Amazon Fresh has just announced that, effective February 28, it will be raising the threshold for free grocery delivery. Orders under $50 will be charged a $9.95 fee. Orders between $50 and $100 will be charged a $6.95 fee. And orders between $100 and $150 will be charged a $3.95 fee. Orders above $150 will be free. Previously, the threshold for free delivery was $35.
This is likely an indication of two things. It speaks to our current tech headwinds (see “The Four Horsemen of the Tech Recession“) and it speaks to the fact that grocery is unique. It requires a whole separate logistics chain, compared to all of the other things that Amazon will deliver to you. Food goes bad. It bruises. And it may require refrigeration.
This makes online grocery delivery more challenging and more costly.