Amazon: Fresh service bolstering other orders

While it's not providing any figures -- as usual -- the company says it's already seen an increase in sales of other items as a result of its grocery delivery service.

Amazon

Amazon is selling more general merchandise thanks to the frequent deliveries made by its AmazonFresh grocery delivery service, the company said Thursday.

Amazon Chief Financial Officer Thomas Szkutak didn't give too many details during the company's third-quarter earnings call, but he did say Amazon was happy with AmazonFresh's latest entry into the Los Angeles market.

"It's very, very early in LA, but what we see so far we like. We're adding a lot of selection there on behalf of customers," he said during the company's quarterly earnings call.

When asked whether the company was selling more non-grocery items as a result of the more frequent deliveries to AmazonFresh customers, Szkutak simply replied, "Yes."

Amazon had been testing its online grocery delivery service in Seattle for about five years before it launched in the LA area this past June. Customers can order fresh groceries as well as other merchandise and receive the items that same day or the next.

As expected, the company didn't reveal any numbers around AmazonFresh. Szkutak was even more vague when asked if offering same-day delivery for its entire site was a priority for Amazon, given its competitors' move into the space .

Szkutak answered that the company has been focused on adding more fulfillment centers with more inventory to improve the speed of its deliveries.

"You've seen that improvement gradually in the past 10 years. You've seen it's gotten better in the last few years...That's something we think is important, and we'll continue to work on making sure they get products when they want it," he said.

 

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