1. finally: "Buy with Prime" for D2C officially launches in the USA

"Buy with Prime" is a beta existing Amazon service through which merchants have the opportunity to sell their products through their own online store and take advantage of beneficial services from Amazon such as fulfillment services (FBA).

In toto, "Buy with Prime" is especially as a simplification for D2C online stores a chance to quickly, easily and efficiently realize the backbone of an online store as well as that the corresponding products are offered with the Prime logo as well as the Prime promise and thus a significant progression in the conversion arises.

The service described above has long been in place since April 2022, with a new addition that will be rolled out to all eligible dealers in the U.S. by Jan. 31, 2023, according to a recent company announcement.

In our opinion, Buy with Prime can add value to any seller. According to Amazon, it has been shown in recent months that merchants who have taken advantage of the service have been able to increase their buyer conversion by 25 %; what progression is actually realistic depends very much on the individual case. For the time being, the option is only available in the U.S., but there is speculation as to whether or when the service will also come to Europe.

2. renewed increase in storage costs for old stock

A few weeks ago, we had already reported that Amazon will remove the old stock or the so-called dead stock from its own warehouse.As of April 15, 2023, the storage costs for FBA units will be increased as shown in the table below. It is important to note that the fee adjustment initially affects merchants who sell on the American marketplace or store their products in the corresponding Amazon logistics centers.

In economically challenging times, retailers are faced with further cost adjustments and their own margins continue to shrink. As a result, retailers need to make sure that FBA is primarily used for products that have a good sell-through rate. The goal that Amazon pursues with this is to have only high-turnover products in stock. Furthermore, it is intended to clean up the warehouse for special days à la Prime Day and the like.

3. Amazon tests cheaper Prime membership

Amazon is testing "Prime Lite" in India. This is a less expensive version of Amazon Prime. In the Lite version, customers can make free deliveries as usual without a minimum order value and gain earlier access to lightning deals, but there are deductions in the logistics: For example, only a two-day delivery of products is promised instead of a one-day delivery. 

With the new Prime subscription, customers will continue to have access to movies and series via Prime Video, but not in high-definition quality (HD) and with corresponding ads. The Prime Music offering, Prime Gaming, and free e-books are also not included in the subscription.

The relevance of the "Prime Lite" feature is not too high for the time being because it is a beta version, also because it is tested in the Indian marketplace. The continued strong focus on India is worth knowing with regard to Amazon's expansion efforts.