Amazon.com, Inc (NASDAQ: AMZN) Prime members in the U.S. will have to shell out more for grocery orders that are less than $150.
According to Amazon's new fee structure, starting on Feb. 28, Amazon Fresh home delivery will incur a $9.95 delivery fee for orders under $50. Orders between $50 and $100 will include a $6.95 delivery fee, and orders between $100 and $150 will carry a $3.95 delivery fee, reports Bloomberg.
Earlier, Amazon Prime members could get free delivery on all orders over $50.
"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," Bloomberg quoted Lara Hendrickson, an Amazon spokesperson, saying in a 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," she added.
Amazon has said it will continue offering two-hour delivery and one-hour pickup for all orders. It will also introduce longer six-hour delivery windows at a lower cost.
In 2007 Amazon began its grocery delivery service. The company unveiled the first iteration of Amazon Fresh in Seattle, delivering thousands of items from local grocery stores to city residents.
In 2017, the company acquired Whole Foods for nearly $14 billion, which many saw as a transformational purchase.
According to Bloomberg, Amazon and Whole Foods account for about 4% of the U.S. grocery market.
Read Next: Amazon Prime Membership Now Costs 16% More: Here's What You're Paying Today
Photo via Shutterstock
This article originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.