Amazon’s latest move to acquire the upscale grocery chain Whole Foods for a whopping $13.7 billion largely means great things are coming for third party sellers.
Years ago, before Fulfillment By Amazon (FBA) came into play, it was quite challenging to sell physical goods. Sellers mainly had to rely on SEO marketing.
Then came 2012 and Amazon changed the game.
From then on, interested sellers could come up with a brand and hand the products over to be fulfilled by the billion dollar company. And just like that, a lot of new businesses were built and entrepreneurs were made.
So just as Amazon changed the game with the FBA program years ago, it’s certainly looking to shaking things up with this latest move.
If the deal goes through the giant online retailer will come into more than 450 physical Whole Foods stores in prime locations across the country – locations that are known to have upscale buyers.
This move will not only shake things up in the grocery retail market, it will also do what Amazon has become so great at – frustrating Walmart’s catch-up efforts.
Walmart recently announced a $310 million deal to acquire Internet apparel retailer Bonobos and last year, paid $3.3 billion for Jet.com. According to New York Times, the giant retail company together with its Sam’s Club warehouse chain account for about 18 percent of the grocery market. A much larger reach than the upcoming Amazon- Whole Foods tag team.
But Amazon seems to have thought things through, despite the fact that the upscale grocery chain doesn’t seem to be the ideal target acquisition.
Popularly referred to as ‘Whole Paycheck’, Whole Foods has been known to have prices that are a bit on the higher side. Amazon, on the other hand, prides itself on affordability. So it will be interesting to see how these two work it all out to grab a 3.5 percent share of grocery spending in the United States.
Here’s what all this means for third-party sellers
These are exciting times!
In this video podcast, Ryan Daniel Moran of Freedom Fastlane discusses, “What Amazon's Purchase Of Whole Foods Means For FBA Sellers”:
According to Ryan, the possibility exists that you will be able to put a product on Amazon and, within months, get it in retail stores across the country – especially if it’s part of a well-performing brand.
If you have the best selling cacao butter on Amazon, you could see it go straight into Whole Foods. Sell an awesome meal cheese grater? You could it on retail store shelves within a few months. READ MORE…
For this, we are just talking about selling groceries. But if Amazon decided to grab other retail chains in other markets, this opportunity could be opened up for many types of consumable products.
It could mean you building a successful brand and seeing it appear in retail stores everywhere.
A game changer. Just like that.