laska’s unique geography has sparked creative ecommerce tactics among national and Alaska-based retailers. Some companies have developed distinct shipping practices to facilitate delivery of perishable foods to customers in rural Alaska; others have partnered with local distributors to create hybrid fulfillment models that combine the convenience of online ordering with the reliability of local inventory.

Mike Jones, an economist at UAA’s Institute of Social and Economic Research has focused much of his research on food security and food transportation. Having analyzed aviation supply chains and Alaska ecommerce as part of his state-funded work, Jones has gained some interesting insights into the role of digital commerce, including its impact in remote communities.

Jones notes that Amazon Prime has become a major ecommerce solution in rural Alaska. In fact, people often mention “before Prime” or “after Prime” when referring to the retailer’s entry in their market. “This [Prime] has become a very routine way of ordering quite a lot of goods, even non-perishable food goods,” he says. “It seems to have changed the way people go about acquiring a lot of basic supplies for daily life, and that brings Amazon much more intensely into the rural [off-road] Alaska landscape.”

Other major players are also actively engaging in ecommerce in the state. Alaska Commercial Company (AC) operates more than thirty combination food, general merchandise, and convenience stores. The company launched an app in 2023 to make it easy for customers to order fresh groceries and general merchandise from AC stores with their smartphone. The multi-featured AC app offers a convenient way for shoppers to place Bush or even curbside pickup orders. “This allows folks who live downstream, even smaller communities, to order directly through the Alaska Commercial Company and have Bush orders delivered on demand,” Jones says.

Costco has expanded its own rural delivery options to be more competitive in the ecommerce sector. Last year, the membership-only, big-box retailer announced ambitious plans to offer faster delivery times in Alaska. However, Costco.com has a shelf-stable product restriction for its two-day delivery program as well as limitations for shipping to some areas of Alaska.

Retailers typically base their shipping policies on the delivery location and perishability of the items ordered. Jones explains: “There are some geographic restrictions and a limitation to shelf-stable food products with outlets like Amazon or even Alaska-based Costco warehouses or Three Bears Alaska stores versus Bush orders from a rural-located retailer like Alaska Commercial Company that does ship perishables. One Anchorage-based exception is Fred Meyer, which allows Bush orders of fresh food, but has not adopted a similar online Bush ordering platform.”

He adds: “As you move through the market, you move from Anchorage to our hub communities, and then to the spokes. And it gets much more difficult to successfully ship certain types of products, particularly perishable products. Thus, the companies that can meet those needs are likely to still need to be somewhat close to their consumers when products are beginning that journey. There might be some expected product differentiation between what ecommerce is able to touch from nationally based companies versus ecommerce expansion from firms that are at least in the hubs.”

Currently, AC uses air freight for its app orders. Three Bears Alaska sends dry goods to villages via the United States Postal Service. Fred Meyer ships nearly all store items—including perishables and large products—through phone, email, or fax orders, but it does not offer online ordering.