Amazon Logistics a Prime mover for FBM sellers in 2016?
From early 2016, it will be mandatory for FBM sellers to use Amazon Logistics to sell to Prime customers, according to Tamebay. Selected self-fulfilled retailers who currently warehouse their own goods will only qualify for Prime shipping if they use Amazon Logistics.
Amazon Logistics is a courier service that is part of their wider fulfilment network whereby Amazon would collect directly from retailers instead of just delivering from its own fulfilment centres.
A prime opportunity for sellers?
The change is a logical progression in Amazon’s focus on making its Prime membership program more attractive. For FBM sellers, it’s an opportunity to sell more by gaining access to Prime. The catch is that sellers have no choice other than to trust Amazon with logistics.
For some sellers, this won’t be an issue, as it could bring fewer headaches and competitive rates that will benefit their business. For larger retailers, it could mean a significant investment in changing their own warehousing and inventory management systems to accommodate current procedures & systems required to integrate with Amazon Logistics.
Trouble for traditional carriers?
The changes will be most keenly felt by providers of logistics services to online sellers, such as couriers, shipping companies and the like. Prior to Amazon Logistics, FBM Prime sellers could choose any courier to fulfil their deliveries. It seems Amazon are willing to undercut the market to have complete control of their end-to-end logistics.
For now, these changes will only impact larger, self fulfilled retailers who have been invited to join Prime. Is this an opportunity for FBM Sellers to sell more?? Or is it a risk handing over logistics to Amazon??
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