![]() We also use these cookies to understand how customers use our services (for example, by measuring site visits) so we can make improvements. Check out Insider's source guide for other tips on sharing information securely.Īre you a tech-industry employee or do you have insight to share? Contact Ashley Stewart via the encrypted messaging app Signal (+1-42) or email ( ).We use cookies and similar tools that are necessary to enable you to make purchases, to enhance your shopping experiences and to provide our services, as detailed in our Cookie Notice. It's still Day 1, and we're excited about the future of grocery at Amazon," it said.Ĭontact the reporter Eugene Kim via the encrypted-messaging apps Signal or Telegram (+1-65) or email ( ). "Our goal is to build a best-in-class grocery shopping experience - whether shopping in-store or online - where Amazon is the first choice for selection, value, and convenience. The internal document about the new Fresh fee structure reflects Amazon's willingness to keep investing in the Fresh grocery business. During its most recent earnings call, Amazon's CFO Brian Olsavsky said, "Our grocery business continues to grow." Non-Prime members in a dozen metro areas, including Austin, Boston, and San Diego, can also receive grocery deliveries.Īmazon is considering a separate, standalone grocery subscription service for Prime members, as Insider previously reported. "The service fee allows us to keep in-store prices low, while also allowing us to continue to offer a consistent, high quality delivery experience," it said.Īmazon offers grocery delivery to Prime members in more than 3,500 cities and towns across the U.S. The internal document encourages Amazon employees to stick to the same talking point if a customer asks about the delivery fees. At the time, Amazon said the new fees were necessary to keep prices low in its online and physical grocery stores. It's also a swift change from the new fee structure Amazon started imposing in February, indicating the company may have found better cost efficiencies. In 2021, for example, Amazon commanded just 1.2% of the US grocery market, falling way behind Walmart's 25% or Kroger's 8% share, according to Euromonitor. Despite having acquired Whole Foods for $13.7 billion in 2017, Amazon has struggled to expand its grocery business. The move signals Amazon's continued ambitions in the grocery space, even though it's seen very little growth. "Prime membership continues to be an enormous value and this change will save members even more on grocery delivery fees, while also allowing them to enjoy added savings, convenience, and entertainment with Prime," Peters said in a statement. In an email to Insider, Claire Peters, Amazon's worldwide VP of Amazon Fresh, said the change will go into effect Thursday afternoon. As part of that, we continuously test our delivery models to see where we can make adjustments, and recently received positive feedback from customers when we piloted this change in select cities," the document said. ![]() "We're always listening to customer feedback and looking for ways to make shopping for groceries easier, faster, and more affordable. This story is available exclusively to InsiderĪnd start reading now. Account icon An icon in the shape of a person's head and shoulders.
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