Yea they are insinuating the process of being the third party and performing arbitrage. They are just taking your money at the price they offer you and fill the order at the cheaper price available to them. They are being the middle man and making money from the spread.

So it seems that most people assume that this kind of shop is a replacement to major grocery stores. I dont think that this is what their initial customer base is going to be. I see this more inline with "Fresh & Easy" kind of markets where on the go customers can just stop by for a quick bite or a quick pick up of resources like a 7/11 or something similar. I can see that they may want to expand to supermarkets but I think this is more addressing the quick easy supermarket market and focusing on easy pickups rather then full fledged supermarkets for all grocery needs. I may have missed something but that would be the most logical and successful way for Amazon to introduce this technology.