What: Amazon is increasingly trying to cancel the notion of free delivery due to logistical costs.

Why it is important: This is a blessing in disguise for other retailers as Amazon has been the one disrupter forcing the rest of the market to propose free delivery as a norm. The fact that it changes its strategy might allow other retailers to finally find the adequate solutions to make e-commerce profitable.

In the US, Amazon.com is offering customers USD 10 (about EUR 9) to pick up their orders instead of opting for home delivery. This move aligns with other retailers aiming to reduce delivery and return costs amid a challenging consumer demand slowdown.

Amazon has emailed numerous Prime subscribers, offering them USD 10 to collect their orders of USD 25 (EUR 23) or more from designated pickup points, such as Whole Foods, Amazon Fresh, or Kohl's stores. Increasing the use of Amazon pickup points could help the company avoid costly parcel deliveries and reduce delivery costs. It also trains consumers to make returns directly to the company. Amazon has started charging some customers USD 1 (EUR 0.91) fees if they return parcels through UPS pickup points when an Amazon collection or return centre is closer to their delivery address.

Amazon has taken various measures to reduce delivery costs across the company after years of promoting quick and free deliveries and returns.

Amazon subsidizes customers who accept to pick up orders instead of receiving them at home (French)