WASHINGTON (DC News Now) — Amazon announced they will soon impose fees for many grocery deliveries for Prime users, as the retailer adjusts operations — including thousands of job cuts — amid an uncertain economic outlook.
Prime customers will be charged $9.95 for each order under $50 starting February 28, the company said, adding that orders between $50 and $100 will incur a $6.95 fee. Customers ordering between $100 and $150 will see a $3.95 fee per purchase.
Purchases over $200 will reportedly not be charged an additional fee.
Consumers spend between $125 and $200 on average for each grocery trip, according to a recent survey by Drive Research; indicating young spenders and people who do not enjoy shopping that use home grocery delivery services the most.
While more people utilized home delivery services throughout the initial months of the pandemic, the Drive Research survey indicated that 69% of consumers still shop inside grocery stores.
“It’s useful for some people, though, like some people that can’t drive or don’t want to drive,” Nat Robinson said outside a Prince George’s County, Maryland Giant store Monday.
Tracy Smalls said, “My daughter purchases vegetables and fruits [through delivery services], that is not the best that’s picked all the time. … I prefer to touch, I’m a touchy person. I want to make sure it’s right.”
Despite the new Amazon fees, Walmart maintains subscribers of their Walmart+ program will not see delivery fees, however, the service does come at a monthly and annual cost — $12.95 monthly, and $98 annually.
Other grocery delivery services offer different prices and services.
Thrive Market offers natural and organic foods, and their fees are less than the Walmart+ subscription, saying monthly subscriptions cost $12 for grocery orders or $59.95 annually.
Instacart charges $3.99 for same-day delivery for purchases over $35, and prices vary; an order from Kroger ‘powered by Instacart’ costs $9.95.
“I used to use Instacart… I don’t like the extra fees that you have to pay, just to get groceries delivered,” shopper London Simmons told DC News Now.