Amazon’s New FBA Multi-Unit Discount: A Rare Win for Seller Margins
Reading Time: 2 minutesAmazon has introduced a new FBA multi-unit discount for Amazon Business orders,…
Amazon is making grocery delivery more convenient than ever for its Prime members. As of August 13, 2025, Prime users in over 1,000 U.S. cities and towns can now get fresh produce, dairy, meat, seafood, bakery items, and frozen foods delivered same-day, bundled with the rest of their Amazon purchases—all under one cart and one checkout experience. That footprint is set to expand to more than 2,300 locations by the end of this year.
What’s Changed?
- Minimal Order & Pricing Tweaks: Prime members enjoy free same-day delivery on orders over $25. Orders under that incur a $2.99 fee. For non-Prime users, the service is available for a flat $12.99 per order, regardless of size.
- Better Integration: Previously, groceries were processed through Amazon Fresh or Whole Foods systems, often requiring separate carts or fees. Now, perishables are seamlessly integrated into Amazon’s existing same-day logistics network.
Market Ripples and Competition
- Stocks React: Amazon’s shares jumped (around 1–1.4%) on the news, while competitors such as Instacart, DoorDash, Kroger, Walmart, Costco, and Uber Eats saw significant declines—some dipping 4–12%.
- Grocer Disruption: Analysts point to Amazon gaining ground in fast-moving consumer goods—items like pantry staples, pet food, and cleaning products—which are delivering high margins and are critical for traditional grocers’ profitability.
Growth Engine
- Rural and Regional Expansion: Amazon plans to invest over $4 billion by year-end to expand both same-day and next-day delivery coverage, with a focus on rural and underserved areas.
- Promising Early Adoption: In pilot cities like Phoenix, Orlando, and Kansas City, many first-time perishable purchasers started buying again—sales of strawberries even outranked AirPods in some rankings.
- Perishable Shopping Momentum: Grocery Dive reports that 75% of pilot users were new to Amazon perishables, and 20% made repeat purchases within a month.
Strategic Implications
- Simplified Customer Experience: Amazon’s unified cart model eliminates previous friction between regular items and groceries, enhancing convenience.
- Marketplace Advantage: Combining everyday items—electronics, books—with fresh groceries in one delivery revolutionizes consumer expectations around convenience and speed.
- The “Trust Chasm” in Fresh: Critics note that consumers still prefer physical stores for perishables due to trust and quality concerns; Amazon must navigate this hurdle for long-term success.
- Physical Store Limitations: Although Amazon Fresh stores haven’t fully met expectations, this online expansion demonstrates a renewed push from Amazon to capture grocery market share without relying on brick-and-mortar locations.
Summary Snapshot
| Area | Details |
| Scope | 1,000+ cities now; 2,300 planned by year-end |
| Prime members | Free same-day delivery on orders > $25; $2.99 otherwise |
| Non-members | $12.99 per order flat fee |
| Items | Perishables merged with regular Amazon inventory |
| Competition | Intensifying pressure on Instacart, Walmart+, and other rivals |
| Strategic edge | Convenience, unified delivery, aggressive rural build-out |
| Challenges | Consumer trust in fresh produce, physical store setbacks |
In short, Amazon’s same-day grocery extension marks a critical jump in its strategy to redefine grocery retail. By merging perishables with everyday purchases and deploying aggressive infrastructure investments, Amazon is setting a challenging pace for competitors. Whether consumers embrace fresh grocery delivery at scale remains to be seen, but the pressure is already mounting across the sector.
