- Beginning on February 28, Amazon will start charging delivery costs for Fresh groceries orders under $150.
- Only Amazon Prime subscribers who pay $139 a year to join the program can receive fresh grocery delivery.
- According to a notification sent to clients, the online store stated that it is introducing fees to some orders to maintain cheap costs.
will begin assessing a delivery fee for Fresh groceries orders under $150, a move that the company claims will keep the cost of its services low.
In a note to customers seen by CNBC, the company announced that starting on Feb. 28, Prime members who want home delivery from Amazon Fresh will pay a $9.95 delivery fee for orders under $50, a $6.95 delivery fee for orders between $50 and $100, and a $3.95 delivery fee for orders between $100 and $150. The delivery service is only available to Prime members, but anybody may shop at an Amazon Fresh grocery store.
Previously, Amazon promised free delivery on Fresh orders over $35 to subscribers to its $139 per year Prime membership.
The letter explained that “this service fee will assist maintain pricing in our physical and online grocery stores as we better cover grocery delivery costs and continue to enable customers a consistent, quick, and high-quality delivery experience.”
The move coincides with Amazon CEO Andy Jassy’s broad examination of the company’s spending in response to declining sales and a deteriorating economic outlook. Amazon has considered firing 18,000 employees, halted or cancelled canceled initiatives, including a sidewalk robot and a telemedicine service, and stopped hiring its corporate personnel.
Amazon has previously adjusted how it handles the famously difficult from a cost and efficiency viewpoint business of online grocery deliveries. After formerly providing Whole Foods delivery orders to Prime members at no additional cost, Amazon imposed a $10 service fee in 2021.
Amazon Prime members will have to start paying delivery fees on grocery orders under $150
Amazon stated that beginning with orders under $150 for Amazon Fresh groceries, Prime members will have to start paying for delivery.
Previously, Amazon provided free delivery for purchases of groceries totaling at least $35. Delivery will only be free going forward for orders totaling $150 or more.
The decision to increase the grocery delivery fees was announced by Amazon in an email to Prime members. “This service fee will help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to enable offering a consistent, fast, and high-quality delivery experience,” the company wrote.
Spending more money equates to lower delivery fees
Starting on February 28, Amazon will start charging these new delivery fees for Fresh shipments. Customers will be charged for delivery based on the total value of their orders:
- $50 and under orders: $9.95 for delivery
- $50 to $100 in order amounts: $6.95 for shipping
- $100-$150 orders will incur a $3.95 shipping charge.
Currently, Prime members can choose their delivery time from a variety of two-hour periods when placing grocery orders. Despite the adjustments to delivery fees, Amazon will continue to offer consumers the option to extend their delivery window to six hours. The lengthier delivery option also has a lower delivery price for those who choose it.
Consumers have recently been affected by the effects of inflation at the food shop. Grocery expenditures continue to be a huge expense for consumers across the nation, whether it’s the consistently growing price of eggs or how rising vegetable oil costs may affect the prices of other food items.
How Amazon Prime and Walmart Plus compare
In addition to free grocery delivery alternatives, Amazon Prime and Walmart Plus retailer memberships offer a wide range of other advantages, such as quick delivery when you order online for a variety of items with no additional shipping fees. In light of this, it’s crucial to consider which membership features you’ll use in addition to grocery delivery before choosing which to join up for.
In general, Amazon Prime has more benefits than Walmart Plus. The Amazon ecosystem, which includes the Prime Video streaming service, Prime Music streaming, Prime Gaming and Prime Reading, Amazon Pharmacy, Prime Try Before You Buy, and more, is accessible when you join up for Prime. You also get access to the Amazon Prime Day mega sale. In several places around the nation, there are real Amazon shops where you can conveniently shop. But the cost of all these services is higher: Amazon Prime has an annual subscription of $40 more than Walmart Plus. Additionally, paying for the vast streaming and entertainment options may not be necessary if you merely want to use Prime’s online shopping benefits.
Despite having fewer benefits than Amazon Prime, Walmart Plus may be a better match for certain people’s lives, particularly if you intend to buy at Walmart both in-store and online. Benefits of Walmart Plus include discounted gas rates at certain gas stations and mobile Scan & Go, which enables in-store consumers to pay for products as they are added to their shopping cart. Members also get savings at Walmart pharmacies (similar to those offered by Amazon Pharmacy) and a free membership to the streaming service Paramount+ Essential Plan, which is analogous to Prime Video.
It is ultimately up to you to decide whether to join Walmart Plus or Amazon Prime. Remember that both subscriptions have 30-day free trials as well.
Pickup
In certain areas, Prime members may get free food pickup from Whole Foods Market and Amazon Fresh when their purchases exceed the local free pickup threshold. Rush alternatives are subject to additional charges.
In as little as 30 minutes, Prime members in selected cities may choose a pickup location for their purchase and secure an open pickup time window.
Tips
At checkout, you have the option of tipping your delivery person. The whole tip you choose to leave goes to your delivery driver. After delivery, you have up to 24 hours to change the tip you leave. The driver is not given information regarding your tip, such as the amount or who gave it.
About Bag Fees
In certain places, bag fees are mandated by legislation. Bag fees, if applicable, are added to the total item count and are reflected in the tax charges in the Order summary. Based on the quantity of your purchase, we estimate the required number of bags, and we’ll never charge you more than that estimate. We will instantly reimburse you the cash to the payment method used for your transaction if we utilize fewer bags than anticipated.
