Amazon wants to grow food segment and drops Fresh fees in the US

Amazon pushes its growth strategy: Amazon Fresh and Prime Pantry are now following the launch of the $ 1 free Prime Shipping.

Amazon is to break down any barriers that could hinder customers when ordering. Only recently, the group exempted the shipping costs of low-price items for Prime members from the minimum order value, since then they can be ordered in the US and 1-dollar items without shipping costs. Now Amazon has dropped the addition to the Prime subscription monthly fee for Fresh by 14.99 US dollars. For some time, free shipping for the program Prime Pantry in the US is also possible without a basic fee.

Amazon is expanding its food program on a large scale
Some groceries can be ordered either in the normal Amazon range on the usual terms, but many everyday items, and especially fresh foods, require access to the Amazon Fresh, Amazon Prime Pantry and Prime Now programs. Amazon had previously built barriers in the form of basic charges or shipping costs, which should have contributed to the profitability of the offer. But now Amazon has torn down those barriers.

Amazon manager Stephenie Landry describes the food trade as the "fastest growing area" on Amazon. While people may speculate about the possible scaling effects that Amazon might have achieved in the course of this growth, which may have led to falling costs, it is much safer to guess that Amazon just prioritized food sales without regard to losses.

This shows in, not only the cancellation of shipping costs and monthly fees: In more than 2,000 cities in the United States now a food delivery via Prime Now from the Whole Foods supermarkets or Amazon Fresh is possible. In most cities, according to their own information, Amazon now offers one-hour or two-hour delivery, with a rising trend.

Source: t3n

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