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Amazon to take on Costco, Sam's Club with Pantry

Amazon offers CPG goods shipped in a set sized box with a maximum weight limit

Amazon is looking to compete with warehouse clubs like Costco and Sam's Club.

According to reports, Pantry is set to launch in 2014 and will put the online retailer in competition with warehouse clubs that sell limited items in huge volume at low prices.

Members of Amazon's Prime shipping program will be able to choose from some 2,000 centre store goods (from cleaning products to canned foods and some dry grocery).

These consumers will be able to put as many of these items into a set sized box, up to a specific weight limit for a small fee.

A research firm estimated that the CPG opportunity for e-commerce companies is worth some $470 billion a year. Amazon could capture $222 billion of that, said the firm.

Until now, the packaged goods market has alluded firms like Amazon because of the high cost of shipping online orders.

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