surcharge will be imposed on prime members on 25 october
Amazon Prime members are subject to a surcharge on Whole Foods Market delivery orders starting next month.
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25, Amazon-owned Whole Foods Market is implementing a $9.95 service fee for delivery, a Whole Foods Market spokesperson told Granthshala Business. However, any pickup order over $35 will still be free for Prime members, the spokesperson said.
The grocer said it is not increasing the prices of its products and is only adding the fee to delivery orders to “cover operating costs including equipment, technology and other costs” associated with the service.
“Delivery growth drives up operating costs that we don’t want to transfer to product prices,” the spokesperson said, noting that the company has “consistent pricing on everyday priced products in stores and online.”
A Twitter user tweeted a notice allegedly received from Amazon about “upcoming changes to Prime grocery delivery benefits at Whole Foods Market” in their area.
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According to the company, Whole Foods Market delivered three times more orders in 2020 compared to pre-pandemic times, after accelerating its delivery business and expanding its service area.
As the pandemic persists, “customers continue to rely on delivery for their stocking needs, as average basket sizes continue to increase since early 2021,” the spokesperson said.
company fee applied August 30 for Chicago, Boston and other areas of New England.