Amazon Fresh, the online giant’s grocery delivery service, will be shut down in Singapore on July 6, as it cuts its local fulfilment services and prioritises international stores to deliver to the country’s consumers.
Partner stores, such as Watsons and Little Farms, will also be discontinued with the shutdown, Amazon told Singapore customers in an e-mail today.
Amazon Prime subscribers, who pay S$4.99 a month, will continue to enjoy the Prime Video streaming service and offers such as free shipping and discounts for selected goods.
However, the popular Amazon Fresh service will be missed by those who rely on its two-hour delivery service and large selection of groceries. This leaves the market open to rival Lazada and its Redmart online grocery store.
Amazon had entered Singapore in 2017 with a small selection of offerings via a fast-delivery app. It later opened Fresh and a full retail shopfront on Amazon.sg in 2019.
Just last year, it had opened an “everyday essentials” store that promised fast delivery of frequently bought items in Singapore. From diapers to weekly grocery restocks, the dedicated storefront promised to deliver tens of thousands of new local and international products – sometimes on the same day or in about two days.
However, in a blog post today, the company said that consumers on Amazon.sg valued items sold on its international stores from the United States, Germany and Japan, so it would prioritise selling those products.
“We’re seeing strong demand for products from international stores, and we’re responding by increasing our investment in what customers tell us they want most – great value selection from around the world with fast, reliable delivery,” said Peter Li, Amazon Singapore country manager.
“The Amazon.sg storefront – with tens of millions of products and the shopping experience customers know and love – has been welcomed by our customers and will continue to be the place for hundreds of thousands of Singaporeans who want to access the items they need from right across the world,” he added.
As a result of the change, a “small number” of employees at Amazon will be affected. The Business Times reported that this means less than 10 per cent of its workforce in Singapore. Some would be given new roles while others will leave with severance pay and other support.
Across its retail, global selling, entertainment, devices, and cloud businesses, Amazon employs 2,500 people in the city-state.
