Amazon Considers Ending Free Shipping Service... $10 Discount for In-Store Pickup

The world's largest e-commerce company, Amazon, has decided to offer a $10 discount service if customers pick up products themselves instead of having them delivered to their home address, in order to reduce shipping costs.

According to major foreign media on the 9th (local time), Amazon sent emails to an unspecified number of Amazon Prime subscribers stating that if they order over $25 and pick up products at designated locations such as Whole Foods, Amazon Fresh, or Kohl's, they will receive a $10 discount.

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Amazon Fresh and Whole Foods are grocery markets operated by Amazon, and the department store Kohl's has partnered with Amazon since 2019 to handle product pickup and returns. Currently, Amazon Prime subscribers can receive or return ordered items free of charge.

Amazon's new policy is analyzed as an effort to increase the usage frequency of pickup locations and reduce costly home deliveries. Separately, it is known that Amazon charges a $1 fee for returns made through UPS stores, even though some customers have Amazon pickup and return locations near their delivery addresses. Delivery companies UPS and FedEx have opened stores called "Access Points" in rural areas with low population density and high delivery costs to encourage usage.

Dean Makiuba, a delivery consultant, explained to a media outlet, "If the usage rate of Amazon pickup points increases, it will help bypass costly home deliveries," adding, "It is a great opportunity to reduce shipping costs."

Amazon has recently introduced various cost-cutting measures amid concerns of an economic downturn. Last year, it raised the annual Prime membership fee from $119 to $139 and imposed shipping fees of up to $10 on grocery orders under $150.

However, some consumers have expressed dissatisfaction, saying there is no reason to use Amazon Prime if free shipping benefits are excluded.

Brian Fabiano, who lives in New York, told major foreign media, "My wife and I maintain our Prime membership because of the shipping benefits," and criticized Amazon's pricing policy, saying, "If it's not free shipping, why should we pay money?"