Amazon Lowers Delivery Fees for AmazonFresh
Amazon.com announced last week that it's doing away with its $299 per year Prime Fresh subscription fee for its AmazonFresh grocery delivery service. Amazon will now begin charging $14.99 per month, available only to Amazon Prime members. AmazonFresh is Amazon's grocery service that offers unlimited same-day delivery of both perishable and nonperishable groceries in several markets. Under this new fee structure, orders below $40 come with an additional $9.99 delivery fee, but orders above $40 don’t have a delivery fee.
Total Retail's Take: For the better part of the last decade, Amazon Fresh has been an enigma. Amazon (and its customers) weren't sure what to do with the program. The company, for example, experimented with different pricing, delivery and subscription approaches over the years, and the roll out of the $299 subscription fee last year sparked a backlash from long-time customers. However, this change to its pricing has made clear that Amazon is indeed very serious about the grocery business and could be a sign that Fresh is poised for more aggressive expansion.