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Amazon ramps up FedEx, UPS rivalry by expanding Prime to third parties

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Leon Neal | Getty Images News | Getty Images

AmazonIt will allow other online merchants to piggyback its Prime service in order to quickly deliver goods to their customers.

Amazon has launched Buy with Prime on Thursday. It allows third-party merchants to make use of Amazon’s huge shipping and logistics network in order to ship orders to their websites. The service is also available to Amazon Prime members, who number more than 200,000,000.

This badge will allow these web sites to display Prime on their website next to any eligible products for two-day, next-day delivery. Prime members will be able to order using the shipping and payment information they have stored in their Amazon accounts.

Prime will charge sellers a fee to purchase, but the price of Prime can be customized to reflect fulfillment and payment processing fees.

For sellers using Fulfillment By Amazon (FBA), the service can only be accessed by them. Merchants can pay for their inventory to be stored at Amazon warehouses, and also to take advantage of Amazon’s shipping and supply chains. It will eventually be available to all merchants including those who do not sell on Amazon.

Amazon’s goal has been to be the best online courier company. Amazon has invested its profits in physical expansion and growing fulfillment centers across the nation. This allows them to deliver same-day or next-day services in many more countries. To speed up delivery of packages, the company has accumulated a large fleet of own drivers, trucks, and aircrafts.

Watchers in the industry have closely followed Amazon’s growing logistics business, speculated that Amazon is trying to direct compete with large carriers such as Air Canada. UPS, FedExU.S. Postal Service. CNBC reported that Amazon CEO Dave Clark said last year that Amazon was on track to be the country’s biggest delivery service in early 2022.

It already processes some orders from other sites for some products. They offer a program called Multi-Channel FulfillmentAmazon lets sellers ship and store products on Amazon’s site regardless of whether the product is being sold there.

Amazon used to offer a service that allowed its drivers to pick up packages and deliver them directly to customers. was paused at the beginning of the coronavirus pandemicAmazon was overwhelmed by online orders.

Buy with Prime may not be a big service at first, but it can grow to be a very profitable Amazon service, according Bob O’Donnell founder and chief analyst for Technalysis Research.

O’Donnell stated that Amazon was founded as an internal tool. “That being AWS [Amazon Web Services]Of course.

O’Donnell stated that the company had initially built a huge logistic business for themselves, and they are starting to use it as a service.

Amazon is already turning its huge shipping and logistics business into a money machine in some ways. Amazon reports that the third-party sellers services (which includes fulfillment fees and commissions), grew by 11% to $30.3 billion. in the latest quarter.

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