AMZTools #9: what's the deal behind Buy With Prime?, Amazon growth slows and more
AMZTools #9: what's the deal behind Buy With Prime?, Amazon growth slows and more
Check the last news on Amazon and other US marketplaces
Can’t believe we just hit 255 subscribers, thank you all and, as usual, let’s keep this newsletter short and straight to the point.
🕵️♂️ What's the deal behind Buy With Prime? My 2 cents
As you may know, Amazon opened up its Prime program to other online stores renaming it “Buy with Prime” and focusing it on the DTC stores.
In other words, you will be able to use Prime to fulfill the orders of your store: BigCommerce, Shopify, Magento, Salesforce...
That is a huge win and it’s different from using Amazon’s old Multi Channel Fulfillment. How? Well, it’s a direct button on your site and it works like the “Amazon Pay” button or the “Pay with Paypal”. Just a few clicks and you’re good to go. No register needed.
Buy with Prime also means that you will have access to more +200M Prime accounts from all over the world, which means your conversion rate will rise, that’s for sure.
But what’s the deal behind Buy With Prime? We used to use Multi Channel Fulfillment to fulfill external Amazon orders (except Walmart and eBay) in 2 days and without sharing (he he he) any customer data.
Could it be because Amazon presented poor results to its shareholders and this is a way to increase its revenue? Could be.
On April 29th, Amazon said that they have “‘too much space' after a massive warehouse buildout during the pandemic”. Do they need more stocks on their FC’s? Could be too.
But I am more inclined to think that what Amazon wants is the data of merchants who sell outside of Amazon, especially those who use Shopify, which is Amazon's direct rival in the US.
Multi Channel Fulfillment is not a well known program, and it sound 0 sexy. Buy with Prime is a no brainer and it’s focused on DTC brands, which are growing and growing and are using Shopify as their primary CMS and selling channel. And Amazon wants that data, no matter what.
What will happen to the fulfillment data? Because we can’t read about that on the landing page.
According to TechCrunch:
Processing information about its Prime subscribers, key details about their shopping habits, behavior and interests across other kinds of sites that are not designed or run by Amazon — all information that it can in turn use to improve and shape what it sells on Amazon.com, with the key detail that this is related just to non-public information
Would love to hear your thoughts.
📰 What you need to know
Amazon's DTC Master Plan, our friend Juozas (Marketplacepulse’s CEO) doesn’t think Buy With Prime is going to work. An interesting read.
Guess we are late on this (this is a bi weekly newsletter), but here it is just in case you live in a cave: Amazon stock plunges to two-year low following first-quarter loss
Ecommcrew’s take on how Amazon’s Stock Drops 10% as Ecommerce Growth Crawls
And now, Marketplacepulse’s take: Amazon’s Growth Was Expected To Slow
I hate Twitter threads, but I wrote one about A9’s future. If you use the translation button, you can read it. After reading Amazon A9’s patents (from 2011 until today) I think that A9’s future is all about image queries, augmented reality and voice-data + voice-queries.
Meet The Startups That Amazon’s New $1 Billion Industrial Innovation Fund Is Backing
Amazon's First-Ever Pet Day Sale Is Finally Here (it was on May 2nd)
Third-party sellers mull over how to manage Amazon’s new 5% surcharge
Seller University videos on tips and best practices for handling seller-fulfilled orders
Why Amazon Is Winning The Consumer Battle Over Walmart
Amazon plans to invest $1 billion in logistics and robotics
IMDb TV announces a rebrand to Amazon Freevee and its first Original movie
Like the newsletter? Help me spread the word so we can reach 300 subs in no time!
👀Recommended reads
Top 1000 retailers cross $1 trillion in web sales in 2021
The State of the Walmart Seller, a Jungle Scout’s report
Walmart and Flipkart Present a Roadmap for Indian Sellers To Export via Cross-border e-Commerce: 650 Sellers attend Seller Summit in New Delhi
The next horizon for grocery e-commerce: Beyond the pandemic bump
Guide to Sports & Outdoors Amazon Niche, by Profit Whales
Alibaba Group Joins Low Carbon Patent Pledge to Accelerate the Adoption of Green Technology
Shopify Merchants Support World’s Largest Workforce, Contributing 5M Jobs and $444B+ in Economic Activity in 2021
The B2B Marketplace Funding Napkin 2022 What does it take to raise capital, in B2B marketplaces, in 2022?
🧐 Recommended tools
Quartile offers cutting-edge A.I. technology to help retailers and brands convert shoppers on every marketing channel. Never miss another sales opportunity with Quartile.
Zonguru has some juicy updates on their toolset!
Their Chrome Extension features now a built-in FBA Profit Calculator which helps sellers calculate the profit potential of any Amazon product.
Sellers can automate complex calculations including Amazon size tiers, freight costs, duties, tariffs, Amazon referral fees, fulfillment costs plus so much more!
What is also great about the Profit Calculator is that it is available for all ZonGuru integrated markets including North America, Europe, India, and Australia.
See you in 15 days!
Best,
Jordi Ordóñez at jordiob.com