Businesses that are Amazon Prime members can now get free same-day delivery on grocery orders over $25 in most areas, matching the level of convenience made available to consumers last year, the retail titan announced on Tuesday.
Grocery delivery is a big business by itself, but it’s also important for Amazon (NASDAQ: AMZN) as a driver of online merchandise purchases that are delivered through its traditional parcel network. The spread of temperature-controlled last-mile delivery means Amazon has perfected its logistics system for profitable distribution at scale, which helps it compete with other retailers that offer fresh grocery delivery without building stores. At the same time, grocery and restaurant delivery services like DoorDash and Uber Eats have migrated into the last-mile package delivery space.
The news comes one day after Amazon unveiled Amazon Supply Chain Services, a go-to-market initiative that packages existing, standalone logistics services into a managed end-to-end capability.
In December, Amazon reached its target for same-day delivery of groceries in 2,300 cities and towns, more than doubling its previous reach. Amazon is now offering businesses such as offices, schools and gyms that need fresh and frozen food to serve employees, customers and guests, the ability to order perishable groceries alongside essential supplies they already purchase in a single-cart checkout, and receive all their items the same day.
Amazon, the second-largest grocer in the United States with more than $150 billion in gross sales, said it plans to expand fresh grocery delivery to even more areas this year.
“We’re continuously innovating to make business buying simpler, faster, and more cost-effective for our customers,” said Shelley Salomon, vice president Amazon Business, in a news release.”
Orders are delivered within set delivery hours and preferences. At checkout, customers can select delivery windows that align with their business operating hours, ensuring fresh groceries arrive when they are available to receive and store perishable items properly.
Amazon Business takes advantage of Amazon’s temperature-controlled fulfillment network to ensure perishable items stay fresh. Amazon also offers a freshness guarantee on grocery deliveries.
For Business Prime members, same-day delivery is free for orders over $25 in most areas. If an order doesn’t meet the minimum, members can still get same-day delivery for a $2.99 fee. For customers without a Prime membership, the service is available with a $12.99 fee, regardless of order size.
Click here for more FreightWaves/PostalMag stories by Eric Kulisch.
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