Amazon Piloting Grocery Subscription
Amazon’s experimentation in the grocery sector continues, as the e-commerce giant announced that it is testing a grocery subscription for Prime members. Customers who are part of that membership program can pay $9.99 a month to get “unlimited” groceries delivered from Amazon Fresh and Whole Foods Market on orders over $35.
The pilot program is taking place in Sacramento, Calif., Columbus, Ohio, and Denver. Following those rollouts, Amazon may expand the subscription benefit.
“We’re always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond,” declared Tony Hoggett, SVP of worldwide grocery stores for Amazon.
This is the latest tweak in Amazon’s grocery business. Last month, the company announced that it was expanding free Amazon Fresh grocery pickup and delivery beyond Prime members to all U.S. consumers. In that announcement, Amazon noted that Prime members would continue to get their own unique benefits, including exclusive discounts. Also this fall, the company reduced its order minimum for free Amazon Fresh delivery from $150 to $100.
As Amazon incentivizes more customers to buy groceries online, the company is still pursuing brick-and-mortar food retailing. While closing two of its physical apparel stores, Amazon has invested in improvements to some of its Amazon Fresh stores in Illinois and California and still has new store openings planned for 2024.
Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century.
