April 29, 2022
Amazon.com is coming out of a quarter similar to Amazon’s and that’s big news. However, in Amazon’s first quarterly loss since 2015 was the introduction last week of a new program that could give third-party sellers another reason to do business with the platform instead of some of its rivals.
Buy with Prime is a new offering that allows marketplace sellers who participate in the Fulfillment by Amazon program to extend that experience to their own websites. This means that the hundreds of millions of Amazon Prime members will be able to go to a third-party site and enjoy fast, free shipping and returns.
Customers who place orders on Buy with Prime sites will verify their purchases with their payment and shipping information already stored in their accounts on Amazon.
“When we started using Fulfillment by Amazon, our business quadrupled in growth thanks to Amazon’s fulfillment network and our Prime eligible listings. By using Buy with Prime, we will be able to drive the conversion we’ve seen with Fulfillment by Amazon while running our business on our own site,” David Ghiyam, president of MaryRuth Organics, said in a statement.
“Enabling 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 at beyond,” said Peter Larsen, vice president of Buy with Prime. “With shoppers buying directly from merchants’ online stores, Buy with Prime will allow merchants to build customer relationships and brand loyalty while providing conversion benefits like fast and free shipping.”
Amazon designed Buy with Prime to work with most online stores and e-commerce platform providers, including BigCommerce.
“Prime has set the bar for a shopping experience customers trust, including convenient and fast shipping. As one of the leading e-commerce platforms working with Amazon to add Buy with Prime, extending these benefits to our merchants will help improve their online shopping experiences, build brand loyalty and help them grow and evolve,” said Troy Cox, senior vice president. of product at BigCommerce.
It doesn’t look like the Buy with Prime feature is expanding to the Shopify platform. Many articles suggest that Buy With Prime is Amazon’s response to growing competition from Shopify, the company some have called anti-Amazon. Shopify does not subscribe to this characterization.
DISCUSSION QUESTIONS: What will Buy with Prime mean for Amazon, its third-party sellers, and other e-commerce platforms?
“AWS has been a huge revenue stream for Amazon. It won’t be any different.”