Amazon moving its FBA Program Upstream

When one thinks of the Fulfilled by Amazon (FBA) service, the first mental image is of small vendors taking advantage of Amazon’s pick, pack and ship processes for those selling on Amazon’s Marketplace web sites, as Amazon operates like a 3PL.

Supply Chain Digest Says... Initially, the Buy with Prime feature was only available for third-party retailers using the Fulfillment by Amazon logistics service. Since then, the etailer has made Buy with Prime widely available to US-based Amazon retailers What do you say? Click here to send us your comments   Click here to see reader feedback

But as SCDigest has reported many times before, Amazon has bigger plans to expand its reach and move more upscale.

This week came news that athletic shoe and apparel company Adidas will integrate Amazon’s Buy with Prime feature on its website and other ecommerce channels.

Buy with Prime was launched in 2022, and enables vendors to offer the benefits of the enormously popular Prime program, including fast free delivery, easy returns and 24/7 customer support — to customers on their own direct-to-consumer (DTC) platforms.

The Retail Touchpoints web site reported on the news that after starting off small, the Buy with Prime roster is now beginning to fill out with a number of name brands, including Laura Mercier, Steve Madden, Belkin, BareMinerals, Elizabeth Arden, Izod and MrBeast.

Buy with Prime program features will be available for select items on Adidas.com and the Adidas app beginning this spring, Adidas said in its announcement.

It will work like this: during checkout, shoppers will see an option to log in to their Amazon account and verify their Prime membership. Once confirmed, they’ll finish checkout using one of Adidas’ payment options. After the purchase is made, Amazon - not Adidas - fulfills all Prime-eligible items in the order.

After checkout, Prime members will also be able to manage and track their Buy with Prime orders from their Amazon account on Amazon.com or their Adidas order confirmation email.

“Expanding Buy with Prime to Adidas.com and the Adidas app is like lacing up a fresh pair of sneakers - it just feels right,” said Peter Larsen, VP of Buy with Prime and Amazon Multi-Channel Fulfillment in a statement. “We’re excited to give Prime members the added convenience of using the shopping benefits they already know and love on Adidas.com and the Adidas app.”

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Initially, the Buy with Prime feature was only available for third-party retailers using the Fulfillment by Amazon logistics service.

Since then, the etailer has made Buy with Prime widely available to US-based Amazon retailers, integrated it with the BigCommerce and Shopify e-commerce platforms, integrated it with TikTok ads, and added cart functionality for customers and 24/7 post-order customer service support for sellers.

Various media outlets reporting on the news have referenced that with the service link, Adidas customers will be able to take advantage of free shipping if they are also Prime members. But the shipping can’t be free – Adidas is clearly paying service fees to Amazon for providing the fulfillment and shipping services.

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