Amazon (which is founded by Jeff Bezos) is trying out a new grocery subscription for Prime members. The company announced this on Thursday, and it’s a way for them to make some changes to how they offer groceries online.
If you’re a member of Amazon’s Prime program, you can choose to pay $9.99 each month. In return, you’ll get unlimited grocery delivery from Whole Foods and Amazon Fresh for orders over $35. You’ll also be able to pick up your orders in just 30 minutes, no matter the size of the order. This service is starting in Denver, Colorado; Sacramento, California; and Columbus, Ohio.
Tony Hoggett, who heads Amazon’s physical stores business, mentioned in a statement, “We’re always trying out new features to make shopping simpler, quicker, and more affordable. We’re eager to see how members respond to this offer.”
Amazon’s Innovations in Grocery Services
Amazon believes that Prime members will be willing to pay an extra monthly fee for the convenience of having fresh food delivered to their doorstep without dealing with annoying delivery fees.
A Prime subscription in the U.S. costs $139 per year or $14.99 per month, and it comes with benefits like fast, free shipping and access to video streaming. The new grocery subscription add-on could encourage Prime members to place larger and more frequent food orders.
Amazon has adjusted the minimum order amount for free delivery on Fresh and Whole Foods orders in response to increasing costs. In October, the company decreased the threshold for free Fresh grocery delivery from $150 to $100, compared to previous months. Additionally, in 2021, Amazon implemented a $10 service fee for Whole Foods delivery orders for Prime members.
Before these fee adjustments earlier this year, Amazon provided free Amazon Fresh grocery delivery on orders exceeding $35 without any additional cost for Prime members.
Amazon has been committed to establishing itself as a go-to grocery store for shoppers. After acquiring Whole Foods Market in 2017 for $13.7 billion, the company has introduced its own chain of Fresh supermarkets.
Recently, it has also worked towards integrating its online and physical grocery operations while reaching out to a wider range of consumers. Just last month, Amazon expanded Fresh grocery delivery to people without a Prime membership across the entire U.S., following a successful test of the feature in a few cities. Moreover, Recently Amazon is introducing its first buy now, pay later checkout option on their website.
Amazon’s introduction of a new grocery subscription underscores its ongoing commitment to enhancing the shopping experience for Prime members. By offering convenient and flexible delivery options, the company aims to cater to diverse consumer needs and solidify its position as a leading grocery destination.