Amazon.com launched a new incentive program that pays customers $10 to pick up their purchases from one of its approved pick-up locations.

As reported by Reuters, customers who retrieve an order of $25 or more at company pick-up places such as Whole Foods, Amazon Fresh, or Kohl's will be eligible for the deal. 

The plan is being implemented as Amazon and other retailers seek to minimize costs for home delivery and returns in the face of low consumer demand.

Amazon Reducing the Cost of Delivery

Amazon's online store sales took a hit in the fourth quarter, dropping by 2% to $64.5 billion from $66 billion during the same period last year. The e-commerce giant reported a net loss of $2.7 billion in the entire year, a significant decline from the previous year's profit of $33.4 billion.

According to shipping specialist Dean Maciuba, boosting the usage of Amazon pick-up locations might help the company avoid costly residential package drop-offs, creating "a huge opportunity for Amazon to reduce the cost of delivery." 

He also feels that it will assist train customers to return things directly to the company.

Amazon's shift to pick-up stations underscores the company's aim to decrease delivery-related costs. 

The company has pushed customers to have all their items delivered on a specific day of the week, raised minimum order requirements for free food delivery, and expanded faster same-day parcel delivery with a cost for orders under $25. 

Amazon worked for years to ready customers to anticipate speedy, no-fee deliveries and returns, but now that the firm is tightening its belt after a period of spectacular expansion, it is undertaking multiple measures to lower its delivery-related expenses.

Reducing Delivery Returns Rate

Using Amazon pick-up sites will also help reduce the quantity of returns handled by the company. 

In case you missed it, Amazon has begun charging some customers a $1 fee if they return products via a United Parcel Service (UPS) shop when an Amazon pick-up/return facility is closer to their delivery address. The Information news site broke the story first.

Shipping corporations such as UPS and FedEx have urged their customers to use so-called access points, particularly in rural areas where delivery to remote addresses might be prohibitively expensive.

Read Also: Amazon Pauses Expansion of Fresh Grocery Stores for Evaluation

Amazon's usage of pick-up stations would decrease expenses and allow the corporation to create closer relationships with its customers.

Is It Worth It?

While the $10 incentive may not appear to be substantial to buyers, it may be worth taking advantage of. It is important to note that the feature is offered to Prime members. 

While retrieving the order may involve a little extra effort, it could save the consumer the trouble of waiting at home for a delivery or dealing with a missed delivery.

Amazon's new pick-up point incentive system highlights the company's efforts to reduce delivery costs. It is a great opportunity for the business to avoid costly home package drop-offs while also strengthening relationships with its consumers - yet the company should consider options for those who cannot afford pick-ups.

Customers may have to put in a little extra work, but the $10 incentive is worth considering, especially if they reside near a pick-up point location.

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