Amazon lets merchants sell goods with Prime benefits on their own websites

Amazon announced one new initiative called Buy With Prime that extends the scope of its Prime subscription service beyond the borders of – a major shift in its business strategy that could help it compete with fast-growing rival Shopify.

Merchants who ship products through Amazon’s warehousing and delivery services (known as Fulfillment by Amazon) can add Buy with Prime buttons to their websites. This allows Prime subscribers to shop directly from these stores while still taking advantage of Amazon’s subscription service. Namely: free shipping, next day delivery and free returns.

Buy With Prime will offer additional convenience and value to Prime subscribers, but for Amazon it’s about more than generating additional Prime revenue. The launch of Buy With Prime is also an extension of the company’s sizable presence in the logistics sector (the business of actually moving physical items) and a way to fend off rival e-commerce platform Shopify (which allows merchants to quickly build their own storefronts ). ).

A common complaint against Amazon by merchants is that Amazon tightly controls their relationships with customers. If you resell your products Amazon.comhave the advantage of offering your goods in one of the largest storefronts on the web, with programs like Fulfillment by Amazon and Amazon Prime making delivery easier and faster for both you and your customers. But Amazon is also looking over your shoulder, collecting data on what you sell with the threat that it will clone your product and put you out of business. (Pretty much what the company has been accused of on various occasions antitrust lawsuits.)

For this reason Shopify did so well against Amazon. It doesn’t have its own marketplace for buyers (you don’t go to to buy toilet paper and curtain rods), but instead offers small and medium-sized businesses tools to quickly set up their own stores while theoretically emulating the ease and simplicity of the Amazon shopping experience.

However, by offering Prime benefits on retailers’ own websites, Amazon is somewhat relaxing its grip on that customer relationship, potentially easing tensions with retailers. As one Amazon executive points out the blog post announcing the initiative: “Enabling merchants to offer Prime Shopping benefits in their own direct-to-consumer online stores is an exciting next step in our mission to help merchants of all sizes grow their businesses.”

These benefits are not free, however, and Amazon will charge merchants various undisclosed fees to offer “Buy With Prime” buttons on their websites. “With no fixed subscription fee or long-term contract required, merchants can add to or cancel choices at any time,” Amazon says. Amazon lets merchants sell goods with Prime benefits on their own websites

Fry Electronics Team

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