Amazon offers $10 to customers to pick up purchases to cut delivery cost

Amazon.com is offering its customers $10 to pick up their orders at designated locations, such as Whole Foods, Amazon Fresh, or Kohl’s stores, instead of having them delivered to their homes, Reuters news report said.
Amazon employeesThe offer is being extended to an unknown number of Prime subscribers who purchase items worth $25 or more.

Shipping consultant Dean Maciuba, based in Upstate New York, is one of the recipients of the offer. By using Amazon pickup points, the company can avoid the expense of residential package deliveries, which could be a significant opportunity for cost reduction. In addition, this approach helps train consumers to return items directly to Amazon.

To encourage the use of access points, Amazon has also started charging a $1 fee to customers who return packages via UPS stores instead of using Amazon pickup/return locations that are closer to their delivery address. Shipping companies like UPS and FedEx have also promoted the use of access points, especially in rural areas where delivering to distant addresses can be prohibitively expensive.

Amazon has spent years training its customers to expect fast and free delivery and returns. However, the company has raised its annual Prime subscription fee by $20 to $139, increased minimum order thresholds for free grocery delivery, encouraged customers to select a designated day of the week for all their deliveries, and introduced a faster same-day delivery service with a fee for orders below $25.

 

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