Brendan McDermid | Reuters
Amazon will begin charging delivery fees for Fresh grocery orders under $150, in a move it says will help keep prices for its service low.
Starting February 28, Prime members who want home delivery from Amazon Fresh will incur a $9.95 delivery fee for orders under $50, while orders from $50 to $100 will include a $6.95 delivery fee, and orders between $100 and $150 will have a $3.95 delivery fee, the company said in a note to customers seen. by CNBC. Only Prime members can use the delivery service, although anyone can shop at Amazon Fresh groceries.
Amazon previously guaranteed Prime members $139 a year free shipping on New orders over $35.
“This service fee will help keep prices low in our physical and online grocery stores as we better cover grocery delivery costs and continue to enable a consistent delivery experience.” , fast and high quality,” the announcement states.
The move comes as Amazon CEO Andy Jassy has embark on an extensive review company costs amid slowing sales and a worsening economic outlook. Amazon has its eye on laying off 18,000 employees, freezing the company’s workforce hiring and pausing or canceling some projects like sidewalk robots and telemedicine.
Amazon has previously reframed its approach to online grocery delivery, a business notoriously challenging from a cost and efficiency perspective. In 2021, Amazon more $10 service fee on Whole Foods delivery orders for Prime members, after offering them free before.
CLOCK: How Whole Foods Has Changed Five Years After Amazon Takeover
