Amazon offers Prime members free grocery delivery on orders under $150.
Customers who order groceries delivered from Amazon Fresh – and pay less than $150 – will be charged between $3.95 and $9.95, depending on the size of the order, the company said in an email to Prime members on Friday.
The new policy takes effect on February 28.
“We will continue to offer a convenient two-hour delivery window for all orders, and customers in some regions will be able to choose a longer, six-hour delivery window at a lower cost,” Amazon said in the email.
Launched in 2005, Prime has more than 200 million members worldwide who pay $139 a year, or $14.99 a month, for faster shipping and other perks, such as free shipping and returns.
Currently, the company offers members free grocery delivery on orders above $35, except for New York, where it costs $50.
Under the new policy, the company says delivery fees will be $3.95 for orders between $100-$150, $6.95 for orders between $50 and $100, and $9.95 for orders under $50. Amazon Fresh delivery over $150 will remain free.
“We’re introducing a service fee on some Amazon Fresh delivery orders to help keep prices low at online and physical grocery stores as we cover the cost of grocery delivery and continue to provide a consistent, fast, and quality delivery experience,” Amazon spokeswoman Lara Hendrickson said in a statement. be prepared.
The company has dozens of Amazon Fresh stores in the US and has opened several overseas. Amazon has also owned Whole Foods since 2017.
The decision to implement the new charges comes as the company tries to cut costs in a bleak economic environment. In the past few months, it has eliminated unprofitable business areas and laid off employees among the company’s workforce. They said this month they would cut 18,000 jobs.
Learn how to navigate and build trust in your business with The Trust Factor, a weekly newsletter that examines what leaders need to succeed. Log in here.