Why does Instacart Charge more than the Store?

Why does Instacart Charge more than the Store?

The price paid for the product on Instacart might be charged higher than the stores. The price of items on Instacart is usually marked up more than its original price in stores. Additionally, delivery fees and service fees are charged on each order making it pricier than its original cost. Here, let’s know ‘Why does Instacart Charge more than the Store?’

With the busy schedule of people, many of us prefer groceries delivered and sometimes we don’t mind paying extra for it. But, how much are we paying extra and is it worth standing in a queue in a supermarket?

Let’s try to find out, is Instacart charging its customers more for the items and, if so, does paying extra justify the comfort of delivery that we are getting.

Instacart

Instacart provides a platform where you can shop from various grocery retailers and it will be delivered at your convenience. It is a grocery delivery service that also delivers alcohol. Instacart is functional across the United States and Canada. 

Instacart has an app for shopping and can also be done on their website. You do not necessarily need to be a member to shop from Instacart. 

Are you paying extra on Instacart?

The prices of the items on the Instacart marketplace are uploaded by the retailers themselves. Now it’s up to retailers whether they quote the same price as the store or higher.

Not all retailer’s item prices will be higher than the store. Retailers who have partnered with Instacart, like Whole Foods, Sprouts Farmers Market, quote the price similar to the store price. While the store that has not partnered with Instacart might set the price higher than their store.

Additionally, in-store prices keep fluctuating daily and the same cannot be done on the site. Instacart keeps a margin of 15%+ markup on that as well for some stores.

How much does Instacart charge?

Avoiding anything extra, Instacart on a normal order price adds service fee and delivery fee.

A delivery fee of $3.99 is charged, on minimum grocery shopping of $35 for same-day delivery. If your order costs less than $35 and is to be delivered within one hour then, the cost will vary. Similarly, if the deliveries are from club stores then, they might be charged more.

If your order is for pickup, then they charge you a pickup fee.

Instacart charges a separate service fee of 5% for the orders, and the cost of it will vary depending upon the quantity of your order and from which place you are ordering. It also depends on the order type, like alcohol has a service fee which is charged separately.

A heavy fee is applied on orders weighing above 50lbs. So, if you are purchasing something heavy, it will cost you more for delivery.

A long-distance service fee is charged on the orders if the retailer is 30-60 minutes far from the delivery spot. It is equal for Express and non-Express members.

Apart from these charges you are encouraged to tip the delivery person making the delivery. 

Is it worth paying extra?

As mentioned above, not all retailers mark up the price. You can specifically choose to buy from their partnered store. 

There are additional costs but you get the groceries delivered at your convenience.  Instacart has also made grocery shopping easier and, with all the strict norms of social distancing due to covid, it is a very viable and thriving business. 

For senior citizens, this platform is specifically a great option.

Conclusion

Instacart is a grocery delivery platform from where you get the option of purchasing from more than 300 retailers. The items are delivered on the same day for a delivery fee of $3.99 for shopping of $35 and above. 

The prices of items on the site, are set by the retailers, and mostly the partnered retailers set it similar to store prices but, some retailers who are not partner stores can set it higher. 

Price of items along with a delivery fee, service fee, and other additional charges depending upon the items purchases can be costlier than in-store purchase.

FAQs

  1. Does Instacart deliver non grocery items?

Yes, Instacart has started delivering prescription drugs and alcohol.

  1. How to contact Instacart?

Instacart has separate customer support and shopper support, to reach them you will have to first log into your shoppers’ account. They can also be contacted on the community helpline number 1(888) 246 7822.

  1. Can I get a waiver on the delivery and service fee?

Instacart offers a membership called Instacart Express. The membership can have an annual or monthly subscription. It is charged $9.99 monthly or $99 for an annual subscription.

Its benefit includes a complete waiver of the delivery fee and a reduced service fee on orders above $35.

  1. Retail stores partnered with Instacart?

Under Instacart, you can shop from more than 300 big and small local retailers. Instacart has partnered with Sprouts, Costco, Kroger, Publix, Sam’s Club, CVS, Loblaw, Wegmans, Albertsons, ALDI, and many others.

Why does Instacart Charge more than the Store?

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