Whole Foods, which has around 500 US stores, primarily appeals to wealthier shoppers and specializes in natural and organic products. It also wants to attract new sign-ups.Īmazon is building Fresh stores to chase a different clientele than Whole Foods’ well-defined customer base, analysts say. Amazon hopes that Fresh stores will help the company gain more of Amazon Prime members’ spending on groceries, thereby increasing loyalty to the subscription program. The online retailer isn’t just making those moves because it wants a bigger chunk of the US grocery business. Grocery analysts expect that the company will add more beyond that. It will open a 12th Thursday in Long Beach, California, and Amazon says it has plans to open an additional four stores, although it has not given a timetable. Amazon has opened 11 Fresh locations around the United States over the past year. Instead, Amazon is ramping up openings of Amazon Fresh grocery stores. But this time, Whole Foods isn’t the focus of the strategy. It's cheaper than Amazon Prime, costing only $98 annually or $12 a month, and the recent addition of Paramount Plus (opens in new tab) - giving you streaming options - through the service can really help it stand up to Prime Video.Four years after Amazon bought Whole Foods, the e-commerce giant is making another major push to sell shoppers groceries. If you’re looking for an alternative to Amazon Prime, check out Walmart+ (opens in new tab), a similar service offering free shipping on thousands of products, including groceries, electronics, toys and furniture. The student version of the plan will also be raised from $4.99 a month to $5.99 a month. Starting February 21, 2023, the Amazon Music Unlimited Individual Plan will increase from $9.99 to $10.99 per month. Amazon Drive is a cloud service, offered to Prime members, that gives users 5 GB of storage space for free.Īdditionally, Amazon’s music subscription service (opens in new tab) will also increase in price later this month. For instance, Amazon recently announced it will stop supporting Amazon Drive by the end of December 2023. As the price of their membership increases, you’d likely expect Amazon to add more benefits for Prime members, not get rid of them. The price of a Prime membership went up last year, going from $119 to $139, a 17% price increase. Through this price hike, Amazon intends on keeping grocery prices low and covering costs to be able to provide a high-quality grocery delivery service, but it does seem to decrease the value of the service and overall Amazon Prime membership. However, if you live in an area with a delivery window of six hours, you could receive a reduction in these fees, and one-hour grocery pickup at Amazon Fresh stores will remain free.
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