Amazon Fresh will start charging delivery fees for orders under $150 at the end of next month, saying it will keep prices low.
Amazon Fresh, a subsidiary of Amazon (AMZN-US), allows users to buy produce, meat, seafood, dairy, eggs, household cleaning and personal care on its website.
Starting from February 28th, when Prime members want to use the home delivery service after shopping for Amazon Fresh, they will be charged according to the order amount. Orders less than $50 will incur a shipping fee of $9.95, and orders between $50 and $100 will be charged. Pay $6.95 for shipping, compared to $3.95 for orders of $100 to $150. While anyone can shop on Amazon Fresh, only Prime members can use the home delivery service.
Amazon previously guaranteed that Prime members with an annual fee of $139 can enjoy free shipping on fresh orders over $35.
The notice issued by Amazon Fresh pointed out that the increase in the Prime free shipping threshold will help maintain low prices for online shopping and physical stores, because the company can better deal with the cost of grocery delivery and continue to provide a consistent, fast and high-quality delivery experience.
The move comes after Amazon Chief Executive Andy Jassy launched a broad review of company spending in response to slowing sales and a worsening economic outlook. Amazon has planned to cut 18,000 jobs, freeze hiring and suspend or cancel projects such as sidewalk robots and telemedicine services.
In 2021, Amazon will also increase the delivery fee for Prime members’ Whole Foods orders by $10, which was previously free of charge.
