Even in a difficult market, Amazon sellers are doing well collectively on the number-one online marketplace, with 89% of them reporting profitability at the start of 2023, while 37% say their net income is up from a year ago, according to an annual report from Jungle Scout. More of them are also diversifying across other sites.
Buy With Prime, the program that lets retailers not named Amazon offer shoppers the Prime experience and promise, is rolling out for all U.S. merchants as of Jan. 31, the company announced, ten months after a beta launch by invitation only for select users of Fulfillment By Amazon.
Amazon aggregators have seen massive investment and deal flow since 2020, but the activity has been slowing as the valuations of top sellers has increased, according to a report on M&A activity in the sector from investment banking firm Capstone Partners. There were just 30 acquisitions of major FBA brands in Q1 vs. 159 in all of 2021.
Amazon has recently adjusted its “buy box” product search algorithm to favor items that can be fulfilled and delivered faster by sellers themselves over Prime eligible products offered through Fulfilled By Amazon, which are taking weeks vs. days, experts say. The change was noticed last week by sellers using Merchant Fulfilled Prime.
Amazon is pushing Prime Day from mid-July to sometime in August or later, Reuters is reporting, due to the ongoing coronavirus outbreak, further impacting already distressed third-party sellers as restrictions on processing nonessential orders through Fulfillment by Amazon are just now being eased.
Shooting across Amazon’s bow with its FBA program, Shopify is going all-in on ecommerce fulfillment, tapping 3PL partners to provide two-day delivery across the U.S. for merchants on its ecommerce platform, many with physical stores, while letting them keep customer data and a branded packaging experience.
Amazon is offering third-party sellers on its marketplace discounts of up to 75% to use its warehouse space in an effort to make more inventory within reach of one-day shipping for its new Prime promise. This will allow Amazon to place more items closer to customers to meet the new Prime guarantee.
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