- Amazon.com Inc (NASDAQ:AMZN) launched Buy with Prime, allowing third-party merchants to use Amazon’s vast shipping and logistics network to fulfill orders on their sites while appealing to Amazon’s Prime customers.
- Experts see the move firing up rivalry with United Parcel Service Inc (NYSE:UPS), FedEx Corp (NYSE:FDX), and the U.S. Postal Service as being the fastest in the online delivery race, CNBC reports
- The websites will put the Prime badge next to eligible items for free two-day or next-day delivery.
- Prime members will use the payment and shipping information stored on their Amazon accounts to place an order.
- Buy with Prime pricing will depend on payment processing, fulfillment, storage, and other fees.
- Initially, the service will only be available by invitation to sellers who use Fulfillment by Amazon.
- With that service, merchants pay to have their inventory stored in Amazon’s warehouses and use the company’s supply chain and shipping operations.
- Eventually, Amazon will extend the service to other merchants, including those not selling on Amazon.
- Amazon reported that third-party seller services, including commissions, fulfillment and shipping fees, and other services, grew 11% year-over-year to $30.3 billion in the latest quarter.
- Price Action: AMZN shares traded higher by 1.07% at $3,113 premarket on the last check Thursday.
- photo via Wikimedia Commons
