Amazon entry into the organics realmA comment by the Organto Foods (OGO) team:
“My current feeling is that there will be short-term pressure on goods that are not supply restricted - bananas, cookies, etc. For supply restricted products that require much more demand management and logistics planning, I think the ability to lower prices will be more difficult for Amazon. The available supply will go to where the margins are best. Over time, scale will increase, efficiencies will rise, and at that time pricing may come off a bit in lieu of incremental margin $ and product distribution. I would only add that much of the organic industry (particularly vegetables) is supply constrained. The organic producers will generally go to higher margin accounts in a supply constrained environment”
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