Web supermarket war as Amazon launches internet grocery store(69665)

Web supermarket war as Amazon launches internet grocery store

It was one of the leaders of the internet shopping revolution.

And it seems that Amazon may be about to transform our purchasing habits all over again.

The retailer has started selling food and household products on its website, in a move that threatens the dominance of online supermarkets such as Tesco, Ocado, Asda and Sainsbury s.

Amazon has announced a new grocery division which will sell big brands from Pampers nappies to Walkers crisps.

The move by Amazon has been supported by big brands, including Nestle, PepsiCo and Procter & Gamble, many of which feel they have received poor treatment and returns from the dominant UK supermarkets. But Amazon has also formed a partnership with smaller 'marketplace suppliers to offer fresh produce and meat.

Director of grocery at Amazon.co.uk, James Leeson, said: Our aim is to be the place where customers can find and discover any product they want to buy online.

Products that are popular in the U.S. and Europe but hard to find in Britain are also available.

But there is only a limited range of fresh produce, fruit, vegetables and bread.

Unlike the big supermarkets, Amazon offers a discount for bulk purchases of products such as nappies, washing powder, pasta, rice, herbs and cooking oil.

The service also beats the existing major players by offering unlimited next-day delivery for an annual membership fee of 49 with Amazon Prime. For those who aren t in a hurry, free super saver delivery is available on all purchases.

Customers will be able to place orders via a smart phone as well as a home or work computer.

The move by Amazon has been supported by big brands, including Nestle, PepsiCo and Procter & Gamble, many of which feel they have received poor treatment and returns from the dominant UK supermarkets. But Amazon has also formed a partnership with smaller marketplace suppliers to offer fresh produce and meat.

Director of grocery at Amazon.co.uk, James Leeson, said: Our aim is to be the place where customers can find and discover any product they want to buy online.

An analyst at retail experts Nielsen Online said: Supermarkets should be nervous as the Amazon name is so well known and is one of the original, oldschool online brands.

But it would also need to convince customers that it could be as reliable with groceries as it is with books and DVDs.

A snapshot survey conducted yesterday suggests Amazon will be more expensive than its rivals on many items. For example, chocolate, laundry powder, coffee and duck were all cheaper from Tesco.

But analysts believe Amazon will be a particular threat to Ocado, which sells Waitrose food to many areas.

Their prices are more similar, but Amazon undercuts Ocado on some goods.