Amazon is about to start producing its own food products to sell on their website.

Coffee, baby food, tea, spices, and nuts is what Amazon is starting with in the food category. They will also sell diapers, laundry detergent, and vitamins in the household items category. At first, these will only be available to Amazon Prime members. All of these goods will be made by Amazon and will be branded under their own private label.

Why does this matter? Well, if Amazon can prove their food is high quality and have people buy Amazon groceries, they will be able to capture massive profits via online food sales. Also, they are pushing into the drone delivery space and so it seems like Amazon is setting itself up to be the instant delivery store for all things from books, clothes, toothpaste, to groceries. In other words, creating their own food products might not bring a quick ROI, but Amazon is planning for 5–10 years down the road.

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