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As more Americans continue to shop from home, while extremely high inflation and consumer prices impact earnings, companies are constantly figuring out ways to make their delivery models work. Amazon Fresh, the retail giant’s grocery subsidiary, has announced it will more than quadruple the amount he currently spends to qualify for free shipping.
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Beginning February 28, Amazon Fresh members must pay at least $150 for free delivery on their orders. According to Seeking Alpha, the new shipping rates will be $9.95 for orders under $50, $6.95 for orders between $50 and $100, and $3.95 for orders between $100 and $150.
Amazon Fresh is now offering free delivery to Prime members on orders over $35. However, in New York we offer free delivery on orders over $50. According to CBS, Amazon has more than 200 million Prime members worldwide, who pay $139/month/$14.99/month for shopping and shipping benefits.
“In order to better cover grocery delivery costs and provide a consistent, fast, high-quality delivery experience, some Amazon Fresh is introducing a service fee for delivery orders, Amazon spokesperson Lara Hendrickson said in a statement to The Verge.
The move comes as Amazon continues to cut operating costs, after announcing 18,000 job cuts earlier this year. According to CNBC, the company initially considered laying off about 10,000 employees.
Amazon has promised to maintain a two-hour window for deliveries, but it plans to introduce cheaper options.
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“We will continue to offer a convenient 2-hour delivery window on all orders. Customers in some regions may choose a longer 6-hour delivery window at a discounted rate,” Amazon said in a statement. .
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