Amazon plans grocery fee increase, higher threshold for Amazon Fresh deliveries

Starting February 28, Amazon Fresh is rolling out a new fee structure for grocery deliveries using the Amazon Prime service.

Orders under $50 will be $9.95, orders between $50 and $100 will be $6.95 and orders between $100 and $150 will be $3.95. Only orders over $150 will be included in Amazon Prime’s free delivery. Previously, Prime members received free grocery delivery for orders over $35.  

This follows the 2021 roll back of complimentary Whole Foods deliveries. At that time, the company added a $9.95 fee for the service.

The company said it plans to continue offering two-hour delivery windows, and a reduced fee for longer delivery windows, according to a statement.

“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,” the company said in a statement.  

Amazon Fresh store openings have slowed since the brand’s launch in September 2020. It opened 44 locations in the first two years, but hasn’t opened another new location since September 2022, according to The Information. The company also reportedly has a queue of two dozen “zombie” locations ready to open but not yet in operation.

The company also recently closed its original Amazon Fresh grocery fulfillment location in Seattle.  

Amazon and Whole Foods command an estimated 4 percent of the online grocery market compared to 22 percent for Walmart, according to a UBS research note cited by the L.A. Times.

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