Amazon has announced that it is extending its Prime Delivery Service to independent eCommerce merchants. The program will let merchants put a “Buy with Prime” button next to eligible items on their own e-commerce sites.
The initial rollout will be by invitation only to those who use the Fulfillment by Amazon warehouse and shipping service, but it will eventually open even to merchants that don’t, the company said.
Amazon states that participating merchants won’t be required to have the same prices and selection on their own sites as they do on Amazon.com, and they won’t need to sell on Amazon.com to participate in the program.
The move will allow small businesses to take advantage of the same 2-day shipping options that Amazon Prime members have come to enjoy. In addition, Amazon will provide free shipping on orders over $25 for these merchants. The new service will be available to merchants in the United States, Canada, and Mexico. This is a significant expansion of the Prime delivery service, available only to Amazon customers until now. This will increase competition in the eCommerce space, as small businesses will now have access to the same shipping benefits that have been a critical differentiator for Amazon. This move will allow Amazon to tap into the $1.9 trillion global eCommerce market and compete with other delivery services such as UPS and FedEx.
The Buy With Prime program helps Amazon’s bottom line with the fees it will charge merchants, but also with the troves of data that will give Amazon better insight into the shopping habits of Prime members.
This extension of the Prime Delivery Service is a win-win for both Amazon and small businesses. The move will also give small businesses access to Amazon's massive customer base. Independent eCommerce merchants will now be able to use Amazon's fulfillment centers and delivery infrastructure to reach Prime customers.
The program is seen as a way for Amazon to increase its reach and market share and drive more sales through its Prime membership program. Amazon Prime has an estimated 60 million members in the U.S., who spend an average of $1,300 per year on Amazon products. The Prime Delivery Service is an excellent way for Amazon to support small businesses and help them compete against larger rivals.
In addition, it gives Prime members even more value for their membership, as they can now take advantage of free two-day shipping on a more significant number of items. With this latest extension, Amazon demonstrates its commitment to both independent sellers and its own Prime members.
The extension of Amazon Prime Delivery to eCommerce merchants is just one of the many ways that Amazon is looking to grow its business. In recent years, the company has also expanded into new markets such as groceries and fashion, and it is now one of the largest retailers in the world.
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