Amazon.com Inc. launched Buy with Prime, allowing third-party merchants to use Amazon’s vast shipping and logistics network to fulfill orders on their sites while appealing to Amazon’s Prime customers.
Experts see the move firing up rivalry with United Parcel Service Inc., FedEx Corp., and the U.S. Postal Service as being the fastest in the online delivery race, CNBC reports.
The websites will put the Prime badge next to eligible items for free two-day or next-day delivery.
Prime members will use the payment and shipping information stored on their Amazon accounts to place an order.
Buy with Prime pricing will depend on payment processing, fulfillment, storage, and other fees.
Initially, the service will only be available by invitation to sellers who use Fulfillment by Amazon.
With that service, merchants pay to have their inventory stored in Amazon’s warehouses and use the company’s supply chain and shipping operations.
Eventually, Amazon will extend the service to other merchants, including those not selling on Amazon.
Amazon reported that third-party seller services, including commissions, fulfillment and shipping fees, and other services, grew 11 percent year-over-year to $30.3 billion in the latest quarter.
