Amazon increases the minimum purchase amount on Amazon Fresh for Prime members

Amazon is scrapping free grocery delivery for Prime members on orders under $150 (around Rs 12,200).

Customers who have their groceries delivered by Amazon Fresh – and pay less than $150 – will be charged between $3.95 (around Rs. 350) and $9.95 (around Rs. 800), depending on the size of the order, a the company said in an email to First Members on Friday.

The new policy begins on February 28.

“We will continue to offer convenient two-hour delivery windows on all orders, and customers in certain regions will be able to select a longer six-hour delivery window for a reduced rate,” Amazon said in the e-mail. mail.

Launched in 2005, Prime has over 200 million members worldwide who pay $139 (approximately Rs 11,500) per year, or $14.99 (approximately Rs 1,200) per month, for faster shipping and other benefits, such as free delivery and returns.

Currently, the company offers its members free grocery deliveries on orders over $35 (around Rs 3,000), except for New York, where it’s $50 (around Rs 4,000).

Under the new policy, the company said the delivery charge will be $3.95 for orders between $100 and $150, $6.95 (about Rs.600) for orders of $50 at $100 and $9.95 for orders under $50. Amazon Fresh deliveries over $150 will remain free.

“We are introducing a service charge on select Amazon Fresh delivery orders to help keep prices low at our online and physical grocery stores as we better cover grocery delivery costs and continue to provide a consistent delivery experience, fast and high quality,” Amazon spokeswoman Lara Hendrickson said in a prepared statement.

The company has dozens of Amazon Fresh stores in the United States and has opened some overseas. Amazon has also owned Whole Foods since 2017.

The decision to impose new fees comes as the company tries to cut costs in an uncertain economic environment. In recent months, it has cut unprofitable areas of its business and suspended the hiring of its employees. It announced this month that it would lay off 18,000 workers.