How Amazon Logistics Could Impact Seller Fulfilled Prime

Supply Chain
Written By Rick Watson

Amazon has given Seller-Fulfilled Prime (read: non-Fulfilled by Amazon) sellers another reprieve on Amazon's strict delivery and fulfillment standards.

It's COVID, they say.

Ultimately, this is only a temporary reprieve. Actually I think it could help Amazon line up some other timing. Previously, sellers were not responsible for buyer-related fulfillment concerns if they used FBA. At some point this year, Amazon will almost assuredly rollout Amazon Logistics (AMZL) solution.

This will immediately create a captive market for everyone wanting to find a stable Seller-Fulfilled Prime solution (since hardly anyone is doing that good a job right now).

Boom. COVID ramps down in second half of the year. Seller-Fulfilled Prime standards go back up. Simultaneously, using AMZL will offer relief from these standards.

I'll leave it to others to determine if it's ethical or not, but ultimately none of this would work if buyers didn't still love Amazon. If that were the case, demand would be shrinking at Amazon and no one would care about this.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
Previous

The Relationship Between eCommerce, Technology, and Politics
Next

The Importance of Trust In The Sales Process