Amazon wants its share of the DtC market

With Buy with Prime, the e-commerce giant aims to attract third-party merchants and DNVBs by enabling them to offer payment and delivery via Amazon Prime.

The Direct to Consumer (DTC) market is looking to Amazon. The company announced on April 21, Buy with Prime, a button placed on the product pages of third-party merchants’ merchant sites that allows them to offer payment and delivery through Amazon’s services. In addition to the traditional add to cart, e-commerce partners are displaying a Buy with Prime button that offers D+1 or D+2 delivery and free returns. Buy with Prime is therefore the combination of the payment service Amazon Pay on the one hand and the logistics and delivery service Fulfillment By Amazon on the other, which the e-commerce giant has already made available to third parties. , without having to sell on the Amazon platform. Free to buyers, the cost of Buy with Prime is borne by the seller.

The DNVBs in the viewfinder

With Buy with Prime, Amazon will announce the color as soon as the service is presented. It is the DtC and DNVB brands that are directly under attack, a segment in which the Seattle-based company cannot really compete, when the strength of the DNVBs lies in an engaging customer experience, strong brand values ​​and creating a community around topics that related to environmental protection and ecology. For Julien Sylvain founder of Tediber and initiator of France DNVB, a collective that wanted to make the DNVB model better known, “Amazon is an anti-DNVB” because these companies wanted to get out of the model set up by the big marketplaces. “At Tediber, Buying with Prime is not something we need, because our product is cumbersome and requires a premium service, says Julien Sylvain, but for other brands it will be more natural to go to this solution, because it is about bundling of forces with the power of Amazon’s fast delivery,” he continues.

A seamless shopping experience

The benefit could therefore be great for the DtC and DNVB brands, as by offering the Buy with Prime button they can ease the shopping experience of their merchant sites, through fast and free delivery, a payment phase, transparency and free returns, all orchestrated by a trusted player, Amazon. Taking advantage of Amazon’s delivery and storage capacity would be a real plus, confirms the France-DNVB co-founder, the customer will simply need to connect to take advantage of a simplified service and payment experience. Amazon has every interest in taking advantage of this to streamline their purchasing process, continues Julien Sylvain. However, the solution needs to be A/B tested and the brands will need to integrate the extra costs to make sure the conversion gain isn’t lost.” he warns. Retailers able to offer Buy with Prime may see a drop in cart abandonment rates given the easier shopping experience on offer and the more than 200 million Amazon Prime users worldwide. “Shopping cart abandonment is an important issue that affects everyone, explains Julien Sylvain, but this service should not be implemented without first testing it.”

The financial challenge

Initially, Buy with Prime will only be available to users of Fulfillment by Amazon (FBA), a service that some retailers pay to store their inventory in Amazon warehouses and to offer their customers D+1 or D+2 delivery. offer. FBA operates in Australia, Canada, France, Germany, Italy, Japan, Mexico, Spain and the UK as Multi-Channel Fulfillment. This could mean an easier implementation of Buy with Prime in these countries. Amazon also explains that some non-FBA e-merchants will receive an invitation in 2022 to implement Buy with Prime on their site. Financial stakes are significant for the market, which, during its December 2021 annual results presentation, indicated that third-party vendor services, including commissions, order management, freight and other services, grew 11% year-over-year to reach $30.3 billion in 2021.

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