When Amazon Decides to Flex its Virtual and Real Muscle Power (Again)
Every day, the incessant influence of the Internet rears its head in any number of ways. Just when I think its mesmerizing, all-consuming effect on my life is under control, another aspect invades my psyche and my mindset, drawing me further, once again, from my traditional lifestyle.
Of course, this growing rapture has been compounded and fostered by ubiquitous smartphones. No longer tethered to a desktop or laptop computer, the smartphone has given me the mobility and in-the-moment capability to be omnipresent in all worldly matters. And to think that a mere 10 years ago, the iPhone and its ilk didn’t exist. My, what a short, strange trip it’s been.
We’re living through what just may be the most profound revolution in the history of mankind. Not just an industrial revolution, but a social and economic revolution. The impact of artificial intelligence, the marvels of economic thought and innovations and the upheaval of how we interface with each other socially and politically, are having a profound effect on how we conduct our lives and the growing influence of a handful of Internet-based businesses.
A clear example surfaced this week.
The permanent decline of brick and mortar retail stores at the hands of Internet sales sites seems inevitable. However, the survival of national and regional supermarket chains seems assured. After all, we all need to shop for fresh food and other essential goods. Stores deliver their products much more efficiently and conveniently than any Internet interloper.
It seems not. The behemoth behind the surge in Internet sales has once again disrupted an age-old market. Amazon, the game changer, the monopolistic-like ruler over the American retail industry, has struck again.
The purchase of Whole Foods by Amazon, for $13.7 billion, was completed on Monday.
Amazon announced they were immediately lowering prices at Whole Foods stores on “organic bananas, organic eggs, responsibly-farmed salmon” and a multitude of other products.
Based on the proven strategy of Amazon to woo consumers to shop their website, and the indefatigable ability of Whole Foods to cater to its food and wine customer base through its network of 460 stores, I can readily speculate that wine, ordered online and delivered to your door, is in the offing.
Here’s the real game-changer: Amazon has been diligently building customer loyalty via its Amazon Prime membership service. For a fixed $99 annual cost, purchases on Amazon.com are shipped free in two days. In certain markets, Prime customers receive ordered items the dame day; select items are delivered in two hours – all at no charge. With this convenience incentive, customers are ordering goods at a record pace. Amazon Prime members will soon receive customer rewards when shopping at Whole Foods, a very clever means to tighten Amazon’s grip on the American consumer. What does this portend for local retailers and wine shops? Only time will tell.
And no longer must we rely solely on Alexa, Amazon’s virtual personal assistant. Amazon has ventured into the realm of the living, breathing personal assistant. It offers free two-hour delivery service of beer and wine in several cities. I expect Whole Foods to follow suit in the future.
What’s next?
“Alexa, I’d like to order a nice red, with fruity aromas and taste.”
“Sure, Nick, Whole Foods just announced a sale on ripe organic peaches. How many pounds would you like?”
“Alexa, I don’t want fruit. I want an inexpensive libation I can enjoy with friends over dinner tonight.”
“I understand, Nick. Look no further. Whole Foods can deliver a pre-packaged strawberry/raspberry/nectarine smoothie to your home in two hours. You can serve it in those crystal glasses you purchased online last year from Williams Sonoma.”
“Forget it. I’ll go shopping at Whole Foods myself.”
“Whatever you wish, Nick. By the way, your current GPS coordinates indicate you’re at work. Shall I have an Uber pick you up in the next five minutes?”
Next week: My further thoughts on the future of our neighborhood wine shops in the face of the Amazon juggernaut.
Nick Antonaccio is a 40-year Pleasantville resident. For over 20 years he has conducted wine tastings and lectures. Nick is a member of the Wine Media Guild of wine writers. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
