Amazon Fresh, the grocery subsidiary of Amazon, is changing its delivery fee policy due to the rise in inflation and consumer prices. As more Americans continue to shop from home, companies are finding ways to make their delivery models work. To this end, Amazon Fresh has announced that it will increase the minimum spend for free delivery by over four times the current amount.
Based on a report by AP News on January 27, 2023, starting on February 28th, Amazon Fresh members will need to spend at least $150 to get their orders delivered for free. The new delivery rates are as follows: $9.95 for orders under $50, $6.95 for orders between $50 and $100, and $3.95 for orders between $100 and $150.
Currently, Amazon Fresh offers free delivery to Prime members for orders over $35, except in New York, where orders over $50 come with free delivery. Amazon has over 200 million Prime members worldwide who pay $139 a year or $14.99 a month for shopping and shipping perks.
The increase in delivery fees is aimed at covering the cost of grocery delivery and keeping prices low while cutting operating costs by 18,000 job cuts. The two-hour delivery window will be maintained, and cheaper delivery options, including a 6-hour delivery window for a reduced fee, will be introduced in some areas, as reported by Go Banking Rates on January 30, 2023.
Amazon is introducing a service fee for some Amazon Fresh delivery orders to cover delivery costs and maintain low prices in their grocery stores while providing fast and high-quality delivery.