Amazon has extended its Fresh grocery delivery to non-Prime customers in select US cities, marking a shift in its grocery service strategy.
- This expansion allows non-Prime customers in San Francisco, Boston, Nashville, and Austin to access Amazon Fresh delivery.
- Fees for non-Prime deliveries range from $7.95 to $13.95, depending on the order amount.
- Previously, Amazon Fresh deliveries were exclusive to Prime members, who pay an annual fee of $139.
- Amazon plans to roll out more changes in its grocery business, including broader availability of Fresh delivery.
Amazon has made a significant change by extending its Fresh grocery delivery service to non-Prime members, initially in select US cities including San Francisco, Boston, Nashville, and Austin. This move is part of Amazon’s ongoing strategy to broaden its customer base within the grocery sector.
The new fee structure for non-Prime customers includes a delivery charge of $13.95 for orders under $50. For orders between $50 and $100, the charge is reduced to $10.95, while orders over $100 will have a delivery fee of $7.95. This pricing strategy aims to make Fresh delivery more accessible, though it retains a financial benefit for larger orders.
Previously, this service was exclusive to Prime members, who are required to pay a membership fee of $139 per year, allowing them access to various benefits beyond Fresh delivery. By opening up Fresh delivery to non-Prime customers, Amazon is removing barriers to entry and potentially increasing its market share in the grocery industry.
In addition to this expansion, Amazon has communicated its plans to introduce further changes to its grocery offerings, such as making Fresh delivery available nationwide and integrating products from Whole Foods and other grocers into the service. This indicates Amazon’s intention to strengthen its position in the grocery market and enhance its delivery infrastructure.
Amazon’s CEO, Andy Jassy, has also announced a pause in the expansion of brick-and-mortar Fresh and Go stores until a more profitable format is identified. This decision followed the closure of three Fresh convenience stores in the UK, specifically in Ealing, Wandsworth, and East Sheen. The company is focusing on formats that align with customer expectations and economic viability.
Amazon’s strategic adjustments in its grocery delivery and store formats highlight its commitment to adapting and growing within the competitive grocery market.
