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Do those grocery bags say Amazon.com?

Forget your local bookstore, Amazon.com might be a threat to your local grocery store, too. According to Reuters, Amazon is on the verge of bringing online grocery delivery to cities across the country. The company has been testing what it calls "AmazonFresh" in Seattle. But unnamed sources say customers in Los Angeles and San Francisco will soon be able to get their cheerios, milk and bananas from Amazon.

There are already several players in the e-commerce grocery market, but nobody is dominating yet. But, Amazon's heap of consumer data and buying habits may give it an edge.

"They probably have more data than anybody else does -- that gives them a leg up," says David Bell, professor of marketing at the Wharton School of Business. "Also they are a very broad retailer in terms of the product categories they offer, they are really very much your proverbial 'soup to nut'."

20 other cities could reportedly see AmazonFresh as soon as 2014.

About the author

Ben Johnson is the host of Marketplace Tech.
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