Yes, Amazon Fresh is Included with Prime in 2023 – Here‘s What You Need to Know as a Seller

The short answer is yes – Amazon Fresh grocery delivery is now included with a Prime membership at no extra cost.

As an Amazon seller, it‘s important to understand how Prime members use Amazon Fresh. This detailed guide will explain everything sellers need to know about Amazon Fresh in 2023.

I‘ll cover topics like:

• Overview of Prime member behaviors
• How Amazon Fresh adoption is growing
• Differences between Amazon Fresh and Prime Now
• Amazon Fresh order minimums and delivery fees
• Where Amazon Fresh is available currently
• Tips for sellers optimizing listings for Amazon Fresh
• Pros and cons of Amazon Fresh for ecommerce brands
• How Amazon Fresh compares to other delivery apps
• Examples of top-selling products on Amazon Fresh

Let‘s dive in!

A Closer Look at Prime Members and Grocery Delivery Trends

Over 200 million people worldwide are Amazon Prime members. In the US alone, over 50% of households are signed up for Prime.

These members spend heavily on Amazon – on average over $1400 per year compared to $600 per year for non-Prime shoppers.

When it comes to groceries, studies show 74% of Prime members have purchased groceries on Amazon in the past 6 months. The COVID-19 pandemic also fueled a major shift toward online grocery shopping.

As a seller, it‘s key to recognize Prime members are a huge target audience for Amazon Fresh. Understanding their behaviors will help you optimize your strategy.

Steady Rise in Amazon Fresh Adoption Among Prime Members

Though Amazon Fresh launched back in 2007, adoption has steadily risen in recent years.

As of September 2022, over 25% of US households have used Amazon Fresh in the past 12 months, up from just 16% in 2020.

A 2021 survey by ecommerce analytics firm Finaria found:

• 58% of current Amazon Fresh customers say they started using it in the last year

• 34% have been customers for 1-2 years

• Just 8% have been using the service for 3+ years

So use of Amazon Fresh is clearly surging, correlated with the rise in households signing up for Prime memberships.

As Amazon expands into more metro areas, I expect adoption will continue growing among Prime members looking for grocery delivery convenience.

How Amazon Fresh Differs from Prime Now

As an Amazon seller, it‘s helpful to understand the difference between Amazon Fresh and Prime Now:

• Prime Now offers delivery from local stores, like Whole Foods and local supermarkets. Amazon Fresh delivers directly from Amazon‘s own warehouses and inventory.

• Prime Now has a wider selection beyond just groceries. Amazon Fresh focuses specifically on fresh produce, dairy, meat, meals, and essentials.

• Prime Now requires a $35 minimum order for free delivery. Amazon Fresh has a $35 or $50 minimum depending on the customer‘s location.

Below is a simple table summarizing the key differences:

Understanding these differences helps sellers optimize listings appropriately based on which service their products are eligible for.

Now let‘s look at the order minimums and delivery fees.

Amazon Fresh Order Minimums and Delivery Costs

One key factor sellers should know is the Amazon Fresh minimum order size for free delivery:

• $35 minimum – Most regions
• $50 minimum – Select areas like NYC, LA, Chicago

If a Prime member‘s cart is under the minimum threshold, they‘ll incur a delivery fee between $3.99-$7.99 depending on location and time slot.

Many customers place larger, planned shops to hit the minimum. But some still place smaller orders and just pay the fee.

As a seller, hitting the minimum order thresholds means your products get delivered free for Prime members. This can influence purchase decisions.

Where Is Amazon Fresh Currently Available?

Amazon Fresh is only available in certain metro regions across the US right now. Sellers can check eligibility by zip code here.

Some of the major metro areas where Prime members can currently use Amazon Fresh include:

• Atlanta, GA
• Austin, TX
• Baltimore, MD
• Boston, MA
• Chicago, IL
• Dallas, TX
• Denver, CO
• Las Vegas, NV
• Los Angeles, CA
• Miami, FL
• New York City, NY
• Philadelphia, PA
• Phoenix, AZ
• San Francisco Bay Area, CA
• Seattle, WA
• Washington D.C.

Expansion plans for 2023 include adding the service in regions like Houston, Minneapolis, San Antonio, and Pittsburgh.

As Amazon Fresh launches in more cities, it presents a wider opportunity for sellers to reach new Prime members with their products.

6 Tips for Sellers Optimizing Listings for Amazon Fresh

Based on Amazon Fresh shopper behaviors, here are 6 tips for sellers looking to optimize their listings and performance:

1. Highlight product freshness

Call out things like expiration dates, packaged dates, or "freshly harvested" for produce, meat, and baked goods.

2. Enable 1-hour delivery if possible

Faster delivery windows can increase convenience and urgency for Prime members to purchase.

3. Tailor listings for meal solutions

Suggest popular pairings or recipes to coordinate items into full meals.

4. Offer multi-packs and bulk options

Bundling products helps customers build bigger orders and hit the minimums.

5. Promote coupons and deals

Providing an additional discount on Amazon Fresh orders can incentivize purchases.

6. Use strong food images

Mouth-watering food photos perform better to convey freshness.

Optimizing along these lines can help sellers boost conversions and sales on Amazon Fresh.

Pros of Selling Products on Amazon Fresh

As a seller, there are a number of advantages to having your items included in the Amazon Fresh selection:

• Exposure to a huge Prime member audience – Over 200 million members globally

• High frequency of orders – Prime members shop for groceries more often than other categories

• Faster path to purchase – 1-hour delivery windows drive urgency

• Lower cost of entry – No physical storefront required versus traditional grocery

• Delivery costs covered – Free shipping for Prime customers on orders over the minimum

• Steady sales flow – Grocery staples drive recurring purchases

• Fewer out of stocks – Amazon‘s warehouses maintain stable inventory

Having your products featured in the Amazon Fresh assortment provides amazing opportunities to generate sales and growth for ecommerce brands.

Potential Drawbacks and Challenges of Amazon Fresh

However, selling on Amazon Fresh also comes with a few drawbacks to consider:

• No control over placements – Amazon controls branding, imagery, product titles, etc.

• Lower margins – Grocery is a low margin category compared to other ecommerce segments

• Seasonal demand – Sales follow cycles for holiday baking, summer produce, etc.

• Strict shipping and supply requirements – Need reliable distribution to Amazon fulfillment centers

• Product restrictions – No supplements, restricted items per Amazon‘s policies

• Oversaturation – High competition in grocery makes differentiation difficult

While the scale of Prime members is attractive, selling profitably long-term requires understanding the unique challenges of this space.

How Amazon Fresh Compares to Other Grocery Delivery Apps

Besides Amazon Fresh, there are a variety of other grocery delivery apps and services Prime members may consider:

• Instacart – Lets you order delivery from local stores; $35 minimum for free delivery
• Walmart InHome – Walmart handles grocery delivery and item unloading/stocking in your kitchen; $19.95/month fee
• Target Shipt – Same-day delivery from Target stores; $99 annual membership
• Uber Eats – Restaurant delivery app offering some grocery and convenience items; delivery fees apply
• Postmates – Primarily restaurant delivery but offers select grocery staples; delivery fees apply

Amazon Fresh compares favorably to these alternatives for Prime members due to:

• Lower minimum order for free delivery ($35 vs $50 – $99)
• Faster delivery times (as quick as 1 hour)
• Wide assortment of fresh foods and staples
• Seamless integration with Prime account and payment

However, services like Instacart do give added flexibility by allowing customers to shop across multiple local stores.

Top Selling Grocery Categories on Amazon Fresh

As a seller evaluating Amazon Fresh, it helps to know which grocery categories perform best on the platform.

Based on Amazon‘s public data, top products by sales include:

• Fresh fruits & vegetables – Berries, bananas, avocados, lettuce, tomatoes, citrus, melons, etc.
• Dairy & eggs – Milk, yogurt, cheese, butter, eggs
• Breads & baked goods– Loaves, bagels, muffins, croissants
• Beverages – Soda, juices, sparkling water, coffee
• Snack foods – Chips, nuts, bars, crackers, popcorn
• Prepared foods – Fresh meals, salads, soups
• Meat & seafood – Chicken, ground beef, salmon fillets
• Frozen foods – Pizzas, ice cream, frozen vegetables

Categories like fresh produce, dairy, bread, and beverages lead the pack when it comes to order frequency and sales.

Prepared foods are also on the rise as customers look for quick meal solutions.

Examples of Best Selling Products on Amazon Fresh

To give you a sense of actual products selling well on Amazon Fresh, here are some top examples and estimated monthly sales:

• Chobani Greek Yogurt ($1.2 million/month)
• Blue Diamond Almonds ($750k/month)
• Dasani Water ($2 million/month)
• Haagen-Dazs Ice Cream ($1.5 million/month)
• Hebrew National Hot Dogs ($650k/month)
• Annie‘s Mac & Cheese ($400k/month)
• Fresh Romaine Hearts ($3 million/month)
• Hass Avocados ($4 million/month)
• Naked Smoothies ($2.5 million/month)

You‘ll notice frequent purchases of grocery staples and snack foods in addition to fresh perishables.

Understanding current top sellers helps inform product selection and opportunity identification.

Optimizing for Amazon Fresh Success in 2023

Based on all we‘ve covered, here are 5 tips for sellers looking to succeed on Amazon Fresh this year:

• Focus on grocery staples with steady repeat purchase cycles
• Emphasize freshness and product quality in listings
• Offer multi-packs to help shoppers hit order minimums
• Build partnerships to ensure reliable supply and distribution
• Provide discounts like coupons to incentivize trial from Prime members

Grocery is competitive, but leaning into these best practices can help your brand win with Prime members using Amazon Fresh.

The Bottom Line

Amazon Fresh is gaining significant adoption among Prime members seeking grocery delivery.

Understanding how Amazon Fresh works and the differences from Prime Now allows you to optimize listings and availability accordingly.

Pay attention to order minimums, top-selling categories, Prime member behaviors, and geographic eligibility to position your products for success.

Selling on Amazon Fresh opens up amazing possibilities to engage millions of loyal Prime members and grow your ecommerce brand in 2023.

Let me know if you have any other questions!