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Amazon is tacking on new service fees for Prime members who get less than $150 worth of groceries via the company’s Amazon Fresh delivery service.
In an email to customers, Amazon said it will start adding delivery charges of $3.95 for orders between $100-$150; $6.95 for orders between $50-$100; and $9.95 for orders under $50.
Prime members in select areas previously received free delivery on any orders over $35.
“We’re introducing a service fee on some Amazon Fresh delivery orders to 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,” an Amazon spokesperson said in an emailed statement.
The new fees, which are on top of the $140 annual Prime membership, will go into effect starting Feb. 28.
Amazon operates dozens of Fresh grocery stores in the U.S. and got into grocery delivery in 2007. The tech giant acquired Whole Foods in 2017 as it dramatically expanded its push into the grocery space. In 2021, Amazon added a $9.95 fee to Whole Foods delivery orders, which were previously free to Prime members who spent more than $35.
Amazon said in its email to customers that it will continue to offer two-hour delivery windows for all orders, and customers in some areas will be able to select a longer delivery window for a reduced fee.
The new fees come as Amazon looks to trim expenses. The company is laying off 18,000 people, or about 5% of its corporate workforce, and shutting down various services.
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