19 April 2006

In an effort to become the website of choice for online consumers, the US retailer Amazon has added corn flakes to its usual offerings of books, films and CDs.

However, it isn't just selling breakfast cereals and is offering around 2,000 different types of basic packaged food via its US website.

The company is positioning itself as a rival to larger US retail chains including Wal-Mart and Costco and it is being promoted as a low cost retailer selling goods in bulk.

However the website will also be catering for the gourmet end of the food market, offering delicacies such as French truffles as well as food gift baskets.

Industry experts believe the US company is hoping to diversify its product range in order to regain ground in the marketplace lost to new online competitors such as eBay, who are providing alternative places to find the cheapest books and music.

According to the Financial Times, online supermarket services have been less successful in the US than in Europe so far, which has been put down to the different shopping habits and lower population densities.

© Adfero Ltd

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