What’s the cost? According to Amazon, retailers only pay for what they use, with pricing based on a service, payment processing, and fulfillment and storage fees that are calculated per unit. There is no single, fixed subscription fee and the company doesn’t require long-term contracts. Retailers are free to offer as little or as many products as they’d like within the program.
Amazon stated the benefit will work with most online stores, including e-commerce and providers like BigCommerce. Troy Cox, senior vice president of product at BigCommerce, said the extended benefits will help elevate online shopping experiences, build brand loyalty, and power brands to help them grow and scale.
A Long-Term View
Who wins out in this type of partnership? While the opportunity certainly allows consumers to step away from Amazon while still receiving Prime membership benefits, the company can now tap into new markets and form relationships with brands that don’t currently sell on Amazon. Additionally, it will highlight the benefits of becoming a Prime member, perhaps enticing consumers who are not yet participants.
Neil Saunders, managing director of GlobalData, said in an emailed statement that Amazon may also benefit from gaining deeper insights into consumer behavior, giving it access to data from orders fulfilled by new companies it is working with.
“Of course, this aspect may deter some merchants from doing business with Amazon,” added Saunders. “That said, the benefits of being able to offer a Prime guarantee on things like delivery will outweigh the concerns for many as Amazon’s service levels will help traffic and conversion rates.”
Prime By the Numbers
- Number of people in the program: 172 million-plus, according to Consumer Intelligence Research Partners
- Type of program: Paid subscription
- Cost to join: $139 annually if paid upfront, $180 if paid monthly
MaryRuth Organics is one company looking to benefit from the partnership. President David Ghiyam stated that Buy With Prime will be a game changer for the brand.
“Prime members will enjoy the trust and familiarity they have with shopping on Amazon while connecting with our business directly on our own site,” Ghiyam added. “Using Buy with Prime, we will be able to drive the conversion we’ve experienced with Fulfillment by Amazon while running our business on our own site.”
Jamil Ghani, vice president of Amazon Prime, said the company is expanding where its members can enjoy “trusted and convenient Prime shopping benefits beyond Amazon.
“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,” said Ghani.