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Good story in Seafood Business about the relationship between Santa Monica Seafood and Amazon Fresh, a business connection that the seafood supplier at first resisted because it believed that a delivery service was unworkable.

"However, after 'tearing back the skin and looking at everything Amazon is doing' and testing fresh seafood delivery via AmazonFresh’s Los Angeles Spotlight this spring," the company decided that "the fulfillment process was sound" and could provide some ancillary income.

Bob Vogel, the seafood company's director of retail operations, says that Amazon Fresh is delivering more sales than expected. “'We targeted $300 a day and are doing $200 to $600 a day, and that is on limited codes,' Vogel says. SMS has been selling around 20 fresh SKUs - including wild king salmon fillets and its house-made Spicy Salmon Burgers - to AmazonFresh customers in the Los Angeles area."

And, Vogel says, "In the past few years, I have seen several grocery-delivery services start up and then fail because they didn’t understand the logistics. Amazon already has the vehicles and distribution in place. What they are doing is doorstep delivery from unique companies related to the food industry, such as a meat guy, a cheese guy and a seafood guy. Amazon is positioning itself to play with a vibrant perishable community."
KC's View:
Good piece. I've talked with folks in LA who have used Amazon Fresh, and there seem to be some holes in the service - mostly product availability (not as consistent as they'd like) and the cost of shipping (too high, they think). But I suspect that over the long run, this strategy will be a winner, because Amazon will fix the problems and build on the strengths.