Online retailers are likely to integrate Amazon Prime into their platforms imminently.
Amazon's blue Prime logos might soon pop up in various online stores across the web, even if you're not browsing Amazon.com. With the aim of broadening the scope of its sought-after Prime subscription service, Amazon plans to permit merchants to pay for incorporating the Prime checkout experience onto their own online platforms. This would allow them to provide Amazon's renowned quick shipping service.
On Thursday, the corporation announced "Shop with Prime," a new advantage for American Prime members, enabling them to directly purchase items from non-Amazon merchants' sites. Products eligible for this service will display the Prime logo, and customers can complete their purchase utilizing the payment and shipping details saved in their Amazon accounts. The process is rather similar to purchasing on Amazon's own platform, with customers receiving delivery notifications once they've submitted an order.
"Shop with Prime" is the latest perk offered to Amazon's 200 million Prime members, who pay an annual membership fee of $139. Other benefits include one-day delivery, access to Prime Video, discounts at Whole Foods, and free Kindle ebooks. Given that they can spend up to four times as much as regular customers, Amazon's treatment of them is hardly unexpected.
Jamil Ghani, vice president of Amazon Prime, commented in a press release, "With the introduction of Shop with Prime, we're extending the locations where members can enjoy the trusted and convenient Prime shopping benefits beyond Amazon, adding further value to their membership. Members will now have the flexibility to shop directly from merchants, while still enjoying the quick shipping, seamless checkout, and easy returns they've come to appreciate from Amazon."
Shop with Prime will not replace all checkout options on a merchant's site but will be presented as an additional choice.
From the merchants' perspective, Amazon is promoting Shop with Prime as a new strategy for sellers to boost their online sales by adopting a service that customers already have faith in. Merchants do not necessarily have to sell their items on Amazon's main platform to offer the Prime checkout option. Furthermore, Amazon argues that Shop with Prime simplifies the checkout process, increasing the likelihood of a purchase completion.
Of course, this service comes with a price tag.
According to the FAQ section on Amazon's Shop with Prime merchant site, the cost of utilizing the service depends on various factors such as product dimensions and weight, average selling price, and number of units per Shop with Prime order. The expense of returns, a significant aspect of Prime membership, will be incorporated into the overall price for merchants.
Amazon writes in the FAQ section, "Merchants pay for what they use, and all fees, except for those associated with storage, are charged only after merchants make a sale."
While this might seem reasonable at first glance, it's ultimately up to the merchants to determine if the cost is worth the investment. Considering Amazon's reputation for exerting pressure on its sellers, some may find themselves with little choice but to give in.
Shop with Prime is currently available on an invitation-only basis to merchants using Fulfillment by Amazon, a service where businesses ship their products using Amazon's extensive logistics network. The feature is expected to be rolled out to other merchants throughout 2022.
The expansion of Amazon's Prime service through 'Shop with Prime' is expected to revolutionize the future of online shopping, as tech companies continue to shape the technological landscape. By incorporating the Prime checkout experience onto their platforms, merchants can leverage Amazon's reputation for quick shipping, leading to potential increases in sales.
With the introduction of 'Shop with Prime', Amazon is positioning itself as a key player in the tech-driven future of e-commerce, offering a streamlined shopping experience to its 200 million Prime members and potentially compelling non-Amazon merchants to join the platform.
