Retail Dive: Amazon Fresh Raises Minimum Order to Qualify for Free Delivery

(Image Source: Roger Green/ Wikimedia Commons)

Amazon Fresh just announced that its Prime members will need to make a greater order to be eligible for free grocery delivery, effective 28 February 2023. 

Previously, Prime customers only needed to buy a minimum of $35 of groceries to enjoy free delivery service. According to the new delivery fee structure, consumers will now have to pay a delivery fee of $9.95 for orders under $50; $6.95 for orders from $50 to $100; $3.95 for orders between $100 and $150, and free for orders above $150. In other words, the threshold for free delivery has more than quadrupled. 

The trusted source of e-commerce logistics data insights

Sign up for free!

JOIN US

This move of Amazon Fresh reflects the harsh truth of economical regression that makes grocery properties suffer from cost mounts and slow growth, amid ongoing inflation. With this new policy, Amazon Fresh is trying to improve online grocery profitability:

“We’re introducing a service fee on some Amazon Fresh delivery orders to help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to enable offering a consistent, fast, and high-quality delivery experience,” an Amazon spokesperson said in an email. “We will continue to offer convenient two-hour delivery windows for all orders, and customers in some areas will be able to select a longer delivery window for a reduced fee.”

Amazon Fresh started delivering groceries in 2007 and has more than 40 stores. However, with the ongoing slowdown in e-commerce growth, the launch of new Amazon Fresh stores seems to be put on hold. There has not been any new location of Amazon Fresh since September last year.  

Source: Amazon Fresh raises its threshold for free delivery to $150

For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.