A Brand New E-commerce World: Amazon Announces ‘Buy With Prime’
This week Amazon announced its latest project, Buy With Prime. This allows digital merchants the chance to offer their own customers Prime benefits including: free next-day shipping, easy returns, and simple payment options.
With the launch of Buy With Prime, independent online retailers can expect to see dramatic increases in conversion rates and revenue. Amazon's average conversion rate on a product sits around 10% - 15% and about 74% with Prime, while most online merchants’ conversion rates sit around 2%.
This makes the DTC business an even more lucrative investment opportunity than ever before. Smaller merchants will soon be able to work with Amazon’s powerful and expansive networks, allowing them to upgrade and streamline the most lackluster parts.
The new program will first be open to FBAs who also operate independently, and later this year it will roll out to other small-to-medium-sized online retailers running on BigCommerce. Nothing has been said if it will expand to other e-commerce platforms.
This is one of the biggest game-changers in the e-commerce space to date; digital merchants and investors now have the opportunity to take part in a grand restructuring and overhaul of the e-commerce space.
“Buy with Prime brings a trusted digital experience which provides fast and free delivery, free returns, and a seamless checkout experience directly to merchants’ online stores,” said Amazon.
This update brings the opportunity to scale up online sellers and transform them into profitable brands with increased conversion rates and sales. This is a huge opportunity for investors and venture capitalists. Now is the time to acquire and fund small e-commerce merchants that were previously deemed to be too risky or not profitable enough.?
Here at Dianthus we buy, build and boost DTC brands using artificial intelligence and innovative tools. Our vision has always been to acquire DTC brands in the e-commerce space to transform them into profitable and reputable brands, but now Amazon’s project presents an incredible opportunity.
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Investors aren’t the only ones who could benefit from this feature. The opportunity for DTC store owners is immense; Amazon offers a clear market advantage and the resources to overhaul and restructure your DTC stores. Not to mention your customers will have the benefit of shopping with Prime.
“Merchants don’t like keeping their wares in an Amazon building, but the customers want Prime. However, the Prime badge is hard to keep,” said a FedEx Executive. ”But if they can keep the badge it’s a wonderful thing. Think about your buying behavior. If you want something fast you go to Amazon.”
Now is the time to work with Amazon to partake in Buy with Prime, and give your e-commerce stores the boost they need.
This update brings the opportunity to scale up your stores and transform them into profitable brands with increased conversion rates and sales. With the help of Amazon's infrastructure and systems, there is no better time to be a direct-to-consumer merchant.
For now, businesses who are considered FBAs can join this program through an invitation only. However, Amazon plans to expand its Buy With Prime network throughout 2022 and eventually accept sellers unaffiliated with Amazon.
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