Amazon increases fees on grocery delivery

Free grocery delivery from Amazon Fresh will now only be available on orders where customers spend more than $150.
An Amazon Fresh store.
  • Amazon Prime customers will incur more fees on groceries delivered through Amazon Fresh.
  • Free delivery will be available for customers who spend more than $150. It was previously available on orders more than $35.
  • The retailer will maintain a two-hour delivery window and in some areas offer a six-hour window for a reduced fee. 

Amazon Prime customers, who order groceries from its grocery offshoot Amazon Fresh, will now face more delivery fees. 

In a Jan. 27 email to customers, Amazon detailed the new pricing scheme. Under the new guidelines, free grocery delivery will be available to consumers who spend more than $150 in a single order. For orders between $100-$150, Amazon Fresh will impose a $3.95 delivery fee, a $6.95 fee for orders between $50-$100 and a $9.95 fee for orders less than $50. 

Previously, free delivery from Amazon Fresh was available to customers whose order total reached $35. 

“This service fee will 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 email to consumers said.

Amazon said it would continue to offer two-hour delivery on all orders, though the company said it would in some regions offer a longer six-hour delivery window for a reduced fee, which was not disclosed in the Jan. 27 message to customers. One-hour grocery pickup, where available, will remain free, the retailer said.

The increased fees are the latest indication that Amazon is looking to reduce costs across its businesses. Other measures include the planned elimination of more than 18,000 roles this year and Amazon’s sunsetting of its AmazonSmile charity program, as Retail Leader previously reported. 

Amazon’s Prime membership costs consumers $14.99 per month or $139 per year. The cost was last raised by the retailer last year by $20 from its previous cost of $119 per year. The Amazon Fresh concept first appeared in early 2020, and it includes physical storefronts and online ordering. Amazon also owns the popular Whole Foods Market grocery chain, which stopped offering free delivery to Prime customers in 2021.