AmazonFresh is 14% cheaper than its nearest supermarket rival on branded goods, a study by e-commerce analytics company Profitero has found.
The online giant undercut Asda by 14% and the rest of the big four by more than 20%, found the analysis of 1,000 comparable products.
Waitrose and Ocado had the largest price difference of 28% each when the online study was conducted on 27 March.
The findings showed a narrowing of the price gap since Profitero last conducted the study, which includes price promotions but excludes multibuys.
It found AmazonFresh was 17% cheaper than its nearest rival Morrisons when it launched last summer and as much as 40% cheaper than Waitrose.
At the time, analyst Bernstein gave AmazonFresh’s pricing position a more conservative estimate of 10% cheaper than the big four on brands. But it pointed out that the Amazon offering, which includes Morrisons own-brand items, was only 4% cheaper across the board. According to its research, Tesco was in fact 6% cheaper on own label thanks to its Farms brands.
AmazonFresh also requires a Prime membership at an annual cost of £79 and £6.99 monthly subscription fee for unlimited deliveries on orders over £40.
Bernstein warned that the largest threat could be to Morrisons, despite its deal with Amazon last year receiving a largely positive response. “While some retailers will try to use their differentiated own-label ranges to offset their higher prices, that option isn’t available to Morrisons,” it said. “Morrisons’ deal in the short term may be great, but long term is a major headache.”
No comments yet