How Amazon Buy with Prime increases merchant sales

Category: Operations
How Amazon Buy with Prime increases merchant sales

A year ago, Amazon introduced Buy with Prime, a direct-to-consumer (DTC) offerings, which helps merchants grow their ecommerce businesses on their own websites using the trusted and convenient shopping benefits of Prime that gets members everything they want and need, quickly and reliably.

Since then, we’ve been thrilled with merchants’ feedback, and it’s exciting to see businesses big and small using Buy with Prime to tackle two big challenges—acquiring new shoppers to their brand and converting those shoppers into customers.

– Amazon

Buy with Prime customer acquisition

Acquisition strategies are hard to get right, but they’re one of the first things merchants tackle when trying to grow. That’s where Buy with Prime comes in. Through the promise of fast, free delivery, a seamless checkout experience, and easy returns, Amazon said at Accelerate 2023, that they are excited to report that Buy with Prime is helping merchants acquire new customers.

In fact, initial results show that, on average, three out of every four Buy with Prime orders are from new shoppers. Some merchants, like electrolyte drink company HydraLyte, are well beyond that—with nine out of every 10 Buy with Prime orders coming from customers new to their brand.

Amazon newest feature, Buy with Prime cart, is also starting to see early success with merchants.

In the past, shoppers using Buy with Prime could immediately purchase a single product with each order—similar to the “Buy Now” button on Amazon. While Prime members loved this quick and convenient shopping experience, they also enjoy more options. We’re excited to now offer cart functionality, so shoppers can purchase multiple Buy with Prime products in each transaction.

This new feature also increases the size of sales for businesses—merchants who used it first experienced a 15% increase in Buy with Prime units per order after adding cart to Buy with Prime checkout. Buy with Prime cart also helps merchants optimize fulfillment costs, because Amazon can now fulfill multiple Buy with Prime products in each shipment.

These impressive results are in addition to the 25% increase in shopper conversion, on average, that Buy with Prime has been shown to deliver for businesses—meaning more customers placed an order when Buy with Prime was available versus when it was not.

Buy with Prime Assist

Buy with Prime is also helping merchants with their post-purchase experience. Recently, Amazon introduced Buy with Prime Assist, which gives merchants the option to offer 24/7 post-order customer service support through Amazon at no additional cost. By using a real-time chat feature, shoppers who use Buy with Prime can now ask questions related to shipping and delivery information or returning a product, giving merchants more time to focus on other ways to grow their businesses.

Shopify Integration

In addition to acquiring new customers, merchants have shared the operational burden they face when running a business. With Buy with Prime, our goal is to make the day to day easier for them.

Recently, we announced our partnership with one of the largest ecommerce providers, Shopify. Not only have we made it easier to install Buy with Prime on Shopify stores, but we’re helping merchants save time and resources while running their business.

Our native integration with Shopify uses a merchant’s existing Shopify settings, customizations, and supported third-party app integrations. It also makes it easier for Shopify merchants to manage their businesses, with their inventory, pricing, and promotions automatically synced all in one place—their Shopify admin.

Dual Inventory use

Finally, One of the more behind-the-scenes benefits of Buy with Prime is dual inventory use, because Buy with Prime orders are fulfilled using Amazon Multi-Channel Fulfillment (MCF). Whether an order comes in from a merchant’s own website or Amazon, the order is fulfilled using the same inventory pool within Amazon’s logistics network. This helps merchants reduce out-of-stock rates by an average of 13% and speeds up delivery times by placing inventory closer to shoppers.

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