Amazon has captured a huge customer base for their online presence and its $13.7 billion deal for organic grocer Whole Food will sure attract more customers."It kind of feels like they're taking over so much commerce in our life," said Erica McGivern, a Whole Foods and Amazon customer who lives in Seattle, where Amazon is headquartered. "It's intimidating."Pricing plays a major role in online salesThere are many players in the e-commerce organic grocery sector and it is prevalent when a company dominates the market the price of the product increases, that is something natural but Amazon, has a proven track record of keeping prices low and locking.A few feedback reports - Source postbulletin.com"Amazon's strategy has always been a volume strategy, not a profit strategy," said Lauren Beitelspacher, a marketing professor at Babson College in Massachusetts.And while Amazon is the clear leader in e-commerce, 90 percent of worldwide retail spending is still in brick-and-mortar stores, according to eMarketer.Rather than dominate in market share, Amazon dominates "in reaching into customers' lives," Gartner retail analyst Robert Hetu said.
According to reports, the U.S sales of organic meat and poultry, worth $991 million, has increased 17% when compared to last year, marking its fastest-ever annual growth, according to the Organic Trade Association (OTA)Organic sales in the U.S. totaled around $47 billion in 2016, reflecting new sales of almost $3.7 billion from the previous year. The $43 billion in organic food sales marked the first time the American organic food market has broken, though the $40-billion mark. Organic food now accounts for more than five percent -- 5.3 percent to be exact -- of total food sales in this country, another significant first for organic.The OTA farm policy director Nate Lewis said that Amazon’s expansion in organic products through Whole Foods bodes well for the sector.
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