Article Analysis Amazon Begins Delivering Farmers...

Article Analysis # 1 Name Hannah Wright Class Principle of Microeconomics 72601 Date September 2, 2015 â€Å"Amazon Begins Delivering Farmers Market Goods to Southland Customers† by Shan Li and Russ Parsons (LA Times, September 1, 2015) Summary: Amazon has begun partnering with Fresh Nation to bring fresh food straight to you doorstep. Fresh Nation has started delivering to areas in southern California, and will next try out New York; from there, based on the success, they will decided where to expand to next. Fresh Nation was created by Tony Lee, who took a break from his work in e-commerce to begin a farmers market in a semi small Connecticut town. When he had the idea to create Fresh Nation, he had already achieved a strong network of farmers across the country, allowing him supply wherever his company was to go. Amazon was the perfect corporation to partner with because they have already installed a grocery delivery service. In order to make the delivery process quick and keep the food staying fresh, Fresh Nation estimates based on past orders how much of each food they will need for the new set of customers, before they even place an order. With this information, Fresh Nation sends out its shoppers to the Farmers Mark et, there they buy the food in high demand and have them sent in a refrigerated truck to the Amazon distribution center. Now that the perishables are in the hands of Amazon, they are delivered to theShow MoreRelatedArticle Analysis : Amazon Begins Delivering Farmers Market Goods For Southland Customers 970 Words   |  4 PagesArticle Analysis # 1 Name Hannah Wright Class Principle of Microeconomics 72601 Date September 2, 2015 â€Å"Amazon Begins Delivering Farmers Market Goods to Southland Customers† by Shan Li and Russ Parsons (LA Times, September 1, 2015) Summary: Amazon has begun partnering with Fresh Nation to bring fresh food straight to you doorstep. Fresh Nation has started delivering to areas in southern California, and will next try out New York; from there Article Analysis Amazon Begins Delivering Farmers... Article Analysis # 1 Name Hannah Wright Class Principle of Microeconomics 72601 Date September 2, 2015 â€Å"Amazon Begins Delivering Farmers Market Goods to Southland Customers† by Shan Li and Russ Parsons (LA Times, September 1, 2015) Summary: Amazon has begun partnering with Fresh Nation to bring fresh food straight to you doorstep. Fresh Nation has started delivering to areas in southern California, and will next try out New York; from there, based on the success, they will decided where to expand to next. Fresh Nation was created by Tony Lee, who took a break from his work in e-commerce to begin a farmers market in a semi small Connecticut town. When he had the idea to create†¦show more content†¦The only catch is that in order to use Fresh Nations service you have to be an Amazon Prime Fresh member. Besides the cost of a membership fee, you do not have to empty your pockets because the groceries are only slightly higher in price then you would find them in the store for. Other companies have also attempted to create online shopping for groceries. Some are thriving because of their innovative delivery methods. Some companies have failed because of the difficulty in supply and the steps including in having the customer receive the product. A local farmer was interviewed and stated that he believes Fresh Nation will benefit the customers and the farmers. The question is, how will it affect the grocery markets? Analysis 1. Law of Demand The law of demand states that there is an inverse relationship between price and the quantity buyers are willing to purchase of a certain good. Fresh Nation is a correct representation of the law of demand. Because Fresh Nation will charge more for their products than what you would find them in the grocery store for, the quantity demanded will be slim. Fresh Nation also has to include the cost of delivery, one reason their prices are higher. As the article mentioned, in order to use Fresh Nation you must be an Amazon Prime Fresh member, another expense that will cause consumers to choose a substitute, causing the quantity demanded to decrease. 2. Quantity Demanded As I discussed