Executive Briefings

Amazon's Pricing Change for Grocery Delivery Is Strategic, Analyst Says

For the better part of the last decade, Amazon Fresh has been an enigma. Now, with a change to its pricing, Amazon positions Fresh much more favorably, said Keith Anderson, a vice president at Profitero, an e-commerce analytics start-up that works with retailers and consumer brands.

The Amazon grocery service, which includes same-day delivery of both perishable and non-perishable groceries, got its start in Seattle in 2007 but didn't launch in any other regions for six years.

This month, it erased all of the experiments and instituted a single, more reasonable pricing model for the Amazon Fresh service: A monthly fee of $14.99, only available to existing Prime members.

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The Amazon grocery service, which includes same-day delivery of both perishable and non-perishable groceries, got its start in Seattle in 2007 but didn't launch in any other regions for six years.

This month, it erased all of the experiments and instituted a single, more reasonable pricing model for the Amazon Fresh service: A monthly fee of $14.99, only available to existing Prime members.

Read Full Article