What can brands learn from the failure of Amazon Fresh?

The convenience and ease of use of Amazon’s marketplace is a well-documented fact. With its enormous product range, user-friendly interface, well-advertised quick deliveries, and competitive pricing, it has emerged as the world’s leading B2C platform for buying anything from light bulbs to peanut butter.

Few would question the thought and meticulous attention to detail that have gone into the UX element of this platform, not to mention its approach to logistics, which is considered one of the most advanced and efficient in the world. Nothing about this company is accidental, making the rollout of its tech-powered Fresh shops across the UK – followed by the decision to shut down all 19 shops less than five years later – even more surprising.

A leap into the unknown

At the outset, Amazon Fresh aimed to extend Amazon’s tech-powered convenience to the world of physical retail, enabling consumers to shop without the need to go through checkout tills to pay for goods. It’s not hard to imagine how this promise could have resonated with people who prefer physical shopping but hate wasting time in queues or interacting with cashiers.

The initial reaction to Amazon Fresh’s UK store openings in 2021 was a mix of curiosity, intrigue, and cautious optimism, especially given Amazon’s reputation for innovation and disruption. The ability to scan in via the app, pick up items tracked by cameras and sensors, and leave without queuing was seen as a futuristic leap in UX.

A less than warm welcome 

Despite the initial curiosity, many customers felt uneasy about the experience, describing it as ‘shoplifting’. Others raised concerns about privacy and surveillance due to the extensive tracking and data collection involved in the shopping process.

In addition, Amazon may have underestimated the UK’s strong supermarket culture and consumer loyalty to established brands such as Tesco, Sainsbury’s, Waitrose, and M&S, and its ability to disrupt it without a competitively priced offering comparable to that of Aldi or Lidl.

Amazon Fresh is far from the only example of a failed attempt to wow the British consumer with cutting-edge retail tech.

In early 2025, Sainsbury’s removed Amazon’s ‘Just Walk Out’ technology from its checkout-free London store in Holborn, a stone’s throw from SEC Newgate’s London HQ, reverting to a more traditional checkout experience. Powered by Amazon’s technology, it allowed customers to enter by scanning a QR code generated by the Sainsbury’s app, enabling them to shop and pick items before leaving the store without using physical cash or bank cards at any point in the customer journey.

Meanwhile, all four Tesco GetGo shops, using similar technology, continue to operate as normal. It is important to note, however, that unlike Amazon Fresh, Tesco features traditional checkout options in three out of four stores, with only one being fully checkout-free.

What went wrong with Amazon? 

The reasons behind Amazon Fresh’s failure to capture the imagination of the British consumer are complex. If the lack of uptake were confined exclusively to Amazon, it would be easy to blame the lack of brand equity for low levels of consumer engagement. What seems more likely, though, is that there was no targeted educational campaign to communicate the benefits of this innovative, hassle-free experience to potential customers.

In addition, there appears to have been a lack of incentives to encourage people to forego their routines and try a new way of shopping, such as substantial discounts or freebies. Thirdly, and crucially, it doesn’t seem like Amazon or Sainsbury’s were on a mission to tackle a real problem. Queuing for tills is no one’s favourite pastime, but let’s face it: self-checkout technology has already helped address much of that. And small supermarkets are rarely the go-to spots for families doing their weekly shop (who often waste vast amounts of time queuing) – those shoppers would much rather go to bigger, out-of-town supermarkets with parking or order online. 

Lessons for innovators 

Perhaps, the real takeaway from Amazon Fresh is that in an area of abundant choice and high competition, businesses should focus on offering solutions to real – not imaginary – problems. Once these have been identified, work should begin on educating the consumer in a consistent and targeted way, through a well-thought-out communications and marketing campaign.

Established brands must resist the urge to rely solely on their market share and customer loyalty when launching new products, however strong the temptation may be.