With “Buy with Prime” Amazon turns into a carrier

Amazon has unveiled the launch of a new feature allowing third-party sellers to tap into its extensive logistics network for orders made on their own site. In this way, the e-commerce giant would directly compete with the number 1 in delivery across the Atlantic, such as FedEx or UPS.

Use Amazon Prime for your own site

The new tool is called Buy with Prime and, as its name suggests, it will allow participating merchants to use the Amazon Prime service for products offered for sale on their site and therefore attract some 200 million customers. subscribers to the Prime service. These websites will be able to display the Prime badge next to items eligible for free same-day or next-day delivery, while Prime members will be able to use the payment and delivery information stored in their Amazon account to place an order. Explain CNBC.

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For starters, Buy with Prime will be invite-only with a handful of sellers who use Fulfillment by Amazon, or FBA. It is a paid service allowing them to store their merchandise in Amazon warehouses as well as use the company’s supply chain and shipping operations. Eventually, this service will be extended to other merchants, including those who do not sell on Amazon. There too, he will be charged with an amount varying according to, among other things, the processing of payments, the execution of orders and storage.

This is not the first time that Amazon has offered such a service. Previously, the firm allowed its drivers to pick up packages from retailers for delivery to consumers. However, the latter had to be interrupted at the start of the pandemic when Amazon found itself overwhelmed with online orders. In addition, it has a program called Multi-Channel Fulfillment that allows sellers to store and ship products using Amazon’s services, whether or not they sell on the original site.

An Amazon warehouse

Some third-party sellers can already store their merchandise in Amazon warehouses through a paid service. Photography: Ruchindra Gunasekara / Unsplash

Number 1 in e-commerce, number 1 in cloud computing… and number 1 in delivery?

For several years, the company has multiplied its efforts to improve its delivery services and make them faster. It is thus reinvesting its profits in its physical expansion, by developing its fulfillment centers and shipping partnerships to offer same-day and two-day deliveries in more markets. Amazon has also equipped itself with a large fleet of drivers, trucks and planes to deliver packages quickly.

Although the firm has experienced failures like Prime Air, these efforts are paying off as last quarter third-party seller services, which include commissions, fulfillment and shipping fees, as well as other services, increased by 11% compared to the same period of the previous year. They reached $30.3 billion in revenue. Eventually, Buy with Prime could also become a major revenue engine for the company.

If you think about it, one of Amazon’s most successful businesses started as an in-house tool. This is AWS [Amazon Web Services], sure. They built this huge logistics company initially for their own needs and now they are starting to make it their own service. explains Bob O’Donnell, founder and chief analyst of Technalysis Research.

Last year, Dave Clark, Amazon’s Consumer CEO, said Amazon would become the largest delivery service in the United States by early 2022. It could thus become number 1 ahead of the United States Postal Service. , FedEx or UPS.

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