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US-based e-commerce platform is offering customers $10 to collect their orders at the company’s pickup points rather than opting for home delivery.

Reuters reported that the company communicated news about the incentive to some members of its Prime subscription programme in the last few days.

The company is offering customers $10 if they pick up their order with a minimum value of $25 at locations such as Amazon Fresh, Whole Foods or Kohl’s stores.

The move is part of the company’s efforts to cut costs associated with product delivery and return amid low consumer demand.

Shipping consultant based in New York Dean Maciuba highlighted that the increasing use of pickup points would provide an opportunity for Amazon to avoid the costs associated with the dropoff of orders at customers’ home addresses.

He added that the move should encourage consumers to return products directly to the company.

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By GlobalData

In separate news, Amazon is now charging a $1 fee for customers returning packages via a United Parcel Service store rather than tendering the returns at a nearby Amazon location.

The latest move comes after the company has recently taken several measures to reduce delivery-related costs across its operations.

In 2022, the company raised the price of its annual Prime membership, which includes free shipping benefits on eligible items, to $139 a year from $119.

Earlier this year, the e-commerce retailer increased the minimum order value to be eligible for free grocery delivery to $150.

Other recent moves of the company to cut costs include allowing Prime members to choose a day of the week to get all of their packages delivered.