Nearly 3 in 5 US digital grocery buyers have done their shopping with Amazon, making it the top online grocer in the US. As of August 30, 2021, Amazon will pilot a $9.95 delivery fee in select markets, to offset costs as online grocery sales continue to grow.
 |  | Nearly 3 in 5 US digital grocery buyers have done their shopping with Amazon, making it the top online grocer in the US. As of August 30, 2021, Amazon will pilot a $9.95 delivery fee in select markets, to offset costs as online grocery sales continue to grow.
The new fee could help prevent Amazon from raising prices to keep up with the high cost of order fulfillment. However, it could deter customers who are already paying $199 annually for Prime, and encourage them to seek out cheaper alternatives, like Walmart+ for $98 per year.
As 63.4% of US households already have Prime memberships, it's unlikely that new fees will pull customers away from Amazon altogether. But Amazon's online grocery business could very well be threatened by free or lower cost services cutting into their sales.
While a national delivery fee could help Amazon offset fulfillment costs, it could cause the company to lose online grocery dominance and give a boost to competitors. With Walmart+ nipping at Amazon's heels to be the top online grocer, Amazon may have to reconsider rolling out this fee or find new incentives to retain customers.
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