AmazonFresh now free for Prime members

Date : 29 October 2019

Amazon’s grocery delivery service, AmazonFresh, is now a free benefit for Prime members in the US.

Free and fast grocery delivery

Prime members are now able to receive groceries using AmazonFresh as a free benefit, with options for fast one- and two- hour delivery windows. Previously, members would pay $14.99 a month for the service. Existing members will be able to benefit from the change immediately, while new customers can register their interest on Amazon’s website and await an invite. AmazonFresh’s range includes meat, seafood, produce, snacks, and household essentials.

Stephenie Landry, VP of grocery delivery, commented: “Prime members love the convenience of free grocery delivery on Amazon, which is why we’ve made AmazonFresh a free benefit of Prime, saving customers $14.99 per month. Grocery delivery is one of the fastest growing businesses at Amazon, and we think this will be one of the most-loved Prime benefits.”

Service expansion

In recent months, Amazon has continued to expand grocery delivery from AmazonFresh and Whole Foods Market to more cities. Fresh grocery delivery is now available in over 2,000 cities and towns, with plans to expand further. Delivery speeds have also been improved, with one and two-hour options on offer in most AmazonFresh cities.

Making grocery shopping more convenient

Amazon continues to expand its market position for grocery shopping and household goods, directly challenging traditional retailers. Eliminating the monthly cost of AmazonFresh removes a significant barrier and enables the service to become open to a larger amount of Prime shoppers. The move follows the news last month that Walmart is rolling out its ‘Delivery Unlimited’ programme. This service enables customers to receive unlimited grocery delivery orders for an annual fee of $98, or $12.95 a month. In the US, Amazon is clearly stepping up its investment in food and consumer goods. Earlier this month, the retailer removed restrictions that prevented Prime members from using one-day shipping on items less than $5. Amazon Prime members are now able to purchase single items as little as $1 and receive with free one-day shipping. These changes allow Amazon to benefit from the high frequency of shop, with the ultimate aim of generating more traffic onto the website.

Keep up to date with developments at Amazon

See the latest Amazon news here and IGD Retail Analysis subscribers can learn more from our Amazon Strategic Outlook presentation.