We know that a lot has been done in the e-commerce space by Amazon and they were also one of the firsts to start the subscription model thanks to its Amazon Prime membership and they also showed everyone how it can be successful with their perks such as free unlimited deliveries on orders with minimum spend. This is a win-win situation because they have the minimum order average value set as well as get the subscription amount as well and they have a huge fleet of delivery partners which means that they do not find it hard to conduct those deliveries as well.
Now, Amazon is testing a new subscription model which is related to delivering groceries. At the moment, we know that startups such as InstaCart and others are delivering groceries while others get it from stores like Walmart and BestBuy but Amazon is testing an unlimited grocery delivery service with cost of just USD 9.99 per month. Note that the price is just for unlimited grocery delivery and not for the grocery itself which you obviously have to buy at your own.
Amazon announced that “For an additional monthly charge of $9.99, Prime members in three cities can get unlimited delivery on Amazon Fresh and Whole Foods orders over $35. Those who opt-in will also receive unlimited 30-minute pick-up on orders of any size”. Amazon’s Senior Vice President for worldwide grocery stores said “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,”
Also, it is worth noting that “Right now, the pilot is restricted to three U.S. cities: Denver, CO, Sacramento, CA, and Columbus, OH. The $9.99 subscription fee for grocery delivery is an additional charge on top of a standard Amazon Prime subscription — which costs $14.99 per month (or $139 a year)”. If you don’t have Amazon Prime already then it will cost you $25 per month for free standard deliveries as well as free grocery deliveries. For customers who don’t use Amazon Fresh too much, we don’t think this subscription model will appeal to them.
