Amazon, Whole Foods, and Fancy Peanut Butter

So, Amazon bought Whole Foods. In other words, Amazon instantly grew its grocery supply chain by something like 100x.

Americans still overwhelmingly shop for groceries at the store, but this could be eaten away by integrations like Alexa. Soon, the staples from your Amazon shopping list will be ready when you walk into Whole Foods, and you can pick out the last few things, like fresh produce, yourself. 

Once consumers are used to starting their grocery experience online, small food creators like Justin’s get a new playbook. In today’s grocery stores, the way you sell is by getting distribution, a.k.a. shelf space. But shelf space is unlimited online. And so a new model makes sense, based on superior experience and superior SEO. Expect reviews and word of mouth to matter far more than they do today. There’s never been a better time to create a niche food product.

Lastly, I wouldn’t be surprised to see Amazon Prime discounts for grocery items as a way to encourage loyalty. Perhaps the discounts are only available for people who start their orders online.