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If You Use Amazon Fresh, You Need to Know About Changes to Its Delivery Charges



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What happened

Amazon Prime is getting rid of its free delivery on Amazon Fresh orders of over $35. The threshold for free delivery will increase to $150 from Feb. 28. According to an email from the online retail giant, Amazon will now charge as much as $9.95 for deliveries, depending on the order amount.


So what

Some households, particularly smaller ones will have trouble spending $150 in one go to meet the new free delivery threshold. Moreover, spending almost $10 for a delivery of less than $50 would mean spending more than 20% of the total cost. This could be a significant hit to your bank account balance and may not be worth it, particularly on top of the Prime membership of $14.99 a month.

Here’s how the new Amazon Fresh delivery charges break down:

  • $9.95: Orders under $50
  • $6.95: Orders of $50 to $100
  • $3.95: Orders of $100 to $150
  • Free: Orders over $150

Now what

One of the best ways to handle the economic uncertainty we currently face is to strengthen your financial foundations. Every dollar you save on groceries is a dollar you can put into your savings account or use to pay down debt.

If you don’t regularly spend $150 on Amazon Fresh orders, here are some steps you can take.

  • Consider whether your Amazon Prime membership is worth it: Amazon Prime brings various benefits, including free shipping on certain items and access to its streaming services. Review your recent activity to see what perks you use and what value they give you. If you mainly use it for Amazon Fresh and the current free delivery, it might be time to look elsewhere.
  • Look for ways to reduce the number of orders you make: One way to save money on grocery shopping is to make fewer trips to the store, whether that’s online or in person. Might you be able to do a monthly Amazon Fresh shop that totals $150? As long as you have space to store purchases and will use them before they go bad, bulk buying could help you reduce costs and avoid delivery charges.
  • Look for cheaper delivery options: Amazon Fresh is far from the only grocery delivery service out there. Head online and do your own price comparison to find out what your groceries might cost at other retailers. For example, Walmart+ charges $12.95 a month and includes free delivery on orders of $35 or more.
  • See if it would be cheaper to shop in store: Online shopping is convenient and can save both time and money. It is easier to avoid buying things you don’t need (or already have) and there are often great bargains. However, there are advantages to in-store shopping too. Not only can you skip the delivery fees, you might find lower prices and extra special offers when you go in person.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Emma Newbery has positions in The Motley Fool has positions in and recommends and Walmart. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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