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Whole Foods to go chainwide with new grocery delivery fee

Later next month, $9.95 charge will apply to all delivery customers, including Prime members

Russell Redman

September 27, 2021

2 Min Read
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Starting Oct. 25, Amazon plans to institute a $9.95 fee for delivery orders across Whole Foods stores, with added rush fees for one-hour delivery orders.Amazon

Whole Foods Market online shoppers are set to lose a key perk of their $119-per-year Amazon Prime membership: free two-hour delivery of groceries on orders of at least $35.

Starting Oct. 25, parent company Amazon plans to charge a $9.95 fee for Whole Foods delivery orders chainwide, with additional rush fees for one-hour delivery orders. The change will come less than two months after Amazon announced a test of a $9.95 fee for two-hour deliveries — including Prime member — in six metropolitan markets.

Amazon had notified Whole Foods customers of the pilot for delivery charge — described as a “service fee” and due to kick in Aug. 30 in selected cities — in an email and an online in an FAQ. The FAQ now says the $9.95 delivery fee will be instituted across Whole Foods, though at the time of test Amazon didn’t report whether the fee would be expanded to more market areas.

“Starting Oct. 25, 2021, a service fee will be implemented on Whole Foods Market delivery orders,” Amazon said in the FAQ. “Currently, the service fee is included on delivery orders in Portland, ME; Providence, RI; Manchester, NH; and the greater Detroit, Boston and Chicago areas.”

Amazon noted that the fee will support rising costs for delivery amid elevated online order volume and basket sizes among Whole Foods customers. In addition, the company said Whole Foods is refocusing on in-store investments as more customers return to in-store shopping.

Related:Whole Foods Market to pilot new grocery delivery fee

“The service fee helps cover operating costs, including equipment, technology and other costs associated with your grocery delivery order, so we can continue to offer the same competitive everyday prices in-store and online at Whole Foods Market,” Amazon said in the FAQ.

The new delivery fee won’t affect click-and-collect, as one-hour grocery pickup at Whole Foods will remain free for Prime members on orders of $35 or more, according to Seattle-based Amazon. Two-hour delivery and pickup for orders of at least $35 also will remain free for Prime members at Amazon Fresh supermarkets, the FAQ said.

In late October 2019, Amazon shook up the online grocery arena when it announced Amazon Fresh perishables delivery as a free service under the Prime customer benefits program. With the move, Amazon essentially made all of its same-day, online grocery delivery — including for Whole Foods — a free service for Prime members placing orders of at least $35. Amazon’s Prime Now and Prime Pantry programs already offered members free delivery for that order minimum. Prime members seeking faster service, such as one-hour delivery and 30-minute pickup, pay an extra fee.

Related:Amazon to phase out Prime Now banner for same-day delivery

Overall, Austin, Texas-based Whole Foods operates 505 U.S. stores in 43 states.

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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