Amazon Fresh, the retail giant's online and physical grocery store, is raising the amount Prime members must spend in order to qualify for free grocery delivery. Starting Feb. 28, grocery orders under $150 with a two-hour delivery window will include a service fee. Previously, orders over $35 to $50, depending on the area, qualified for free delivery.
This new service fee will "help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs," Amazon said in an email sent to Prime members on Friday.
The service fee will vary depending on how much Prime members spend. With a two-hour delivery window, Amazon Fresh will charge a service fee of $3.95 for orders of $100 to $150, $6.95 for orders $50 to $100 and $9.95 for orders under $50. Amazon said customers in some areas will be able to select a six-hour delivery window and "receive a reduction in fees."
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Prime members near a physical Amazon Fresh store can still get free one-hour pickup on grocery orders.
Amazon Fresh is included with a Prime membership of $15 a month or $139 a year. The online store offers items found at most local grocery stores, including fresh fruit and vegetables, meats, canned goods and pantry staples. In addition to the online store, there are more than 40 physical Amazon Fresh stores across the country open to anyone. Several of the physical locations use Amazon's cashierless checkout technology.