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Amazon will start charging Prime members up to $10 in delivery fees on grocery orders under $150

Amazon Fresh grocery delivery truck from the Amazon Prime service parked on a suburban street in San Ramon, California, July 5, 2018.Amazon Fresh grocery delivery truck from the Amazon Prime service parked on a suburban street in San Ramon, California.

Smith Collection/Gado/Getty Images

  • Amazon is adding delivery fees on all grocery orders under $150, the company announced Friday.
  • “This service fee will help keep prices low in our online and physical grocery stores,” Amazon said on Friday. 
  • The company previously offered free delivery on all grocery orders over $50. 

Amazon is nixing free grocery delivery for Prime users on orders under $150. 

The tech giant announced the change to its Amazon Fresh grocery service in an email sent to Prime users on Friday, writing that orders under $150 will incur delivery charges ranging from $3.95 to $9.95, depending on the size of the order. The new fees go into effect February 28. 

Specifically, Amazon will tack on a delivery fee of $3.95 for orders between $100 and $150, $6.95 for orders between $50 and $100, and $9.95 for orders under $50, per the email. Previously, Amazon Prime members could get free delivery on all orders over $50. 

“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,” Amazon wrote in the email. 

The company said it plans to continue offering two-hour delivery and one-hour pickup for all orders, and will also introduce longer six-hour delivery windows at a lower cost. 

The delivery fee changes come after Amazon opted to pause the rollout of more Amazon Fresh brick-and-mortar retail stores in August after disappointing sales. Sources told The Sunday Times that the company had stalled talks of opening additional stores and paused the search for new locations. 

At the same time, Amazon-owned Whole Foods is hoping to triple the number of stores it opens in 2023, Insider’s Alex Bitter reported. Whole Foods CEO Jason Buechel told industry publication Winsight Grocery Business that though the company opened 11 stores in 2022, he hopes to soon “be opening 30 or more stores a year.”

Read the original article on Business Insider