It is learned that according to foreign media reports, Amazon's Whole Foods has seen a sharp drop in orders due to the addition of delivery fees for Prime members.
Amazon, the grocery store that has been mocked as "Whole Paycheck" for its high prices for years, has traditionally offered free shipping to Prime members. But since it added delivery fees on Oct. 25, deliveries from its flagship New York City store have dropped significantly, from 185 to 40 per hour.
It is reported that its competitor InstacartExpress provides free delivery service for orders over $35 to members who pay $100 per year. Walmart also provides this service to members who pay $98 for the Walmart+ service. At the same time, Whole Foods cancels the free delivery service and charges an additional $9.95 delivery fee on top of the $119 annual Prime membership fee.
To sum up, this changing trend of Whole Foods is not surprising. Previously, Whole Foods' product prices were already the highest in the industry. In such a market environment, when other competitors offer free delivery, charging additional delivery fees will inevitably lead to customer loss.
Whole Foods said it did increase service fees, but product prices did not increase. They had no choice but to lose business because they are now losing a lot of money on operating costs. They are currently developing some new businesses and technologies to make up for the losses caused by this move.
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