Amazon is accelerating its push into the fresh grocery market with the expansion of its same-day delivery service to over 1,000 US cities and towns, aiming to reach at least 2,300 locations by the end of 2024.
The service, which enables customers to add fresh produce, meat, and eggs to their regular online orders, is designed to boost grocery sales and draw more shoppers into Amazon’s wider retail ecosystem.
Wider rollout after initial testing boosts grocery orders
The same-day fresh delivery service was first tested in select cities in 2023, where Amazon observed a marked increase in order frequency among customers who purchased perishable goods.
The company reported that many of these shoppers were new to its grocery services, with those using same-day delivery returning to shop twice as often as those who did not buy fresh food.
The expansion now includes cities such as Raleigh in North Carolina, Tampa in Florida, and Milwaukee in Wisconsin, with the nationwide rollout expected to continue steadily through the year.
Amazon says the goal is to make fresh grocery shopping as seamless as purchasing electronics, books, or household items on its platform.
Pricing and availability for Prime and non-Prime customers
For Amazon Prime members, the service is free for orders over $25 in most cities, with a $2.99 charge for smaller orders. Non-Prime customers can also use the service for a flat fee of $12.99, regardless of order size.
This pricing model aims to encourage larger basket sizes while keeping the service accessible to those outside Amazon’s subscription programme.
The service covers a range of fresh produce and household staples, including strawberries, bananas, avocados, bottled drinks, canned foods, cleaning supplies, and paper products.
By integrating grocery options directly into its main online store, Amazon is looking to capture impulse purchases from customers already browsing for other items.
Reshaping Amazon’s grocery business with Whole Foods integration
Amazon’s expansion comes amid a broader restructuring of its grocery operations. In January 2024, the company appointed Jason Buechel, CEO of Whole Foods Market, to lead its worldwide grocery stores division.
Whole Foods, acquired by Amazon in 2017 for $13.7 billion, has historically operated independently, but a June reorganisation brought the premium grocer closer to Amazon’s core grocery business.
This integration is intended to unify the customer experience and streamline operations across Amazon Fresh stores, Whole Foods locations, and the online delivery network.
The company is also reworking its Amazon Fresh physical stores to attract more walk-in customers, while expanding fresh food delivery to shoppers who do not hold Prime memberships.
Strategy to grow grocery market share in the US
With this expansion, Amazon is positioning itself more aggressively in the US grocery sector, which is valued in the hundreds of billions of dollars annually.
The company’s strategy combines competitive delivery times, flexible pricing, and a growing physical footprint to challenge traditional supermarkets and other online grocery providers.
By targeting both Prime and non-Prime customers and linking grocery purchases to its broader retail platform, Amazon aims to become a more consistent shopping destination for everyday essentials alongside its established e-commerce categories.
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