Amazon asks US sellers to pay for faster delivery as it expands same-day service | Today’s news
Amazon is reaching out to sellers who use its fulfillment network as it seeks to expand one of its fastest delivery options, with some merchants being asked to pay more to get their products into the Sub-Same Day program.
Amazon is asking US sellers to pay for faster delivery
The e-commerce giant has asked select sellers using the Fulfillment by Amazon service, commonly known as FBA, to submit bids on their products to become eligible for same-day delivery, according to an email sent to sellers earlier this month.
The program promises a significantly faster experience for shoppers. Amazon says eligible orders can arrive in as little as two hours after being placed, and the service is currently available in 2,300 metro areas.
For sellers, the appeal is obvious. Faster delivery can make a product more attractive to customers browsing Amazon, especially when several merchants offer similar items. Amazon itself emphasized the potential commercial benefit in its message to sellers, saying that products offered through same-day delivery “saw an average of 12% higher sales” than products delivered through regular FBA.
The move also shows how Amazon continues to experiment with the economics of its large-scale fulfillment. Instead of simply expanding the fastest delivery option in its market, the company is asking some sellers to compete for access to the service through bids.
This puts the decision partially in the hands of marketers. Sellers will need to weigh the potential increase in sales against any additional costs associated with ensuring faster delivery of their products.
Fulfillment by Amazon allows third-party merchants to store their inventory in Amazon warehouses while the company handles tasks such as picking, packing and shipping orders. This model has become a central part of Amazon’s marketplace, where independent sellers make up a substantial portion of the products available to shoppers.
Sub-Same Day takes this fulfillment model a step further by prioritizing speed. The service is intended for customers who want an order almost immediately and do not wait for a standard delivery time.
Amazon’s latest push therefore gives sellers an added incentive to pay for visibility through faster fulfillment, while allowing the company to expand the selection of products available for fast delivery. The company did not publicly specify how much individual sellers will have to bid to participate, based on the information provided.
