Today I'm here watching Amazon's next conquest to expand the number of eCommerce sales flowing through their warehouses.
Trickling into DTC sights are bright blue buttons saying “Buy with prime” with the expected delivery date displayed over top signaling a new frontier for everyone’s favorite rainforest. Amazon's next conquest looks to expand the number of eCommerce sales flowing through their warehouses. Amazon commands 40% of all eCommerce sales. Now Amazon has set its eye on fulfilling as much direct-to-consumer business as possible. With excess warehouse space and fulfillment, capacity amazon sees fulfillment as a service as another opportunity to take a slice of the 60% of eCommerce sales that happen outside its native platform.
The consumer appeal is simple. Using Amazon account information, customers can breeze past payment and shipping options. Quick amazon sign-in to give access to payment and delivery information. Tracking and delivery notifications flow through the amazon app and the peace of mind that your product will be delivered through Prime.
Amazon is looking to cash in on the years of happy customers that have made prime a staple in the eCommerce world and the goodwill that comes with the promise of prime fulfillment as they move to make fulfillment as a service another multi-billion dollar revenue stream in the coming years. Analysts estimate this could be as much as $10 billion in added revenue for Amazon.
Enrollment is limited but we are starting to see a couple buy with primeWatch for more to roll out in the coming weeks and months.
Unless you live under a rock you probably know that prime day has been set for July 12th. We consistently see a 15% increase in unit sales and revenue every year on Prime Day. What kind of a bump do you see? What tactics are you trying this year?
Make the switch to a 3PL provider like Deliverr that offers FBA-compliant prep expertise for any situation. Combine with their Reserve Storage services to connect your inventory to your demand. Learn more about Deliverr Prep here (Sponsored)
Fulfillment fees predictably are rising. Look at your NARF margins today as Amazon is updating what it costs to send across the border. I've heard some rumors that Brazil is going to arrive in the NARF program. That's exciting.
An "Invite Only" program for low supply products. Amazon is a real time reflection of supply and demand. Look at the baby formula crisis to see how Amazon is curbing panic buying and arbitrage opportunities. I think this is a good thing, but will likely fail a few times as hackers usually outsmart the system.
My Amazon business, BuyBoxer is going from two warehouses to one. We have a warehouse space primed for FBA prep at scale. Do you know anyone interested?
We analyzed a very large aggregator with SmartScout data. We have a full report coming out soon, but across the 100+ brands they own they are not looking great. Stay tuned to see who it is and you can jump into the data yourself.