Amazon CEO Andy Jassy’s stated goal has been to “double down” on the company’s grocery business, and just how that will be accomplished is becoming clearer. The most notable change? The retailer is now offering grocery delivery services to non-Prime members in the U.S.
Amazon Fresh sent an email to customers noting that non-Prime members in 12 key markets will be able to get an assortment of national brands, local brands and private label brands delivered right to their doorstep at the same low prices. For this first launch phase, the service will be available in Austin, Texas; Boston; Charlotte, N.C.; Dallas-Fort Worth, Texas; Denver; Nashville, Tenn.; Phoenix; Portland, Ore.; Richmond, Va.; Sacramento, Calif.; San Diego and San Francisco.
Both Prime and non-Prime members will have two-hour delivery windows for all orders, and customers in certain markets will be able to select longer delivery times for a reduced fee. However, Amazon Fresh has established some key differences to reaffirm the value of having a Prime membership.
Most notably, delivery service fees for non-Prime members are $7.95 for orders over $100, $10.95 for deliveries in the $50 to $100 range, and $13.95 for deliveries under $50. Pickup orders are free from select metro areas. Prime members will be charged service fees of $3.95 for Amazon Fresh grocery delivery orders in the $100 to $150 range, $6.95 for deliveries of $50 to $100 and $9.95 for deliveries under $50. Prime members also will continue to receive free grocery delivery on orders of more than $150.
“We’re always looking for more ways to make grocery shopping easy, fast, and affordable for all of our customers, and are excited to offer Amazon Fresh grocery delivery to customers without a Prime membership in a dozen U.S. cities,” said Claire Peters, Worldwide Vice President of Amazon Fresh in a statement. “Now even more Amazon customers can benefit from our high-quality grocery experience, with Prime members continuing to save on grocery delivery fees and through exclusive savings on hundreds of items in-store.”
Amazon Fresh’s Revamped Store Design Doubles Down on Convenience
Amazon Fresh also has unveiled a new store experience in its Schaumburg and Oak Lawn, Ill., stores. The goal was to provide an expanded selection and updated checkout options that provide more convenience to consumers.
Featuring more than 1,500 new national and private label products, the revamped store experience is curated with an expanded assortment of international foods and grab-and-go products (including a Krispy Kreme shop-in-shop). The store also features the latest version of the Dash Cart, the smart shopping cart designed to help consumers discover new items, find deals and skip long checkout lines, as well as a new self-checkout installation.
What’s Next in Amazon’s Grocery Overhaul?
Amazon’s 2017 acquisition of Whole Foods was seen at the time as the behemoth’s big move into grocery, especially given its $13.7 billion price tag. But six years later, the company is still struggling to find its footing and establish a profitable omnichannel model, and so it is overhauling its approach.
For example, although Amazon operates 44 Amazon Fresh stores across the U.S., new builds were put on an indefinite hold and some stores were shuttered. Additionally, hundreds of Amazon Fresh “zone leads” who manage sections of individual stores were laid off just last week. It also has been a tough few months for Amazon Go, which announced this spring that it would close eight of its convenience stores and pause all future expansion plans.
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