Buy with Prime and Amazon Multi-Channel Fulfillment Expand with New Capabilities and More Brands

Rhea-AI Summary

Amazon's Buy with Prime and Multi-Channel Fulfillment (MCF) services are showing significant growth and new capabilities. Buy with Prime orders are up 45% year-over-year, driving a 16% increase in revenue per shopper for merchants. The service now integrates with PayPal for checkout and offers new advertising solutions through Amazon DSP, Google Shopping Ads, and TikTok Ads.

Amazon MCF has expanded to serve over 200,000 U.S. merchants, with a 70% year-over-year increase in total orders fulfilled. Enhancements include faster standard delivery (3 days instead of 5) at no extra cost, and the introduction of MCF Fast Badges for merchant websites to display real-time delivery estimates.

Positive

• Buy with Prime orders increased by 45% year-over-year
• Merchants using Buy with Prime saw an average 16% increase in revenue per shopper
• Amazon MCF now serves over 200,000 U.S. merchants, with a 70% year-over-year increase in total orders fulfilled
• Integration with PayPal for Buy with Prime checkout
• New advertising solutions with Amazon DSP, Google Shopping Ads, and TikTok Ads
• Amazon MCF Standard Delivery option reduced from 5 to 3 business days at no extra cost

Negative

• None.

E-commerce Analyst

Amazon's Buy with Prime and Multi-Channel Fulfillment services are showing significant growth, indicating a strong shift towards integrated e-commerce solutions. The 45% year-over-year increase in Buy with Prime orders and 16% average revenue boost per shopper are impressive metrics, showcasing the program's effectiveness. The expansion to include PayPal as a payment option is a strategic move to capture a broader customer base.

The 70% year-over-year increase in total orders fulfilled by Amazon MCF, now serving over 200,000 U.S. merchants, demonstrates the scalability and demand for Amazon's fulfillment infrastructure. The reduction in standard delivery time from 5 to 3 days at no extra cost is a game-changer, potentially pressuring competitors to match this speed or lose market share.

These enhancements position Amazon as a dominant force in e-commerce infrastructure, potentially disrupting traditional retail and logistics models while boosting its own ecosystem.

Digital Marketing Expert

The integration of Buy with Prime with major advertising platforms like Amazon DSP, Google Shopping Ads and TikTok Ads is a significant development for merchants. This multi-channel approach allows for more targeted and effective customer acquisition strategies. The ability to display Prime delivery estimates in ads could be a powerful conversion tool, leveraging the trust associated with Amazon's Prime brand.

The reported 80% success rate in meeting or exceeding ROAS goals with Amazon DSP for Buy with Prime is particularly noteworthy. This high success rate could drive rapid adoption among merchants, potentially shifting ad spend away from traditional platforms. The integration with TikTok Ads also taps into the growing social commerce trend, which could be especially effective in reaching younger demographics.

These advertising solutions, combined with the expanded payment options and improved fulfillment capabilities, create a compelling ecosystem for merchants to drive traffic and increase conversions across multiple channels.

Supply Chain Analyst

Amazon's expansion of its fulfillment services beyond its own marketplace is a strategic move that leverages its vast logistics network. The ability for merchants to use a single, shared inventory pool across multiple sales channels is particularly innovative, leading to an average 13% reduction in out-of-stock rates and a 24% improvement in inventory turnover. These efficiencies can significantly impact a merchant's bottom line and customer satisfaction.

The speed increase in Amazon MCF's standard delivery option from 5 to 3 business days at no additional cost is a bold move. This enhancement, along with 7-day delivery, puts pressure on competitors and could reshape customer expectations for e-commerce fulfillment. The introduction of MCF fast badges and delivery estimates in ads further integrates Amazon's logistics capabilities with merchants' marketing efforts, potentially driving higher conversion rates and customer loyalty.

This level of integration and efficiency in multi-channel fulfillment could accelerate the trend of brands moving away from managing their own logistics, instead relying on Amazon's infrastructure.

So far this year, Buy with Prime orders through merchants’ websites are up more than 45% year-over-year; the service is also driving an average 16% increase in revenue per shopper for merchants offering Buy with Prime

Buy with Prime shoppers can now use PayPal to check out on participating merchants’ websites

New advertising solutions with Amazon Demand-Side Platform, Google Shopping Ads, and TikTok Ads help merchants drive traffic to their Buy with Prime enabled items

Amazon Multi-Channel Fulfillment is also growing quickly, now serving over 200,000 U.S. merchants, with a 70% year-over-year increase in total orders fulfilled by the service so far this year

SEATTLE--(BUSINESS WIRE)-- Today at Amazon’s Accelerate seller conference, Amazon (NASDAQ: AMZN) direct-to-customer (DTC) offerings, Buy with Prime and Amazon Multi-Channel Fulfillment (Amazon MCF), announced a number of enhancements to their merchant and shopper experiences. These new capabilities are part of Amazon’s focus on innovating to help businesses of all sizes increase their sales on their own online stores and other channels beyond Amazon.com.

Buy with Prime and PayPal (Photo: Business Wire)

Transforming how Brands Grow Across their Sales Channels

To help merchants build and scale their businesses across their own websites, other marketplace service providers, and social media channels, Amazon offers a suite of externalized ecommerce services that leverage the power of Amazon’s fulfillment network and the Prime shopping experience. Amazon MCF is the foundational supply chain service operating in more than 10 countries. This service gives merchants the option to have Amazon pick, pack, and ship their orders for channels beyond Amazon.com. Buy with Prime, currently available in the U.S., uses the trust and recognition of the Prime brand to help increase traffic and sales on merchant DTC websites, while also leveraging Amazon MCF to fulfill and deliver orders. For Prime members, Buy with Prime is a member benefit that unlocks even greater selection, value, and convenience beyond Amazon.com. By using Amazon MCF and Fulfillment by Amazon (FBA), merchants can quickly scale up and scale down a single, shared pool of inventory based on customer demand across their sales channels. This has helped merchants cut out-of-stock rates by an average of 13% and improve inventory turnover by an average of 24%. Amazon’s continued innovation in Amazon MCF and Buy with Prime have made them invaluable tools for merchants looking to grow and scale their businesses across all their sales channels.

“Buy with Prime and Amazon Multi-Channel Fulfillment continue to help sellers attract new shoppers with the convenient, fast, and predictable experience they expect from Amazon,” said Peter Larsen, vice president of Buy with Prime and Amazon Multi-Channel Fulfillment. “Both services have seen significant growth over the last year, and we’re delighted to add to the momentum and partner with PayPal, Google, TikTok Ads, and Shopify to give brands even more options to grow their businesses.”

Merchant Growth with Buy with Prime

Buy with Prime launched in 2022 with a dozen brands and the goal of helping DTC merchants overcome challenges with acquiring new shoppers and driving conversion by offering quick and reliable delivery, and increasing their long-term relationships with customers. By leveraging the power of Amazon’s fulfillment network and the trust and recognition of the Prime brand, Buy with Prime continues to focus on helping businesses grow by making it easy for them to offer fast, free delivery; easy returns; 24/7 shopper support; and a convenient checkout experience.

Buy with Prime momentum includes:

• Saw an increase so far this year of more than 45% in Buy with Prime orders year-over-year through merchant websites, with merchants generating an average 16% increase in revenue per shopper from offering Buy with Prime.
• Helped merchants bring new traffic to their site so far this year, with over 50% more Prime members shopping Buy with Prime year-over-year.
• Leveraged one of Amazon’s biggest shopping moments of the year to garner a 300% increase in the number of orders for Buy with Prime merchants during the Prime Day 2024 event.
• Increased the number of merchants offering Buy with Prime so far this year by over 25% year-over-year with hundreds of new brands to shop including IZOD, Elizabeth Arden, Dollar Shave Club, Shokz, Brumate, Buxom Cosmetics, Thunder Works, Toroe, Backbone, babysense, Tini Lux, Feliway, Iron Flask, Nectarlife, Waterdrop Filter, and more.

“No matter the history or longevity of your store, if someone sees Buy with Prime and the option to check out using their Amazon account, it gives them an elevated sense of trust,” said David Parrish, founder and chief executive officer for SnS Grills, a Buy with Prime merchant. “Our experience with Buy with Prime is simple: it works, and it works well. We think it’s a powerful solution for merchants, and those who adopt it will see the rewards—quickly.”

Driving Traffic Through New Advertising Solutions

To help merchants lower their cost to acquire new customers and drive traffic to their Buy with Prime enabled items, Buy with Prime is introducing two unique advertising solutions:

• Introducing Amazon DSP for Buy with Prime – Buy with Prime merchants can now launch Amazon Demand-Side Platform (DSP) campaigns that leverage Amazon product-level shopping signals to drive traffic to their ecommerce websites. By combining insights from their Amazon.com listings—like product views and purchases—with shopping signals from their own website, merchants can remarket to these shoppers with ads across thousands of third-party apps and websites. More than 80% of merchants who’ve used Amazon DSP for Buy with Prime have reported meeting or exceeding their return on ad spend (ROAS) goals.
• Integrating Delivery Estimates in TikTok Ads – Buy with Prime merchants will be able to display the Prime brand and real-time delivery estimates in their TikTok Ads next month. After clicking the Shop with Prime button within the merchant’s ad, shoppers will be directed to the merchant’s website to place their order. Featuring the familiar Prime delivery estimate will help merchants stand out, drive traffic from social channels, and increase conversion.

“Within two weeks of using Amazon DSP for Buy with Prime to remarket to engaged shoppers across the web, it’s already our second-highest performing ad channel giving us an incredibly strong return on advertising spend,” said Tommy Kowalski, vice president of digital commerce for HEYDUDE, a Buy with Prime merchant.

Delighting Buy with Prime Shoppers with New Ways to Pay and Check out

Continuing the Buy with Prime journey to extend Prime shopping benefits beyond Amazon.com, the company is rolling out enhancements to the Buy with Prime shopping experience, including:

• Expanded Payment Options with PayPal – For participating brands integrating using the Buy with Prime API, PayPal is now available at checkout after shoppers log in to their Amazon account. And starting next year, Prime members will be able to perform a one-time link of their Amazon account to their PayPal account so that Prime free, fast shipping benefits are available automatically whenever they use PayPal while shopping with Buy with Prime on participating merchants’ websites.
• Purchase items with Prime and without Prime in one Checkout via Shopify Stores – Using the existing Shopify cart and checkout, shoppers can now purchase items with Prime and without Prime, together in one order. This capability extends the functionality of the Buy with Prime app for Shopify that launched in the Shopify App Store last year to help merchants increase their units per order and average order value.

Driving Sales Growth with Amazon Multi-Channel Fulfillment

With Amazon Multi-Channel Fulfillment, merchants can leverage Amazon’s fulfillment network to pick, pack, ship, and deliver their orders from channels beyond Amazon.com, including their own website, other ecommerce marketplaces, and social media channels. This solution works with over 100 prebuilt integrations or merchants can build a custom integration tailored to their needs.

Amazon MCF has grown to serve over 200,000 U.S. merchants and seen a 70% year-over-year increase in total orders fulfilled by the service so far this year. To further improve the delivery experience and drive traffic to merchants’ websites, Amazon MCF is introducing:

• Speeding Up the Amazon MCF Standard Delivery Option by 40% – As Amazon continues to invest in speed throughout its fulfillment network, Amazon MCF is now reducing its Standard Delivery option from 5 business days to 3 business days at no extra cost to merchants. Customers can now enjoy this faster delivery speed along with deliveries made 7 days a week.
• MCF Fast Badges for Merchant Websites – Like with Buy with Prime, merchants can now show a dynamic, real-time delivery estimate on their website. MCF fast badges give shoppers visibility into when they'll receive the product early in their shopping journey, and helps merchants increase shopper conversion. For example, sports apparel company NXTRND saw an 8.9% increase in revenue using an Amazon MCF delivery estimate.
• Delivery Estimates in Google Shopping and TikTok Ads – This month, merchants will also be able to show an estimated delivery date in their Google Shopping ads and search results, and in their TikTok ads. Displaying a fast, reliable delivery speed on ads can help merchants drive more shoppers to their site while boosting their ROAS.

“With Amazon Multi-Channel Fulfillment, our ability to scale was essentially unlimited. We didn’t have to buy warehouses, trucks, planes, or other logistics resources like packaging or labels—we could rely on Amazon to provide that,” said Craig Barnell, co-founder and chief operating officer, Fishers Finery, an Amazon MCF merchant. “Amazon has helped us to exceed customers’ expectations. In fact, we regularly get emails from customers saying, ‘I can’t believe how fast and on-time our package got to us!’”

Merchants interested in learning more can visit the Buy with Prime website or Amazon MCF website.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240918507437/en/

Amazon.com, Inc.

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FAQ

What is the year-over-year growth for Buy with Prime orders in 2024 for AMZN?

Buy with Prime orders through merchants' websites are up more than 45% year-over-year in 2024 for Amazon (AMZN).

How much has Amazon MCF's order fulfillment increased year-over-year in 2024?

Amazon Multi-Channel Fulfillment (MCF) has seen a 70% year-over-year increase in total orders fulfilled so far in 2024.

What new payment option is available for Buy with Prime shoppers on AMZN in 2024?

In 2024, Buy with Prime shoppers can now use PayPal to check out on participating merchants' websites for Amazon (AMZN) products.

How has Amazon (AMZN) improved its MCF Standard Delivery option in 2024?

Amazon has reduced its MCF Standard Delivery option from 5 business days to 3 business days at no extra cost to merchants in 2024.