Amazon said for Prime members, same-day delivery is free for orders over $25 in most cities, and if an order doesn’t meet the minimum, members can still choose same-day delivery for a $2.99 fee.
Amazon.com’s (AMZN) shares rose 1% during morning trade on Wednesday after the e-commerce giant announced that its prime members could now shop for perishable products such as groceries, including meat and seafood, along with other items for same-day fast delivery.
Retail sentiment on Amazon dipped to ‘bearish’ from the ‘bullish’ territory a day ago, with chatter at ‘low’ levels, according to data from Stocktwits.
Amazon said thousands of fresh grocery items, including produce, dairy, baked goods, and frozen foods, would now be available alongside the other everyday products, such as household essentials, electronics, and fashion, delivered within hours of ordering.
The company added that customers in more than 1,000 cities and towns would have access to buy fresh groceries through the same-day delivery option on orders over $25 for Prime members, with plans to reach over 2,300 cities across the U.S. by year-end.
At a time when consumers are stretching their budgets to meet their daily needs as price hikes related to U.S. President Donald Trump’s tariffs go into place, Amazon is looking to offer a wide selection of national and local brands, including organic and natural options. Retail behemoth Walmart (WMT) and food delivery firm Instacart (CART) already offer a same-day delivery option.
Amazon said that for Prime members, same-day delivery is free for orders over $25 in most cities, and if an order doesn’t meet the minimum, members can still choose same-day delivery for a $2.99 fee.
For customers without a Prime membership, the service is available with a $12.99 fee, regardless of order size, Amazon added. The company said the expanded service complements the existing grocery offering already available through Whole Foods Market and Amazon Fresh online and in stores.
A bullish user on Stocktwits noted that Amazon shares could hit $226 on Wednesday. It was trading at $222.64 at the time of writing.
Amazon stock has risen 1.5% so far this year and gained over 30% in the last 12 months.
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