Amazon said it is adding fees to some orders so that it can keep prices low, according to a notice sent to customers.
will start charging delivery fees for Fresh grocery orders that are less than $150, in a move it said will help keep prices low on its services.
Beginning Feb. 28, Prime members who want home delivery from Amazon Fresh will incur a $9.95 delivery fee for orders below $50, while orders between $50 and $100 will include a $6.95 delivery fee, and orders between $100 and $150 will have a $3.95 delivery fee, the company said in a note to customers viewed by CNBC. Only Prime members can use the Amazon Fresh delivery service, although anybody can shop at an Amazon Fresh grocery store.
"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 notice stated.of the company's expenses as it reckons with slowing sales and a worsening economic outlook.
Amazon has previously recalibrated its approach to online grocery deliveries, a business that is notoriously challenging from a cost and efficiency perspective. In 2021, Amazon a $10 service fee for Whole Foods delivery orders to Prime members, after previously offering them for no extra charge.
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