Amazon lands early blow in groceries battle

Amazon is comfortably beating the major UK supermarkets on price following the recent launch of its chilled and frozen products service. Last week, the e-tailer announced it was selling a selection of products in Birmingham through Prime Now as it reportedly gears up for a full launch of Amazon Fresh in the UK early next year.

Analytics firm Profitero conducted price analysis of the 49 products available in Prime Now’s Dairy, Chilled and Frozen category on 5 October, matched to UK supermarkets carrying the identical products in the same pack-size configuration: Tesco, Sainsbury’s, Asda, Waitrose, Ocado and Morrisons. It found that Prime Now was the clear price leader on these 49 products. However, there were varying degrees of price competitiveness between them. For example, the average product was found to be 45 per cent more expensive on Ocado than on Amazon, while Asda and Morrisons prices were 24 per cent and 30 per cent higher respectively.

And when Profitero did a deeper dive into the price distribution of UK supermarkets versus Amazon Prime Now, it found that 75 per cent of Ocado’s products were priced higher than the same products sold on Amazon (just 20 per cent of products were priced the same). By contrast, Asda priced the same as Amazon across 49 per cent of its products.

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