Amazon Prime Delivery Will Be Available For Other Retailers From Their Sites

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Amazon Inc (NASDAQ:AMZN) has made a surprising move after announcing Thursday it will open up Prime delivery services to online retailers from their own sites. Prime members can place orders from these companies and select the “Buy with Prime” option and get free and fast shipping.

“Buy with Prime”

As reported by CNN Business, the feature will be available by invitation to specific Amazon online retailers and is seen as a move to compete with UPS —United Parcel Service, Inc. (NYSE:UPS)— and FedEx Corporation (NYSE:FDX).

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Retailers will have access to Amazon’s gargantuan shipping and logistics system, and will also be available to lure customers among the 200-plus million Prime members boasted by the e-commerce juggernaut.

According to CNBC, these platforms can now put the Prime badge on their websites next to items that are eligible for free two-day or next-day delivery. Customers will be able to place orders using their Prime account information.

Peter Larsen, Amazon's vice president of Buy with Prime, underlined how Amazon is willing to offer businesses another string to their bow.

“Allowing merchants to offer Prime shopping benefits on their own direct-to-consumer online stores is an exciting next step in our mission to help merchants of all sizes grow their business —whether on Amazon or beyond,” he said in a statement Thursday.

Boosting The Business

Larsen also added, “With shoppers purchasing directly from merchants' online stores, Buy with Prime will allow merchants to build customer relationships and brand loyalty while offering conversion-driving benefits like fast, free shipping.”

Dave Clark, Amazon’s CEO of worldwide consumer, was quoted as saying last year that the company is setting its sights on becoming the largest delivery service in the U.S. by early 2022.

Bob O’Donnell, founder and chief analyst at Technalysis Research, says Amazon has built a massive logistics industry originally for its own benefit, “and now what they’re starting to do is leverage that as its own service.”

In the latest quarter, the company reported an 11% increase year-on-year to $30.3 in its third-party seller services, comprising commissions, shipping, and fulfillment fees.