Amazon UK surprised Prime Members this morning with an email, informing them that starting next month, they will have to pay for same-day delivery on small orders.
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Currently, the company offers same-day delivery for free to Prime members in eligible postal codes. However, beginning September 18, 2023, Amazon UK will impose a delivery fee of £1.99 per delivery when the order does not meet a minimum threshold of £20.
All other Prime orders will continue to be delivered for free, including One-Day orders, which Amazon stated is the most common delivery speed for most Prime members.
This change does not affect customers who are not Prime members. The same-day delivery fee will remain at £5.99.
In comparison to the U.S., American Prime members already have to meet a threshold of $25 for free same-day delivery, in locations where the company offers this service. The delivery cost is $2.99 for order below the minimum, and up to $9.99 for non-Prime members.
Amazon UK Trimming Costs To Improve International Bottom Line
At first glance, this new UK policy doesn’t appear to be a significant change and will only affect Prime members who live in urban areas where the company offers its same-day service.
However, it speaks to Amazon’s ongoing effort to eliminate costly services, features, and divisions that are impacting its retail division’s bottom line. Recently, it axed the popular UK-based bookseller, Book Depository.
Amazon has managed to turn around its North American retail operations, reporting a $3.2 billion operational income during its last quarter. Nevertheless, its international retail business is still struggling and continues to lose money.
For the second quarter of 2023, the company reported an $895 million operating loss on international retail sales, though this is an improvement over previous quarters.
So, for Prime members living in London, Manchester, or other major urban areas where Amazon UK offers its same-day delivery service for free on any-sized order, it will be discontinued in a month. However, all is not lost, as meeting the £20 minimum shouldn’t be that difficult.
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