Tech

‘Buy with Prime’ allows third-party retailers to use Amazon’s shipping service


Amazon has revealed “Buy with Prime“a service that allows other online retailers to use its extensive delivery network to fulfill orders on their own websites. At the same time, it will be another privilege for consumers. subscribe to Prime for goods they might not find directly on Amazon.

Sellers who use it will be able to place Prime badges on their own website next to eligible items available for free next-day or two-day shipping. Prime members can then purchase products using payment and shipping details already stored on their Amazon account.

The merchant will pay for the service for a fee depending on the card processor, implementation and more. To start, it’s launching by invitation to Amazon sellers who already use Fulfillment by Amazon (FBA), but will eventually expand to other sellers, even if they’re not on Amazon.

FBA retailers now pay to store inventory in Amazon’s warehouse and use their shipping service, and in return, get a valid Prime logo on products listed on Amazon. Amazon recently announced that they would charge an additional 5% fuel and inflation surcharge on top of the FBA fees they had already paid. It also has a program called Multi-channel implementation allows retailers to store and ship goods using its logistics chain.

However, using FBA can seem like a deal with the devil for some sellers. In the past, Amazon has been accused of using seller data to create its own branded products such as car trunk openers and Top designer bag, The Wall Street Journal reported back in 2020. Amazon denied this, but the SEC recently launch an investigation into reality.

Buying with Prime also means Amazon will be in direct competition with shipping services like FedEx and UPS. The company recently said that it is about to become the largest delivery service in the US, according to CNBC. It also recently reported that its third-party seller services, which include shipping, fulfillment, and others, brought in $30.3 billion in the last quarter alone.

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