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Amazon Fresh deliveries could soon cost as much as $9.95.
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The Supplemental Nutrition Assistance Program (SNAP) is a federal program designed to help lower-income households keep healthy food on the table, and it’s gone through a number of changes over the years. One of which is the dramatic growth in online SNAP services. According to the USDA, over 3 million SNAP households shopped online in May 2022, significantly more than the 35,000 in March 2020.
For example, participants can use their SNAP money to order through Amazon Fresh without needing a Prime membership. Following a 2019 pilot, last year Amazon rolled the scheme out throughout the country. Now residents of all states apart from Alaska can use their EBT cards to pay for Amazon Fresh groceries.
The new Amazon Fresh delivery fee structure
One issue with SNAP online shopping is that SNAP funds can’t be used to pay delivery charges, whether that’s with Amazon Fresh or other stores. This can eat into the money people need for other essentials such as rent and utility bills. As a result, online services with free delivery or low qualification thresholds are much more useful for SNAP households.
Up until now, that wasn’t too much of a problem with the Amazon Fresh service because you only had to spend $35 to get free deliveries. Unfortunately, the service will soon charge hefty delivery fees on orders less than $150. Avoiding the $14.99 monthly Amazon Prime fee for SNAP recipients doesn’t help much if they have to pay almost $10 for small orders.
From Feb. 28, the new Amazon Fresh delivery fees will be:
Orders under $50: $9.95Orders of $50 to $100: $6.95Orders of $100 to $150: $3.95Orders over $150: Free
It’s difficult for many SNAP households to spend $150 in one go, especially those with just one or two people. According to the USDA, the maximum SNAP benefit for a one-person household is $281, so it would use more than half their monthly food budget to meet the $150 free delivery threshold. The new charges will present additional challenges for SNAP recipients who are elderly or disabled and rely heavily on delivery services.
How SNAP recipients can manage the changes to Amazon Fresh
It’s frustrating when a service that has helped you save money introduces new fees. More so since Amazon’s new charges come at a time when more Americans are taking on debt or using credit cards to pay for essentials like food.
The good news is that you don’t have to use Amazon Fresh. Even if you don’t want to go to the store, there are a number of other online grocery stores that take SNAP payments. The USDA says more than 150 chains now offer online shopping to SNAP participants. Look for SNAP approved online retailers that operate in your state. You never know, you might find better bargains than Amazon Fresh as well as lower delivery costs.
Another option? Consider shopping in person — it isn’t as convenient, but you can often find different deals in store than you’ll get online. Plus, your money will go further if you can find double-up food programs operating in your area. There are a couple of projects that let you get two for the price of one on your fruit and vegetables when you pay with your EBT card at participating farmers markets and stores.
If you want to carry on using Amazon, look for products labeled “SNAP EBT Eligible” in the Amazon grocery store. In addition to Amazon Fresh, SNAP eligible groceries are available with Whole Foods and Amazon Groceries. There’s a fee of $9.99 on all Whole Foods deliveries, but orders of $25 or more in the Amazon Grocery store still qualify for free delivery. You’ll need to add your SNAP EBT card to your Amazon account and enter your EBT pin when you pay.
Bottom line
The new Amazon Fresh delivery charges could make a significant dent in many peoples’ bank accounts, whether or not they are SNAP recipients. A $9.95 fee on a purchase of $50 or less could equate to 20% or more of the total shop, and the $150 threshold for free delivery is out of many people’s reach. The good news is that there are a number of other online retailers that now take SNAP EBT payments, and some of them may even be cheaper than Amazon Fresh.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Emma Newbery has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.
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