Amazon extends reach of Prime shopping
Amazon Prime members can now receive the program’s benefits for a wider range of purchases.
Amazon is launching a new program called “Buy with Prime” that enables U.S.-based Prime members to directly shop online stores on its third-party marketplace. Prime members will obtain the same benefits they get when directly shopping the Amazon site, such as fast, free delivery; seamless checkout; and free returns on eligible orders.
Buy with Prime will initially be available by invitation only for third-party retailers using the Fulfillment by Amazon (FBA) hosted logistics service, and will roll out through 2022 as retailers are invited to participate, including those not selling on Amazon or using FBA.
Prime members will see the Prime logo and delivery guarantee on eligible products in participating retailers’ online stores. The logo signals the item is available for free delivery, as fast as next day, with free returns. When shopping with Buy with Prime, Prime members will use the payment and shipping information stored in their Amazon account and receive shipping and delivery notifications after an order is placed.
Retailers already using FBA can add Buy with Prime to their online store within minutes, because their inventory is already stored in Amazon fulfillment centers. To get started, retailers sign up for Buy with Prime, link an Amazon Seller Central account, use multi-channel fulfillment to offer one pool of inventory for multiple channels, and link an Amazon Pay account to offer a seamless checkout experience for Prime members.
Then, by installing a JavaScript widget in their online store, retailers can add Buy with Prime to one or more products. Participating retailers will receive shopper order information, including email addresses for customer orders, which they can use for customer service and CRM purposes.
Amazon says Buy with Prime is designed to work with most online stores, including e-commerce service providers such as BigCommerce. Pricing for the program is based on a service fee, a payment processing fee, and fulfillment and storage fees that are calculated per unit. No fixed subscription fee or long-term contract is required, enabling retailers to expand selection or cancel at any time.
Amazon is expanding the benefits of Prime for customers and offering them to third-party retailers as it is also increasing some charges for both. In February, Amazon announced that it is raising the price of its Prime membership, citing the “continued expansion of Prime member benefits as well as the rise in wages and transportation costs.” The monthly fee for membership in the United States will increase from $12.99 to $14.99, with the annual membership going from $119 to $139. This is the first time Amazon has raised the price of Prime since 2018.
And earlier in April, Amazon said that starting April 28, 2022, a 5% fuel and inflation surcharge will be applied to existing FBA fulfillment fees for Amazon Marketplace participants selling in the U.S. Amazon said the surcharge is subject to change.
“We always aim to exceed Prime members’ expectations by offering more selection, exclusive deals, quality content, and convenient features,” said Jamil Ghani, VP of Amazon Prime. “With the introduction of Buy with Prime, we’re expanding where members can enjoy trusted and convenient Prime shopping benefits beyond Amazon, adding even more value to their membership. Members will have the flexibility to shop from merchants directly, all while enjoying the fast, free delivery, seamless checkout, and easy returns they’ve come to know and love from Amazon.”
“For over 20 years, we’ve been empowering small and medium-sized businesses with opportunities to grow,” said Peter Larsen, Amazon VP of Buy with Prime. “Allowing merchants to offer Prime shopping benefits on their own direct-to-consumer online stores is an exciting next step in our mission to help merchants of all sizes grow their business—whether on Amazon or beyond. With shoppers purchasing directly from merchants’ online stores, Buy with Prime will allow merchants to build customer relationships and brand loyalty while offering conversion-driving benefits like fast, free shipping.”