Amazon charges a delivery fee for fresh grocery orders under $150

Brendan McDiarmid | Reuters

Amazon It will start charging a delivery fee for fresh groceries orders of less than $150, in a move it said will help keep prices for its services down.

Starting February 28, Prime members who want Amazon Fresh home delivery will be charged a $9.95 delivery fee for orders under $50, while orders between $50 and $100 will incur a $6.95 delivery fee, and orders over It ranges from $100 to $150 and a $3.95 delivery fee, the company said in a note to customers seen by CNBC. Only Prime members can use the delivery service, though anyone can shop at Amazon Fresh for groceries.

Related investment news

CNBC Pro

Amazon Pre-guaranteed Prime members free $139 a year on fresh orders over $35.

“This service fee will help keep prices lower at online and physical grocery stores as we better cover delivery costs for groceries and continue to enable the delivery of a consistent, fast, high-quality delivery experience,” the notice read.

The move follows as did Amazon CEO Andy Jassy I embarked on an extensive review on the company’s expenses amid slowing sales and a deteriorating economic outlook. Amazon laid off 18,000 employees, froze hiring in the company’s workforce, and paused or canceled some projects such as a sidewalk robot and a telehealth service.

Amazon previously recalibrated its approach to online grocery delivery, a notoriously challenging business from a cost and efficiency perspective. In 2021, Amazon added $10 service fee for Whole Foods delivery orders for Prime members, after previously offered at no additional charge.

Watch: How Whole Foods has changed in the five years since Amazon took over

See also  Prosecutors search Deutsche Bank headquarters in money laundering investigation
How Whole Foods has changed in the five years since Amazon took over

Leave a Reply

Your email address will not be published. Required fields are marked *