In other words, they're paying for their groceries like everyone else.
Actually, that is a bit misleading, because they still pay far less for all their groceries even with this new price, than normal people pay at their local supermarkets or even on other online sites. Not that it really matters because Amazon has a 4% market share in the groceries industry anyway, as the article reads.
Topic: Amazon Will Start Charging Prime Members for US Grocery Orders of Less Than $150 (Read 56 times)
January 31, 2023, 07:07:53 AM
January 31, 2023, 02:00:12 AM
Amazon is facing immense challenge all over the world. In my country, street vendors have started free home delivery. Since 2020 when COVID hit, the buying behaviour of consumers have changed drastically. They became addicted to online shopping which encouraged the companies like Amazon to invest more to build up their infrastructure and provide such services. But now when COVID doesn't exist anymore, people are going back to their old habit leaving a big gap between supply and demand.
A lot of changes are incoming into the e-commerce front. Amazon is likely to discontinue their grocery businesses in next couple of months due to the steep competition from the local players. People won't pay extra amidst this economic downturn for such products which are available quite easily from local vendors. Wait and watch!
A lot of changes are incoming into the e-commerce front. Amazon is likely to discontinue their grocery businesses in next couple of months due to the steep competition from the local players. People won't pay extra amidst this economic downturn for such products which are available quite easily from local vendors. Wait and watch!
January 31, 2023, 12:13:46 AM
These days unless you are buying a few items. Most weekly or biweekly grocery bills will be at least $150. So this shouldn’t affect most people.
We do the online order at Walmart and it’s free. But honestly it’s worth it because lately Walmart is so busy because everybody shops there to save money it’s beat the headache of having to wait in long lines or having to self checkout 100 items.
There was something called Instacart here which had a monthly fee and a tip you had to apply and it was actually delivered to your place but it’s a pain because they get the wrong item many times and you need to file a claim afterwards to get your money back.
We do the online order at Walmart and it’s free. But honestly it’s worth it because lately Walmart is so busy because everybody shops there to save money it’s beat the headache of having to wait in long lines or having to self checkout 100 items.
There was something called Instacart here which had a monthly fee and a tip you had to apply and it was actually delivered to your place but it’s a pain because they get the wrong item many times and you need to file a claim afterwards to get your money back.
Yeah we don't use insta cart. They suck in New York. I do use a local supermarket for fresh meats and fish for my bro-in-law
King Kullen.
They want a $75 minimum. Plus charge $ 10 to deliver. But they are very attentive to do a perfect order. They called when we do not match up on a product.
January 31, 2023, 12:10:19 AM
Here in my country there is no service like that, offered by a giant like Amazon.
It sounds appealing if the delivery is free, however this new fees imposed by Amazon are not too bad in my opinion. They may be doing it to incentivize their clients to spend more and get over the 150$ threshold.
Still, I must add that is kind of disturbing how Amazon seems to be trying to get into all aspects of life: entertainment, food, medicines, streaming.
Before going for amazon, I'd see if there is some small business in my neighborhood that could provide me for the same service at competitive rates.
It sounds appealing if the delivery is free, however this new fees imposed by Amazon are not too bad in my opinion. They may be doing it to incentivize their clients to spend more and get over the 150$ threshold.
Still, I must add that is kind of disturbing how Amazon seems to be trying to get into all aspects of life: entertainment, food, medicines, streaming.
Before going for amazon, I'd see if there is some small business in my neighborhood that could provide me for the same service at competitive rates.
It’s not only Amazon that is doing this. In most areas of the country you got a Walmart. And do you think smaller businesses can compete with Walmart? No. They would go out of business if they had similar prices. Hence they shut down and Walmart increases prices then, so basically a monopoly.
Years ago many businesses were owned by mom and pop shops. You had a bakery, meat shop, fruit stand, etc. When Walmart opened their doors all those places closed down. This is just the way the economy works.
January 30, 2023, 09:45:14 PM
Here in my country there is no service like that, offered by a giant like Amazon.
It sounds appealing if the delivery is free, however this new fees imposed by Amazon are not too bad in my opinion. They may be doing it to incentivize their clients to spend more and get over the 150$ threshold.
Still, I must add that is kind of disturbing how Amazon seems to be trying to get into all aspects of life: entertainment, food, medicines, streaming.
Before going for amazon, I'd see if there is some small business in my neighborhood that could provide me for the same service at competitive rates.
It sounds appealing if the delivery is free, however this new fees imposed by Amazon are not too bad in my opinion. They may be doing it to incentivize their clients to spend more and get over the 150$ threshold.
Still, I must add that is kind of disturbing how Amazon seems to be trying to get into all aspects of life: entertainment, food, medicines, streaming.
Before going for amazon, I'd see if there is some small business in my neighborhood that could provide me for the same service at competitive rates.
January 30, 2023, 08:47:09 PM
I've been thinking frozen and fresh foods are probably the hardest to deliver an keep (most other things survive fine). I'm surprised there's not been an attempt to just not stock fresh and frozen food because of this. Powdered/dry food (like noodles and pasta) and canned food (fruit, veg, soups, curry and even dairy) seem like they'd be a lot easier to deliver.
I got a box of snickers bars from amazon, years ago. They shipped it inside a big thermal bag with an ice pack inside to keep it from melting.
Not certain what their shipping standard for perishable goods is, but some suppliers do make an effort to keep items fresh.
January 30, 2023, 08:02:00 PM
These days unless you are buying a few items. Most weekly or biweekly grocery bills will be at least $150. So this shouldn’t affect most people.
We do the online order at Walmart and it’s free. But honestly it’s worth it because lately Walmart is so busy because everybody shops there to save money it’s beat the headache of having to wait in long lines or having to self checkout 100 items.
There was something called Instacart here which had a monthly fee and a tip you had to apply and it was actually delivered to your place but it’s a pain because they get the wrong item many times and you need to file a claim afterwards to get your money back.
We do the online order at Walmart and it’s free. But honestly it’s worth it because lately Walmart is so busy because everybody shops there to save money it’s beat the headache of having to wait in long lines or having to self checkout 100 items.
There was something called Instacart here which had a monthly fee and a tip you had to apply and it was actually delivered to your place but it’s a pain because they get the wrong item many times and you need to file a claim afterwards to get your money back.
January 30, 2023, 06:10:45 PM
I used to pay ~$20 a year for annual grocery delivery to the UK (but they'd only deliver orders that are worth more than ~$50).
I've been thinking frozen and fresh foods are probably the hardest to deliver an keep (most other things survive fine). I'm surprised there's not been an attempt to just not stock fresh and frozen food because of this. Powdered/dry food (like noodles and pasta) and canned food (fruit, veg, soups, curry and even dairy) seem like they'd be a lot easier to deliver.
Does the US have an equivelant of Ocado? They seem like they'd be a large aspect of competition in the UK as they've managed to automate the picking and packing process where supermarkets and amazon haven't been able to.
I've been thinking frozen and fresh foods are probably the hardest to deliver an keep (most other things survive fine). I'm surprised there's not been an attempt to just not stock fresh and frozen food because of this. Powdered/dry food (like noodles and pasta) and canned food (fruit, veg, soups, curry and even dairy) seem like they'd be a lot easier to deliver.
Does the US have an equivelant of Ocado? They seem like they'd be a large aspect of competition in the UK as they've managed to automate the picking and packing process where supermarkets and amazon haven't been able to.
Walmart has an 11.99 usd a month deal. If you join it you have free grocery delivery as long as your order is $35 usd.
It also gives other free delivery like clothes etc what ever Walmart sells.
This has help me with ordering for my bro-in-law as he suffers from dementia and lives in New York while I live in New Jersey.
January 30, 2023, 06:05:11 PM
I used to pay ~$20 a year for annual grocery delivery to the UK (but they'd only deliver orders that are worth more than ~$50).
I've been thinking frozen and fresh foods are probably the hardest to deliver an keep (most other things survive fine). I'm surprised there's not been an attempt to just not stock fresh and frozen food because of this. Powdered/dry food (like noodles and pasta) and canned food (fruit, veg, soups, curry and even dairy) seem like they'd be a lot easier to deliver.
Does the US have an equivelant of Ocado? They seem like they'd be a large aspect of competition in the UK as they've managed to automate the picking and packing process where supermarkets and amazon haven't been able to.
I've been thinking frozen and fresh foods are probably the hardest to deliver an keep (most other things survive fine). I'm surprised there's not been an attempt to just not stock fresh and frozen food because of this. Powdered/dry food (like noodles and pasta) and canned food (fruit, veg, soups, curry and even dairy) seem like they'd be a lot easier to deliver.
Does the US have an equivelant of Ocado? They seem like they'd be a large aspect of competition in the UK as they've managed to automate the picking and packing process where supermarkets and amazon haven't been able to.
January 30, 2023, 08:29:26 AM
Quote
(Bloomberg) -- Amazon.com Inc. will start charging fees to online shoppers for grocery orders of less than $150, underscoring the challenging economics of getting food to shoppers’ doorsteps.
The new fees, which take effect Feb. 28, coincide with the company’s efforts to cut costs and adjust to slower growth in online shopping. Charges for the Amazon Fresh grocery delivery service in the US will be $9.95 for orders of less than $50, $6.95 for orders between $50 and $100, and $3.95 for orders of $100 to $150, the Seattle-based company said in an email to shoppers reviewed by Bloomberg.
Amazon had previously offered free grocery delivery for orders of more than $35 to subscribers of the company’s $139-a-year Prime program in some locations. Members can still get free delivery if their carts are more than $150. The company in 2021 eliminated a prior offer of free delivery for Whole Foods Market shoppers, tacking on a $9.95 service fee.
“We’re introducing a service fee on some Amazon Fresh delivery orders to help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to enable offering a consistent, fast, and high-quality delivery experience,” Lara Hendrickson, an Amazon spokesperson, said in an emailed statement. “We will continue to offer convenient two-hour delivery windows for all orders, and customers in some areas will be able to select a longer delivery window for a reduced fee.”
Groceries are the most frequent shopping trip for most households. Amazon has long been working to crack that market, following in the footsteps of rival Walmart Inc., which grew into the largest US retailer in part by adding groceries to its supercenters.
Amazon started selling groceries online in 2007. A decade later, it bought Whole Foods to jumpstart its efforts. Amazon tacked on home delivery from Whole Foods shelves, but the partnership has delivered mixed results to date. The company also operates the line of Amazon Fresh-branded grocers, opening dozens of stores around the US.
Amazon and Whole Foods together account for about 4% of the US grocery market, analysts with UBS said in a research note this week, making the company the fifth-largest food retailer in the US behind Walmart, Kroger Co., Costco Wholesale Corp. and Albertsons Cos. Walmart accounts for 22% of the market, the UBS analysts estimate.
https://finance.yahoo.com/news/amazon-start-charging-prime-members-191411928.html
The new fees, which take effect Feb. 28, coincide with the company’s efforts to cut costs and adjust to slower growth in online shopping. Charges for the Amazon Fresh grocery delivery service in the US will be $9.95 for orders of less than $50, $6.95 for orders between $50 and $100, and $3.95 for orders of $100 to $150, the Seattle-based company said in an email to shoppers reviewed by Bloomberg.
Amazon had previously offered free grocery delivery for orders of more than $35 to subscribers of the company’s $139-a-year Prime program in some locations. Members can still get free delivery if their carts are more than $150. The company in 2021 eliminated a prior offer of free delivery for Whole Foods Market shoppers, tacking on a $9.95 service fee.
“We’re introducing a service fee on some Amazon Fresh delivery orders to help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to enable offering a consistent, fast, and high-quality delivery experience,” Lara Hendrickson, an Amazon spokesperson, said in an emailed statement. “We will continue to offer convenient two-hour delivery windows for all orders, and customers in some areas will be able to select a longer delivery window for a reduced fee.”
Groceries are the most frequent shopping trip for most households. Amazon has long been working to crack that market, following in the footsteps of rival Walmart Inc., which grew into the largest US retailer in part by adding groceries to its supercenters.
Amazon started selling groceries online in 2007. A decade later, it bought Whole Foods to jumpstart its efforts. Amazon tacked on home delivery from Whole Foods shelves, but the partnership has delivered mixed results to date. The company also operates the line of Amazon Fresh-branded grocers, opening dozens of stores around the US.
Amazon and Whole Foods together account for about 4% of the US grocery market, analysts with UBS said in a research note this week, making the company the fifth-largest food retailer in the US behind Walmart, Kroger Co., Costco Wholesale Corp. and Albertsons Cos. Walmart accounts for 22% of the market, the UBS analysts estimate.
https://finance.yahoo.com/news/amazon-start-charging-prime-members-191411928.html
....
The new fees go into effect february 28th 2023.
Quote
The new fees, which take effect Feb. 28, coincide with the company’s efforts to cut costs and adjust to slower growth in online shopping. Charges for the Amazon Fresh grocery delivery service in the US will be $9.95 for orders of less than $50, $6.95 for orders between $50 and $100, and $3.95 for orders of $100 to $150, the Seattle-based company said in an email to shoppers reviewed by Bloomberg.
This is interesting.
Quote
Amazon and Whole Foods together account for about 4% of the US grocery market, analysts with UBS said in a research note this week, making the company the fifth-largest food retailer in the US behind Walmart, Kroger Co., Costco Wholesale Corp. and Albertsons Cos. Walmart accounts for 22% of the market, the UBS analysts estimate.
If true, that means amazon and walmart together account for 26% of the entire US grocery market. Which is crazy to think about. I would guess walmart has gained the advantage over amazon due to them having local brick and mortar locations in many regions of the USA. Making it more feasible for US customers to order food in larger quantities. Target is also known to be targeting (no pun intended) the US grocery market aggressively with their grocery delivery services and pick up plan. I wonder what percentage of the US grocery market amazon, walmart and target have accumulated collectively? It could be a massive chunk.
We still have about a month until the new fees go into effect. Until then amazon groceries can still be a great deal.
They carry many items which can't be found in local markets. Free shipping makes their prices competitive with local alternatives.
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