[Asia Economy New York=Special Correspondent Joselgina] Amazon, a major U.S. e-commerce company undertaking extensive cost-cutting measures, is significantly raising the free shipping threshold for Prime members ordering groceries online from $35-$50 to $150.
According to Amazon on the 29th (local time), starting February 28, orders under $150 on Amazon Fresh will incur shipping fees ranging from $3.95 to $9.95. Specifically, orders under $50 will be charged $9.95, orders between $50 and $100 will be charged $6.95, and orders between $100 and $150 will be charged $3.95.
Until now, Amazon has offered free shipping to Prime members, who pay an annual fee of $139, for grocery orders of $50 or more in New York and $35 or more in other regions through Amazon Fresh. Shipping fees for orders below these amounts were $4.99. However, due to worsening business conditions, the company has significantly raised the free shipping threshold.
Amazon stated in a press release that this fee adjustment is "to maintain low prices while continuing fast delivery services" and "will help keep online and offline grocery prices low." The company added that Prime customers purchasing groceries over $150 will continue to enjoy free shipping as before. Amazon Prime has approximately 200 million members worldwide.
This move is particularly notable as it comes amid Amazon’s extensive cost-cutting efforts in an uncertain business environment. In recent months, Amazon has scaled back low-profit businesses and halted new hiring. This month, the company also began implementing its largest-ever layoff, cutting 18,000 jobs.
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