Amazon announced that it now offers same-day delivery for perishable groceries in more than 1,000 U.S. cities and towns.

In an Aug. 13 statement, it said it plans to further expand to more than 2,300 cities and towns by the end of 2025. Amazon is making same-day delivery free for Prime members’ orders of $25 or more. It is also making same-day delivery of perishable groceries available for a fee to customers who are not Prime members.

If a grocery order does not meet the $25 minimum, consumers can still select same-day delivery for a $2.99 fee, Amazon said. For Amazon customers who are not Prime members, the fee is $12.99 regardless of order size, according to the company.

Online grocery sales are a growing market in the U.S. On average, U.S. consumers have spent $9.76 billion per month on online grocery orders, according to Digital Commerce 360 analysis of Brick Meets Click monthly data.

Amazon ranks No. 1 in the Top 2000. The database is Digital Commerce 360’s ranking of North America’s largest online retailers based on their annual ecommerce sales.

Amazon is also No. 3 in the Global Online Marketplaces Database. That database ranks the 100 largest global marketplaces by third-party gross merchandise value (GMV). Digital Commerce 360 projects Amazon’s total web sales in 2024 will reach $469.01 billion.

Amazon’s same-day delivery expansion for groceries

The announcement that Amazon will expand same-day delivery for groceries follows a larger initiative to reach more areas in the U.S. with fast shipping.

In late June, Amazon announced it would expand fast delivery to rural areas by the end of the year. It said at the time that it plans to reach “tens of millions of customers” in more than 4,000 smaller cities, towns and rural communities with both same-day and next-day delivery by the end of 2025.

In its Aug. 13 statement, Amazon framed its newest move as “one of its most significant grocery expansions.”

It said its service “offers customers the option to order from thousands of fresh grocery items — including produce, dairy, meat, seafood, baked goods, and frozen foods — at an incredible value alongside the millions of items such as everyday household essentials, electronics, and other products already available for Same-Day Delivery on Amazon.com.”

Consumers can purchase produce and consumer electronics in the same order for same-day delivery, checking out with one cart, Amazon said.

The online retail giant will also use its “specialized temperature-controlled fulfillment network” to guard against perishable items perishing during the delivery process. Every item undergoes a six-point quality check upon arrival and before leaving for delivery, according to Amazon.

“Temperature-sensitive products are delivered in insulated bags that are recyclable in most curbside recycling programs, the same used for Amazon Fresh and Whole Foods Market deliveries, to ensure items remain at appropriate temperatures,” the company said.

Additionally, it said it has designed its service to complement its existing grocery delivery offerings, which include those through Amazon Fresh and Whole Foods Market, along with “a variety of local grocery and specialty retailers” selling on Amazon.com.

How Amazon could disrupt the online grocery industry

As the largest online retailer in North America, Amazon’s decisions impact the industry at large.  Delivery is not cheap, but Amazon benefits from having its own fulfillment network that it claims is increasingly efficient and cost effective.

Piyush Patel, chief ecosystem officer at software provider Algolia, said in a statement that Amazon leverages a shift in behavior in which “consumers default to more cooking at home.”

It can “allow them to get groceries for individual meal nights delivered and not have to worry about what most grownups do, i.e., make grocery list, go on Sunday for the week, and stock up,” he said.

Amazon’s expansion into grocery delivery reinforces a core consumer insight, according to Dani Jurado, executive vice president of North America at ecommerce platform provider VTEX.

“Convenience is table stakes in today’s market,” she said in a statement.

But speed alone isn’t enough to win long-term loyalty, she told Digital Commerce 360. She cited VTEX data indicating 79% of shoppers use loyalty or rewards programs, and 65% want personalized experiences based on their history.

“Grocers have a clear opportunity to compete by leveraging the trust they’ve built — 52% of shoppers actually prefer buying through grocers’ own apps or sites over third-party platforms — and creating seamless omnichannel experiences that connect in-store and online,” Jurado said. “Those who marry convenience with transparency, rewards, and personalization will stand the best chance of winning over and retaining customers in an increasingly competitive market.”

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