Amazon recently pulled the plug on its online food delivery service Fresh
in a number of areas across nine states in the United States. The decision was apparently blamed on the failure of the postal service
to deliver the perishable goods on time, or in some cases, at all. While the service is also offered in cities abroad such as London, Berlin and Tokyo, as analysis
from Kantar Worldpanel shows, the Seattle-based company and others like it have an awful long way to go if they are to make a meaningful dent in the market share still held by traditional bricks and mortar grocery stores.
As a share of all FMCG revenue in the U.S., e-commerce still accounts for only 1.5 percent. This compares to the likes of South Korea, with a huge 19.7 percent. Having seen a 40 percent increase in online grocery spending last year, the country is the world leader, and by a big margin. In joint second place, with a whole 12.2 percentage points less, are the UK and Japan. FMCG e-commerce has long been on offer to consumers in the UK
and is very much a mature market, with penetration growth slowing over the last few years. South Korea, on the other hand, is still going from strength to strength.