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Amazon Discontinues Prime Pantry

By Jamal Carnette, CFA - Jan 8, 2021 at 1:46PM

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The company is not afraid to disrupt itself to improve the user experience.

Amazon's ( AMZN 1.47% ) Prime Pantry service is no more. Last month, Amazon alerted Pantry users that the $5-a-month bulk and nonperishable grocery delivery service would soon be discontinued, and that users would receive a refund for Pantry subscription costs.

This week, Amazon put the final stake through the heart of the service, with a spokesperson saying, "As part of our commitment to delivering the best possible customer experience, we have decided to transfer Amazon Pantry selection to the main Amazon.com store so customers can get everyday household products faster, without an extra subscription or purchase requirement."

Woman on smartphone with credit card out leaning on a kitchen counter with a box of groceries.

Image Source: Getty Images

Initiated in 2014, Amazon's Prime Pantry service had started to become redundant after the company acquired Whole Foods in 2017. Amazon Fresh was also launched that year, and has subsequently become a branded grocery chain in its own right.

Prime Pantry is a prime example (pun shamelessly intended) of Amazon not being afraid to disrupt itself. Pantry was initially conceived as a way defray the cost of shipping heavier items, but logistical improvements and Amazon's move into physical storefronts rendered Prime Pantry duplicative and confusing.

Look for the online-grocery wars to continue to heat up. Amazon is considering opening a Whole Foods online-only store and is expanding its physical footprint with the Amazon Fresh concept

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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