CNBC reports that Amazon, looking to improve its Prime value proposition, is pushing third-party vendors selling on its Marketplace but shipping themselves to improve their delivery standards.
According to the story, "Amazon informed sellers on Tuesday that, starting in February 2021, it will require members of its Seller Fulfilled Prime program to provide nationwide delivery coverage and support Saturday delivery and pick-ups.
"The SFP program, launched in 2016, enables third-party merchants to make inventory eligible for two-day shipping without paying for Amazon’s fulfillment services, Fulfillment By Amazon.
"The changes will help Amazon ensure that products with the Prime badge are on par with the company’s customary two-day and, increasingly, one-day delivery times. Prime subscribers pay an annual fee of $119 to get perks like free, fast shipping, streaming services such as Prime Video and Prime Music, and benefits like discounts at Whole Foods."
- KC's View:
The numbers are clear and well-known. Amazon Prime members spend more than double on Amazon than non-Prime members. Therefore, it makes sense for Amazon to do whatever it can to drive up ther breadth of prime's value proposition. (Though I have to wonder if this also will drive some vendors to switch over to Fulfillment By Amazon, just because it may be easier.)