling on Amazon Fresh
To sell your products on Amazon Fresh, there are a few requirements you’ll need to meet first. Amazon wants to ensure that only the highest quality perishable goods make it onto their virtual shelves.
Product Freshness
Since Amazon Fresh specializes in delivering fresh groceries and perishable goods, your products need to have a decent shelf life. In general, Amazon looks for products with at least 7 to 14 days of shelf life remaining upon delivery to customers. Some categories like baked goods, dairy, and produce may require even shorter timeframes. Make sure you understand the requirements for your specific product category.
Food Safety Certification
To sell food on Amazon Fresh, your company must have a certification for safe food handling practices. The most common certifications are SQF, BRC, and FSSC22000. These audits ensure your company follows proper sanitation, employee hygiene, and hazard control procedures. If you’re just getting started, SQF Level 2 certification is typically sufficient for small food producers.
Product Labeling
All products sold on Amazon Fresh must have proper labeling that complies with FDA regulations. This includes an ingredients list, net quantity statement, name and address of the manufacturer or distributor, and nutritional information. Perishable products also require “use by” date coding to ensure freshness. Amazon may reject products that do not meet labeling requirements.
Shipping Capabilities
To qualify for Amazon Fresh, you must be able to properly pack and ship perishable goods. This means using insulated packaging, cold packs, and expedited shipping to keep products chilled during transit. Amazon Fresh deliveries also require adult signatures to ensure someone is available to properly receive the shipment. Make sure you understand how to ship perishable goods before applying to the program.
Meeting these requirements may seem daunting, but with some preparation you can position your company to take advantage of the huge opportunity Amazon Fresh offers. Focus on building a quality, food safety-focused operation and you’ll be selling fresh on Amazon in no time.
How to sell on Amazon Fresh: A step-by-step guide
The key to selling successfully on Amazon Fresh is making sure your products meet their strict criteria. Once approved, attracting customers comes down to competitive pricing, high quality, and strong customer service. Here’s how to get started:
Ensure your products qualify
Amazon Fresh only accepts perishable goods with a minimum shelf life of 7 days. They must be properly packaged and labeled for individual sale. Check that your products meet all FDA requirements for food. If you’re producing prepared foods or meals, you’ll need proper permits and licenses.
Create an Amazon seller account
Create an Amazon seller account and sign up for a Professional Selling Plan account to sell on Amazon Fresh. You’ll provide business details, tax information, and product listings. There is a $39.99 monthly subscription fee.
List your products
Enter details like product name, images, price, quantity, and expiration date for each item. Amazon uses this info to determine if your product qualifies for Amazon Fresh and how to properly store and ship it. Competitive pricing is key.
Ship inventory to Amazon
Once your products are listed, ship inventory to Amazon’s warehouses, clearly labeled for “Amazon Fresh”. They handle storing and shipping to customers. Replenish stock as needed to avoid running out of popular products.
Provide great customer service
Even though Amazon handles fulfillment, you’re still responsible for customer service. Respond quickly to questions and concerns and issue refunds or replacements if needed. Build a loyal customer base through high quality products and service.
Optimize and advertise
Run promotions and sales, update listings with enticing product images and descriptions, and bid on advertising to increase visibility. Look for ways to optimize the customer experience.
How to become an Amazon Fresh supplier
Meet the requirements
To become an approved supplier for Amazon Fresh, you’ll need to meet some basic criteria. Your company must have been in business for at least one year and have all proper licenses and permits to sell food products. You’ll also need to pass an initial food safety evaluation. Many suppliers start by selling pre-made meals, snacks, or shelf-stable grocery items.
Apply and get approved
To apply, visit Seller Central and select “Apply to sell in Amazon Fresh”. You’ll have to provide details about your business, products, and food safety practices. The review process takes around 4 to 6 weeks. If approved, you’ll gain access to the Amazon Fresh portal where you can list your products, check sales reports, and manage orders.
Prepare and ship inventory
Make sure you understand Amazon’s labeling, packing, and shipping requirements before sending your first shipment. All products must have scannable UPC codes and proper expiration/use-by dates. Perishable items require temperature-controlled shipping and must be delivered within 1-2 days. It’s best to start with a small shipment in case any issues need to be addressed.
Amazon handles the customer ordering and delivery process. They will purchase your products upfront and handle returns/refunds. You are still responsible for high quality and food safety standards. Continually optimizing your product listings, managing inventory, and providing great customer service will help boost your sales over time.
With some patience and persistence, selling on Amazon Fresh can open your products up to millions of customers across the U.S. and Canada. Pay close attention to trends in grocery ecommerce and make sure your business is well positioned to take advantage of new opportunities.
Amazon Fresh marketing strategy: Tips for success
With Amazon Fresh, you have the opportunity to reach many new customers. However, the competition is fierce. To stand out, focus on these key parts of your marketing strategy:
Optimise your product listings
Create high quality product images. Write detailed but scannable product descriptions highlighting your product’s key benefits and features. Include keywords that your target customers are searching for to rank higher in search results. Offer competitive pricing and discounts to drive more traffic to your listings.
Run sponsored ads
Amazon PPC ads, like Sponsored Products and Sponsored Brands, are a great way to promote your products at the top of Amazon search results and product pages. They boost visibility and traffic to your listings. Set up automatic targeting to reach customers searching for products like yours, or choose specific keywords and products to target for the best results.
Leverage Amazon Vine
The Amazon Vine program gives top products to trusted reviewers in exchange for their honest opinions. Having a high number of positive Vine reviews builds social proof and credibility for your products. If selected to join, take advantage of this opportunity to gain more reviews and increase trust in your brand.
Cross-promote on and off Amazon
Promote your products across all of Amazon’s sites, including AmazonFresh. Also advertise on social media, your own website, email marketing, and anywhere else your audience spends time. Use retargeting to reconnect with people who viewed your products but didn’t buy. Offer promotions and discounts to encourage them to come back and make a purchase.
Provide great customer service
Customer service is key to getting loyal, repeat customers. Respond to questions and concerns quickly and helpfully. Offer fast, free shipping and hassle-free returns. Follow up with customers to make sure they’re satisfied with their purchase. Build personal connections and your customers will keep coming back to buy from you again.
With a strong marketing strategy leveraging all of Amazon’s tools and resources, you’ll gain more visibility, drive more traffic, increase sales and build a loyal customer base for your products on AmazonFresh. Focus on optimizing your product listings, running effective ads, getting more reviews, cross-promoting everywhere, and providing amazing customer service.
Amazon Fresh Fees, Pricing and Payments for Sellers
As an Amazon Fresh seller, you’ll pay fees for various services to sell your products. The good news is that fees for the this program are quite reasonable. Amazon aims to keep fees low so you can focus on growing your business.
Referral Fees
For each item sold, you’ll pay a referral fee, which is a percentage of the total sales price. The exact referral fee depends on the product category. Grocery and gourmet foods typically range from 6-15%. These fees go towards operating Amazon Fresh and compensating Amazon for referring customers to your products.
Pick & Pack Fees
Amazon will handle picking, packing and shipping your orders to customers through the Amazon Fresh service. The pick & pack fee for a typical grocery item is around $0.75-$2 per unit. The exact fee depends on the size and weight of your product. These fees cover the costs of Amazon employees picking and packing your items.
Storage Fees
If you choose to use Fulfillment by Amazon (FBA) to store your inventory in Amazon’s fulfillment centers, you’ll pay monthly storage fees. For standard-size grocery and gourmet food items, you can expect to pay between $0.30 to $2 per cubic foot. The storage fees cover the space your items take up in the fulfillment centers. You’re only charged for the space you actually use.
Shipping Credits
One of the benefits of the Amazon Fresh program is that Amazon handles the shipping for all your orders. However, you will need to pay shipping charges to send your inventory to Amazon’s fulfillment centers. Once your items arrive at the fulfillment centers, Amazon will ship them for free when customers place orders. You’ll receive shipping credits to offset most of the costs of sending your inventory to Amazon.
The key is to factor all these fees into your product pricing to ensure you still make a good profit margin. While the fees may seem complicated, Amazon provides tools to easily calculate what your total fees will be for any product. By keeping fees low and volume high, you’ll find success selling grocery and gourmet foods through Amazon Fresh.
Maximizing sales on Amazon Fresh: Best practices for sellers
Now that Amazon Fresh has expanded to more areas, it’s an ideal time for sellers to tap into this market. Customers tend to buy more groceries and household essentials, so products in these categories typically sell very well. Here are some tips to boost your sales:
Focus on eligible products
Double check that your items qualify for Amazon Fresh before listing them. Grocery, household and pet supply products are good bets. Also, be sure your items have a longer shelf life, as Fresh customers expect items to last.
Optimize your product detail page
Select eye-catching images and write enticing product descriptions to capture customers’ interest. Call out key attributes like organic, natural or eco-friendly. Highlight your brand story and any certifications. These details resonate strongly with Fresh shoppers.
Run promotions and coupons
Offering deals and discounts is key to standing out. Run temporary price reductions, coupons or multi-buy promotions to drive more sales. Time your promotions around holidays for the biggest impact.
Build a loyal customer base
Provide great quality and service to cultivate repeat Fresh customers. Run loyalty programs offering perks for return shoppers. Strong word-of-mouth and reviews from satisfied shoppers will also help you gain more new customers over time.
Analyze your metrics
Closely track your sales, traffic and conversion rates on Fresh to see what’s working and make improvements. Look for opportunities to boost sales during seasonal peaks or expand into new product categories that your customers want. Make data-driven decisions to optimize your Fresh storefront.
Amazon Fresh store locations and availability
Amazon Freshstores are popping up across the U.S. and Canada to provide customers with a physical place to shop for groceries, packaged goods and prepared foods. As an Amazon seller, it’s important to understand where these stores are located and how you can get your products on their shelves.
Currently, there are over 500 stores open for business in major cities across North America, with many more planned to open in the coming years. The stores tend to be concentrated in large metro areas, especially on the West Coast. Some of the cities with the highest number of stores include Seattle, San Francisco, Los Angeles, Chicago and New York.
The good news is, as an Amazon seller, you already have a foot in the door to get your products into these stores. Amazon prioritizes products that are already selling well on their website to feature in stores.
To be considered for, make sure your products meet some basic criteria. They should have professional packaging, be ready for retail display, and have a proven sales record on Amazon.com. Grocery and gourmet food items in particular should have at least 6-12 months of shelf life remaining. You should also be able to ship full case packs for in-store replenishment.
Once in stores, Amazon uses their Just Walk Out technology so customers can grab items and go without waiting in checkout lines. Your products are tracked through cameras and sensors as customers shop, then charged to their Amazon account when they leave the store. This convenience is a big draw for customers, so being featured in-store can significantly boost your sales and visibility.
Conclusion
Well there you have it everything you need to know to get started selling on Amazon Fresh in 2024. By now you should have a solid understanding of the opportunities and challenges of this exciting new sales channel. Just remember that staying informed and flexible will be key as things continue to evolve. Don’t let the rapid changes intimidate you. With the right preparation and persistence, selling on Amazon Freshstore could take your ecommerce business to the next level this year.
