Whole foods customers voted against the company’s new delivery charge of $ 9.95, according to a report.
The company, owned by Amazon, offered free shipping to Amazon Prime customers. But recently, the fees have led some customers to do their own shopping.
Because of this, there has been a massive drop in delivery orders, with one employee claiming the number of deliveries per hour has dropped from 185 to 40 since the new tariff.
The company called the reports inaccurate, with spokesman Brian McGuigan disputing the figures but declining to provide more information on the number of deliveries per hour. He did not say whether deliveries were affected by the new charges.
The report says there are more stores seeing their sales drop, especially since the grocer already has the highest prices in the industry.
Shipping fees have also been a point of contention for other grocers, with Instacart Express offering free shipping on orders of $ 35 or more for customers paying an annual fee of $ 100. Walmart also offered this type of service to businesses paying a fee of $ 98 for Walmart +.
Whole Foods customers have been more willing to shop in person and take their own groceries home since the fee came into effect.
The company said it added fees instead of raising prices, which could have hurt business for foot traffic as well as delivery. But Dan Glickberg of venture capital firm Dan Glickberg Food said it was “ultimately more important” to have free shipping as opposed to high-end products.
Retail consultant Brittain Ladd, a former Amazon executive, said the company lost so much on delivery that it moved into a new area, in terms of adding fees for Prime members.
PYMNTS reports that Amazon has worked with UK grocery chain Sainsbury’s to offer cashless shopping. The report says Sainsbury’s will be the first to offer Just Walk Out technology, allowing customers to use phone apps and QR codes to enable faster purchases without having to go through checkouts.
See more: Amazon urges Sainsbury buyers to ‘just get out’