Amazon is anticipating that those enrolled in Prime will be eager to subscribe for a separate fee every month in order to take advantage of unlimited grocery deliveries on selected orders. A pilot service is offering Prime members in three cities the ability to pay a fee of $9.99 per month to obtain free Fresh and Whole Foods deliveries with orders that are over $35. Over recent years, the firm has tweaked its cost free grocery delivery limit in the face of rising costs.
Amazon declared Thursday that it is conducting a trial of a new grocery subscription for Prime users. Said subscription costs $9.99 per month and allows Prime members to have unrestricted grocery delivery from Whole Foods and Amazon Fresh on orders over $35. It is also giving them the option of collecting their orders within 30 minutes, no matter the size. The trial is presently being implemented in Denver, Colorado; Sacramento, California; and Columbus, Ohio. Tony Hoggett, who presides over Amazon's physical stores, commented in a statement that they “are continuously experimenting with features to make shopping more convenient, quicker, and affordable, and we look forward to hearing from the members who take advantage of this offer.”
Amazon's hope is that Prime consumers will be ready to pay a recurring fee for fresh food deliveries without any additional charges. In the United States, a Prime subscription charges $139 per year or $14.99 per month and includes fast shipping and video streaming. With the grocery subscription addon, this could prompt bigger and more frequent food orders by Prime customers. Recently, Amazon adjusted its free delivery threshold for Fresh and Whole Foods orders. In October, the company lowered the minimum order of Fresh grocery delivery to $100, after raising it to $150 months earlier. At the start of this year, the company began to levy a $10 service fee for Prime members on Whole Foods delivery orders. Preceding those changes, you got free delivery on Fresh orders over $35 as a Prime member, with no extra cost. Amazon has been putting a lot of effort into establishing itself as a dependable grocery shopping source. Since it acquired Whole Foods Market for $13.7 billion in 2017, it has launched its own Fresh supermarket chain and recently taken steps to combine its online and physical grocery businesses, while targeting a larger consumer base. Last month, Fresh grocery delivery was extended to all US citizens, by Amazon, even those without Prime, after testing the service in some cities.
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