Amazon boldly innovates delivery

Going head to head with Walmart is paying off

Online grocery delivery has so far failed to catch on in the US, but Amazon may have found a way to convince you to try it: free shipping.

That's right, the king of e-commerce on Tuesday said it dropped the fee for its Amazon Fresh grocery service from $14.99 a month (or $179.88 a year) down to zero. You still have to be a Prime member, which costs $119 annually, to use Amazon Fresh.

The change undercuts rival Walmart's new Delivery Unlimited program, which costs $12.95 a month and was just introduced in September.

"We think this offering is going to be a game changer and will grow into one of the most loved benefits of Prime," Stephenie Landry, Amazon's vice president of grocery delivery, said in an interview.

To avoid overloading its network with new orders, Amazon decided to allow its current Amazon Fresh and Whole Foods delivery customers to start using the service for free first. Everyone else will have to request an invite, with Amazon adding new folks on a rolling basis daily. Amazon Fresh is available in 21 major markets, so you should check if your ZIP code is included before piling up an order of seafood, ice cream and milk.

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