Amazon To Offer $10 Reward To US Customers For Picking Up Purchases: Here's Why

Amazon has recently implemented a $1 fee for customers who choose to return packages via a United Parcel Service (UPS) store.

Amazon, the leading e-commerce giant, has introduced a new incentive for its customers in the US, aiming to minimise costs associated with home delivery and returns during a period of sluggish consumer demand. Prime subscribers have recently received personalised emails from Amazon, offering them a $10 reward for collecting purchases exceeding $25 from designated pickup points, which include popular locations like Whole Foods, Amazon Fresh, and Kohl's stores. Although Amazon has not yet commented on this initiative, the response from customers has been varied, reported Reuters.

One such customer who received the offer is Dean Maciuba, a shipping consultant based in Upstate New York. According to Maciuba, the increasing utilisation of Amazon pickup points presents a significant opportunity for the company to reduce the expenses associated with residential package drop-offs. Furthermore, this strategy enables Amazon to educate customers on returning items directly to the company, streamlining the process.

In a related development, Amazon has recently implemented a $1 fee for customers who choose to return packages via a United Parcel Service (UPS) store, despite the presence of a more convenient Amazon pickup/return location closer to their delivery address. This change, initially reported by The Information, aims to encourage customers to utilise the company's own pickup facilities.

Major shipping companies like UPS and FedEx have long promoted the use of access points, especially in rural areas where delivering to remote addresses proves economically burdensome. Over the years, Amazon has trained its customers to expect fast and fee-free deliveries and returns. However, with the company now seeking to optimise its operations after a period of rapid expansion, it has taken several steps to reduce the costs associated with delivery services.

One notable action was the price increase of its annual Prime subscription, which includes free shipping benefits. The subscription fee was raised by $20, reaching $139. Additionally, Amazon has raised the minimum order thresholds for free grocery delivery and encouraged customers to consolidate their deliveries on a designated day of the week. Furthermore, the company has expanded its same-day parcel delivery service, albeit with a fee applied to orders below $25.