Amazon Fresh had its own (timely and reliable) delivery network and reusable plastic storage crates (often insulated). It seemed like a more eco-friendly & premium service compared to Amazon Prime.

That's a tough one - considering the blurry definition of "grocery item", they'll end up with a lot of frustrated customers who find they need a premium upgrade for the privilege of buying from Amazon.

For example, you can buy a Philips electric razor through Amazon Prime, but refill cartridges are only available through Amazon Fresh. The result: I made my first online order with Walmart and will probably make many more in the future.