Capturing top slots on popular, relevant search terms through Sponsored Products or Sponsored Brands will become increasingly, and possibly prohibitively, expensive due to growing spend by larger brands. This dynamic underscores larger challenges for food brands selling on Amazon. However, upstart and digital-native brands are having some success achieving organic SOV gains versus global brand name competition. Grocery delivery is still only offered in select markets, though availability has slowly increased from sporadic to widespread following Amazon's purchase of Whole Foods.This Momentum Commerce 360 report outlines how large national and multinational food brands are expanding their paid advertising investments on Amazon and capturing larger shares of paid share of voice (SOV) across a number of categories.
Still, it's pretty ridiculous to see the biggest company on Earth claiming its new fees are the only strategy for keeping prices low, especially when that method involves raising costs for the vast majority of shoppers. To be fair, Amazon Fresh originally cost $15 per month in addition to any Amazon Prime membership fees you were paying - it was only in October 2019 that the two services became bundled together. We’re introducing a service fee on some Amazon Fresh delivery orders to help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to enable offering a consistent, fast, and high-quality delivery experience. In an email sent out to Prime customers on Friday, Amazon offered an explanation to customers, claiming - without a hint of irony - that these new rates will “help keep prices low” in its online and physical stores. Totals ranging from $50 to $100 will cost an additional $7, while anything lower than that will incur a whopping $10 delivery surcharge. For orders between $100 and $150, you’ll be charged a $4 fee. This is in addition to the $15 per month or $140 per year customers already pay for a Prime membership, which is required to access the grocery delivery service in the first place.
Beginning February 28, Amazon will charge scaling delivery fees on Fresh orders totaling less than $150.
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