Amazon Lowers Threshold for Free Grocery Delivery
Amazon has lowered the threshold for free grocery delivery about seven months after raising it.
Shoppers with a Prime membership can now get free Amazon Fresh grocery delivery on orders over $100, the company said in a Thursday (Oct. 5) press release.
Amazon had raised the threshold for free grocery delivery to $150, effective Feb. 28, PYMNTS reported in January. Before that increase, Prime members could get free delivery on orders of $35 or more.
In a statement provided to PYMNTS at the time, an Amazon spokesperson attributed the introduction of the service fee to a need to better cover grocery delivery costs and ensure a quality delivery experience.
When announcing the new, lower threshold on Thursday, the company said in the press release: “We’re always looking for ways to make grocery shopping easier, faster and more affordable for our customers and this enhanced benefit does just that.”
The company added that this joins other perks offered to Prime members when shopping for groceries, including a 10% discount on hundreds of items when shopping in-store at Amazon Fresh.
PYMNTS Intelligence has found that consumers have been pivoting to buy online, pickup in store (BOPIS) options as delivery fees rise.
More merchants have been either removing free shipping as an option or raising the minimum spend needed to qualify. Given these parameters, consumers seeking to cut extra costs may easily be skipping delivery charges by opting for BOPIS or curbside pickup as a convenient middle ground between delivery and in-store shopping, according to the “2023 Global Digital Shopping Index,” a PYMNTS and Cybersource collaboration.
In another recent move involving delivery fees, Amazon cancelled a planned fee on third-party merchants who use its Seller Fulfilled Prime program but don’t use its shipping services.
The planned fee was announced in August and set to take effect Oct. 1, but was canceled in September in response to merchant feedback.
In a statement provided to PYMNTS at the time of the cancellation, Amazon said: “The 2% Seller Fulfilled Prime fee was intended to cover our costs, but after careful consideration we’ve made the decision not to implement this program fee to ensure seller sentiment related to the fee does not impact program participation.”
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