Amazon is rolling out a new subscription plan for Prime members who order groceries.
Under the new program, Prime members can opt in for unlimited grocery deliveries at $9.99/month. This means that members will receive their grocery deliveries over $35 with no extra delivery fees or charges.
Additionally, with this new grocery plan, Prime members will get unlimited access to pick up grocery orders of any size.
Right now, the program has launched in Columbus, Ohio, Sacramento, Calif., and Denver. Based on how these cities fare with the new program, and depending on Prime members’ feedback to the company, this will determine how Amazon moves forward with unrolling this option to more cities across the country.
“We’re always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond,” Tony Hoggett, senior vice president of worldwide grocery stores for Amazon, said in a statement.
Still paying for a Prime membership
While the new plan for Amazon groceries will help consumers save some money on delivery fees, the monthly subscription fee comes in addition to the Prime membership fee.
So, Prime members will have to pay the $9.99 per month for unlimited grocery deliveries with no delivery fees, and then either $14.99 a month or $139 a year for their Prime membership.
“Amazon Prime, known for its annual fee of $139, has set a standard for seamless and cost-effective shopping, offering free Prime shipping on any order without the constraints of a minimum spending requirement,” Yoni Mazor, CEO of Getida.com, told ConsumerAffairs. “Introducing a dual-layered cost structure for grocery subscriptions may, however, be a tough sell for consumers accustomed to the simplicity of a single, comprehensive fee.
“Amazon stands at a crossroads with its grocery subscription service,” Mazor continued. “To ensure widespread acceptance and customer satisfaction, the company should consider adopting a more value-centric packaging strategy. By focusing on delivering a seamless experience and incorporating additional perks, Amazon can steer clear of the pitfalls associated with layering costs and secure a competitive edge in the ever-expanding world of online grocery shopping.”
The evolution of Amazon grocery delivery pricing
Over the course of this year, Amazon’s grocery delivery pricing has gone through an evolution.
In January of this year, Amazon upped its order minimum for all grocery order delivery fees – from $35 to $150. On top of that, the delivery fee was dependent on how much consumers spent on Amazon Fresh – the bigger their orders were, the less expensive the delivery fees were.
Then, in August, Amazon opened up grocery deliveries to non-Prime members. While those without Prime memberships had access to Amazon grocery orders, their delivery fees were even higher than Prime members’ – between $7.95 and $13.95 just for delivery.