By Kathryn Hardison

Amazon.com Inc. will start charging a service fee for Amazon Fresh grocery orders under $150 in a move to keep prices low.

Starting Feb. 28, the company will charge $3.95 for orders between $100 and $150, and $6.95 for orders between $50 and $100, according to an email sent to Amazon Prime customers. Orders under $50 will incur a $9.95 fee.

Delivery orders exceeding $150 won't receive an additional fee with a Prime membership, the company confirmed Friday.

"This service fee will 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," the company said in its email to customers.

Write to Kathryn Hardison at kathryn.hardison@wsj.com

(END) Dow Jones Newswires

January 27, 2023 18:28 ET (23:28 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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