Amazon has introduced various cost-cutting measures as it braces for slower economic growth.
American multinational tech giant Amazon will charge delivery fees on all grocery orders above $150 in the United States starting February 28. This is a massive jump from previous delivery fees charged on orders above $35.
According to TechCrunch, citing an email to Prime members, orders on Amazon Fresh between $100-$150 will be charged a $3.95 delivery fee. Orders between $50-$100 will account for a $6.95 fee and any order below $50 would attract a delivery charge of $9.95.
The new service fees policy is claimed to help the e-commerce giant in keeping prices low for its online and physical grocery stores. While the company’s two-hour delivery window for all orders will continue to operate, customers can cut on delivery fees by opting for longer-hour delivery windows.
Customers went on Twitter to complain about the significant jump from $35 to $150. “Guess I’m not using @AmazonFresh anymore. As a single person, there’s no way I’m spending $150+ on each grocery order. What is the point of me paying for a Prime membership if you keep taking away the perks? Clearly Amazon needs more money,” a Twitter user named Ashley wrote.
The tech giant has introduced various cost-cutting measures as it braces for slower economic growth owing to an expected recession this year along with a slump in consumer and business spending due to soaring inflation. Earlier this month, Chief Executive Andy Jassy said in a public staff note that the company would let go of more than 18,000 employees as a part of the company’s annual planning process.
It is reportedly testing cheaper, ad-supported Prime Lite membership in India for Rs 999 a year. Furthermore, as a part of its cost-cutting measures, the company last year discontinued some of its businesses in India including its wholesale distribution business, edtech platform Amazon Academy and food delivery venture Amazon Food.
