What's The Difference Between Amazon Fresh And Whole Foods?

If you're one of the millions of customers who order your groceries online through Amazon or shop at premium health food retailer Whole Foods, you might be wondering about the apparent crossover between these businesses. Both Whole Foods and Amazon Fresh are major brands in the grocery retail space (though neither is considered the largest grocery chain in the U.S.), but ever since Amazon bought Whole Foods back in 2017, it's become harder to tell them apart.

It's especially confusing since Amazon offers the option to shop the entire Whole Foods catalogue online — fresh foods included. So what makes Whole Foods distinct from Amazon Fresh? For one thing, they began as entirely separate businesses and still operate semi-independently. Whole Foods got its starts as a brick-and-mortar natural foods store in Austin, Texas, in 1980, and though it has since massively expanded and branched into online ordering (attracting some controversy along the way), the focus of the business still remains on its physical locations.

Contrast that with Amazon Fresh, which launched in 2007 as Amazon's online-only grocery delivery service, but has since opened up a number of physical locations notable for their cashier-less checkout models. These days, both Whole Foods and Amazon Fresh are owned by parent company Amazon, but while much of the technology they use is the same, the two brands still have different images, business models, and mission statements.

Let's first examine the brick-and-mortar shopping experience for each brand. Whole Foods has over 500 locations in the U.S., Canada, and the U.K., while Amazon Fresh is relatively new to the world of physical stores and currently operates 60 locations across seven U.S. states.

Amazon Fresh stores were originally known for their Just Walk Out checkout technology, which tracked customers' purchases while they shopped using surveillance methods. As of April 2024, however, they've phased out the controversial technology, and now rely primarily on Dash Carts, shopping carts equipped with a checkout scanner and screen, along with self-checkout counters (which require a certain etiquette). While you don't need to be a Prime member to shop at an Amazon Fresh store, you do need an account to use the Dash Carts, so these stores are most likely to attract regular Amazon customers who value efficiency.

Most Whole Foods stores continue to operate similarly to how they did before the Amazon acquisition, with a large stock of high-end, health food-oriented inventory, beloved prepared foods, and a mix of cashiers and self-checkout lines. However, a select few Whole Foods stores also used to feature the Just Walk Out technology and several now use Dash Carts as well. That's not the only way that Amazon has left its mark on the Whole Foods chain, though. Whole Foods stores have become a convenient place to drop off Amazon returns, and Prime members get plenty of in-store perks, including discounts and exclusive deals like BOGO sushi.

The central factor that distinguishes Whole Foods from Amazon Fresh is their respective branding. Long before Amazon acquired the company, Whole Foods built a brand as a high-end destination for organic foods with an emphasis on healthy living, while Amazon Fresh bills itself as a more generalized, affordable, and convenient alternative to mainstream grocery stores. These brand identities extend to their online shops, which helps explain why Amazon keeps them separate.

Even though you can order both Amazon Fresh and Whole Foods groceries online through the Amazon website, your respective orders will be tallied in two separate carts. They are reportedly sourced from different warehouses, as well, and some Whole Foods orders may come directly from your nearest brick-and-mortar store. According to Supermarket News, however, as of October 2024, Amazon is testing out a new strategy that will allow customers to combine orders across Amazon brands.

In addition to featuring a more curated, premium, and often higher-priced selection of items, Whole Foods' online store also charges a more expensive delivery fee than Amazon Fresh. Prime members are charged a $9.95 service fee for their Whole Foods delivery order, which increases to $13.95 for Non-Prime customers. In contrast, Amazon Fresh uses a tiered pricing system for service fees based on the price of your order, and all non-rush orders over $100 are free for Prime members.