The launch of the Buy with Prime service will allow third-party retailers to ship and fulfill their orders using Amazon’s network:
- Third-party retailers can take advantage of Amazon’s Prime shipping and fulfillment network for orders placed on their website
- Prime members can use payment and shipping information stored in their Amazon account to order items from other retailer’s website
- Prime delivery service will only be available by invitation to some Amazon merchants as the company lays down plans to make it more widely accessible in the future
Amazon will allow other online merchants to use its Prime services to deliver goods quickly to their customers. In a more to compete more effectively with UPS and FedEx, Amazon launched Buy with Prime, a new service that allows third-party merchants to use its vast shipping and logistics network to fulfill orders on their websites while appealing to over 200 million Amazon Prime customers.
How Buy with Prime Works
Third-party merchants will put the Prime badge on their website next to items eligible for free next-day or two-day delivery. When placing an order, Prime members will only need to use the payment and shipping information stored on their Amazon account instead of creating a new account.
Although the move is meant to attract more third-party merchants, it will not be free. Buy with Prime will come with varying pricing that depends on the payment processing, storage, fulfillment, and other costs.
Who Can Use Buy with Prime
Initially, the Buy with Prime service will only be available by invitation to the seller using Fulfillment by Amazon (FBA). This includes merchants who pay to have their inventory stored in Amazon’s warehouses and use the company’s supply chain and shipping operations. The service will later be extended to other merchants who are not selling on Amazon.
Why Buy with Prime is Attractive
Amazon has put in place strategies to offer the fastest online delivery services. The company has been plowing back its profits into physical expansion, attracting shipping partners, and growing its fulfillment partnerships across the country to achieve same-day and two-day delivery. The company has also amassed a fleet of its own trucks, drivers, and plans to speed up the delivery of packages to customers’ doorsteps.
Industry watchers speculate that Amazon’s growing in-house logistics operation aims to compete directly with major careers like FedEx, UPS, and US Postal Service. Amazon already handles orders for products sold on other websites through the Multi-Channel Fulfillment. It allows sellers to store and ship products using Amazon’s services even when they are not selling on the home site. Before the coronavirus pandemic, Amazon offered a service where its drivers picked up packages from retailers and delivered them to consumers before they became overwhelmed with online orders.
Buy with Prime Expected to Boom
Buy with Prime will likely remain small at launch, but is expected to grow into a lucrative service. In a similar trend, the Amazon Web Services (AWS) started as an internal tool become becoming a highly sort-after service. With a growth of 11% in third-party sellers to $30.3 billion in the latest quarter, the potential for the Buy with Prime Service cannot be overlooked.