The 148.6 million Amazon Prime members in the United States are used to lightning-fast, free delivery. It has been predicted by eMarketer Amazon Prime membership in the U.S. will rise to 168.3 million by 2025. The vast majority of Amazon Prime members are young adults. According to Amazon Prime statistics, approximately 81% of internet users aged 18 to 34 have an Amazon Prime membership.
The biggest draw to paying for an Amazon Prime membership is getting free, speedy shipping. That is the reason 90% of Amazon Prime members keep their subscription. The other benefits of membership are just a bonus.
Recently, Amazon began trying a new way to lower their costs to deliver packages. Some Amazon Prime members will be able to decide just how much the convenience of home delivery is worth to them.
Select Amazon Prime members who place an order may be surprised by an email from Amazon offering the option to receive $10 on orders of $25 or more if they are willing to pick their package up at a pick-up location such as Whole Foods, Amazon Fresh, or Kohl’s stores.
This new offer to select members on certain orders is one of several ways Amazon has been trying to improve their bottom line. In late 2022, Amazon raised the annual Prime subscription price from $119 to $139.
Amazon also began accessing a $1 fee to some customers if they return packages through the United Parcel Service instead of taking it to a return location.
Amazon Prime members may also have noticed that when checking out on Amazon’s website, there is a button to push for all the packages to be delivered on the same day instead of piecemeal.
In another attempt to lower delivery costs, Amazon raised the minimum for free Amazon Fresh grocery deliveries on February 28, 2023. Prime members using Amazon Fresh used to get free grocery delivery on orders over $35. Now, there is a $9.95 delivery fee for orders less than $50, a $6.95 delivery fee when orders total between $50 and $100, and for orders between $100 and $150, there is a $3.95 delivery fee. It isn’t until a Prime member places an order over $150 that the delivery is actually free.
Consumers need to decide what speed and convenience is worth to them. Would $10 be an incentive to travel to a pick-up location to gather your purchases? Would you rather pay a delivery fee on top of your Prime membership to get groceries delivered to your door? I’d love to read your opinions in the comments!
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