Amazon is offering free grocery delivery on orders under $150 for Prime members.
The company said in an email to Prime members on Friday that customers who get their groceries delivered with Amazon Fresh — and pay less than $150 — will be charged between $3.95 and $9.95.
The new policy is starting from 28 February.
“We will continue to offer a convenient two-hour delivery window for all orders, and customers in some regions will be able to select a six-hour delivery window for a reduced fee,” Amazon said in the email.
Launched in 2005, Prime has more than 200 million members worldwide who pay $139 per year, or $14.99 per month, for faster shipping and other perks, such as free delivery and returns.
Currently, the company offers members free grocery delivery on orders above $35, with the exception of New York City, on orders above $50.
Under the new policy, the company said the delivery fee would be $3.95 for orders between $100-$150, $6.95 for orders between $50 and $100, and $9.95 for orders under $50. Amazon Fresh delivery over $150 will be free.
“We are introducing a service fee on some Amazon Fresh delivery orders to help keep prices down in our online and physical grocery stores as we better cover grocery delivery costs and ensure consistent, fast and high continue to enable the offering of a quality delivery experience. Amazon spokeswoman Lara Hendrickson said in a prepared statement.
The company has dozens of Amazon Fresh stores across the United States and has opened a few overseas. Amazon also has Whole Foods since 2017.
The decision to impose the new fee comes as the company seeks to reduce costs amid a bleak economic environment. Over the past few months, it has spun off unprofitable areas of its business and halted recruitment among its corporate workforce. This month it said it would lay off 18,000 workers.