Amazon Axes Free Grocery Delivery On Prime Orders Under $150

NEW YORK – Amazon is discontinuing free grocery delivery for Prime members on orders under $150.

Customers who order groceries from Amazon Fresh and pay less than $150 will be charged between $3.95 and $9.95, depending on the order size, according to an email sent to Prime members on Friday.

The new policy goes into effect on February 28.

“We will continue to offer convenient two-hour delivery windows for all orders, and customers in some areas will be able to choose a longer, six-hour delivery window for a lower fee,” Amazon said in an email.

Prime, which debuted in 2005, has over 200 million members worldwide who pay $139 per year, or $14.99 per month, for faster shipping and other benefits such as free delivery and returns.

Many Use The Free Delivery Option

Currently, the company offers free grocery deliveries to members on orders over $35, except in New York, where the fee is $50.

According to the new policy, delivery charges will be $3.95 for orders between $100 and $150, $6.95 for orders between $50 and $100, and $9.95 for orders under $50. Amazon Fresh deliveries over $150 will continue to be free.

A spokesperson for Amazon, Lara Hendrickson, said, “We’re adding a service fee to some Amazon Fresh delivery orders to help keep prices low in our online and physical grocery stores, better cover grocery delivery costs, and continue to be able to offer consistent, fast, and high-quality delivery.”

Amazon Fresh has dozens of locations in the United States and has expanded internationally. Since 2017, Amazon has also owned Whole Foods.

The company has decided to charge new fees because the economy is uncertain and it needs to cut costs. It has recently cut unprofitable areas of its business and paused hiring among its corporate workforce. It announced this month that it would lay off 18,000 employees.

SOURCE – (AP)