Amazon Fresh will charge shipping on orders under $150

 

 

 

Amazon Prime members who use Amazon Fresh, the company’s grocery delivery service, will soon charge more for their standard shipments. The company is set to start charging delivery fees on all grocery orders under $150 on Feb. 28, 2023, according to an email sent to Amazon Prime members seen by Gizmodo.

The next tiered fee schedule will charge $9.95 for two-hour delivery for orders under $50, $6.95 for orders between $50 and $100, and $3.95 for orders between $100 and $100. $150. After $150, shipping will remain free. Customers in certain regions will be able to get a discount on delivery charges by opting for a longer delivery window of six hours instead of the usual two.

“These service fees will help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to provide a consistent, fast and high-quality delivery experience,” wrote the company in its email to customers, and an Amazon spokesperson reiterated in an emailed statement to Gizmodo.

Previously, Amazon billed $14.99/month, in addition to the monthly or annual cost of Prime subscription, for its grocery service. But in 2019, the company scrapped that additional membership cost, making the service free for all Prime members, with the small caveat of a minimum order ($35 in most of the US, $50 in New York).

Clearly, however, the decision to reduce customer costs was not intended to last. Instead of reinstating general subscription fees, the company opted instead for delivery billing, presumably in opposition to the central idea from Amazon Prime. Prime membership itself had a price increase last year, going from $119 to $139 annually. If the mega e-tailer’s customers regularly place grocery orders under $150, Amazon Fresh will easily become more expensive than it was before 2019.

Amazon started selling groceries online in 2007. Ever since grocery delivery became an increasingly crowded business landscape, full of start-ups and established tech companies pivoting in the game. One of Amazon Fresh’s main competitors, Instacart, exploded in popularity at the height of the covid pandemic. Yet in recent months online grocery sales declined.