Amazon offers free same- day delivery for Prime members
In another blow to brick- and- mortar stores, Amazon. com is offering free same- day delivery for Prime members in 14 metropolitan areas.
Members who make a purchase of $ 35 or more by noon will receive their items by 9 p. m. that day, seven days a week. More than 1 million products, including books, cables and chargers, games, cooking tools and electronics, are eligible for the program initially.
Chris Rupp, Amazon’s vice president of Prime, called the move “a real life- changer,” particularly for shoppers who find themselves strapped for time and in need of something quickly — baby supplies or a birthday gift, for instance.
“These things just pop up in life, and this is meant to simplify our customers’ lives,” she said.
The same- day option will be available in much of the Bay Area, and in the metropolitan areas of San Diego, Los Angeles, Seattle, Phoenix, Dallas, Indianapolis, Atlanta, Washington, Baltimore, New York, Philadelphia, Boston and Tampa Bay.
Rupp said Amazon has no plans to increase the price of Prime, which costs $ 99 a year and includes such benefits as free two- day delivery and instant streaming of movies and television shows.
As people shop online more often, affordable same- day delivery was seen as key.
“It’s that last bit of fruit that people want. … It would probably win over those last few holdouts that just gotta have stuff now,” said Michael Pachter, an analyst at Wedbush Securities. “The problem is it’s a logistical hell.”
Although every retailer would like to offer same- day delivery, few have a structure to handle such a complex undertaking or the sales to make it worth it.
Amazon, the nation’s largest e- commerce operation, is the rare exception. It began offering same- day delivery in select markets a few years ago, charging $ 5.99 per order for Prime members. They will continue to be charged that fee for orders of less than $ 35. Those who aren’t Prime members pay $ 8.99 plus 99 cents per item for sameday service.
The decision to add the free option, Rupp said, stemmed from customers’ desire for the service and Amazon’s ability to get a wide range of products to customers faster, thanks to new warehouses, putting merchandise closer to shoppers and making same- day delivery more feasible.
Amazon is touting the move as an increased benefit for its most loyal customers, but it was also facing stiff pressure from Google, Walmart and delivery startups.
Google offers sameday delivery on eligible orders over $ 15 for members of its Google Express service. Membership is $ 10 a month or $ 95 a year. Participating retailers include Target, Barnes & Noble and Costco.
For now, Amazon will rely on a fleet of trucks to deliver orders on the same day, although Rupp declined to name its delivery partners.
She also would not comment on how Amazon will absorb the costs of offering free same- day delivery or discuss other financial details of the move.
More than 500 cities and towns are included, with more regions to be added down the line.
The new free sameday delivery offering is separate from Amazon Fresh, the grocery delivery service.