A common concern we hear from brands and sellers already on Amazon goes like this: Will Buy with Prime (BwP) cannibalize my current Amazon sales?
Let’s cut to the chase and answer that question head-on. The answer is an emphatic heck no, and in this article, we explain why. We also offer a few basic strategies to ensure that Buy with Prime is an enhancement, not a cannibal of your existing Amazon marketplace business.
Product Selection is the Critical First Step to Success
Choose your DTC Website’s Top Seller
Perhaps contrary to intuition and instinct, the best choice of product to launch as part of your Buy with Prime strategy is not your top-selling Amazon product. At least as of this writing (November 2022), Amazon has placed limitations on the number of products that can be added to the Buy with Prime program. That’s why we encourage sellers to launch Buy with Prime using the best-selling items from their direct-to-consumer (DTC) website (instead of the top-seller from Amazon). We believe this is the most efficient tactic to avoid negatively impacting your current Amazon business.
Single Items Only
Choose products that are sold individually, or in “eaches” instead of items sold as a bundle in a quantity pack. Buy with Prime currently supports single SKU items only. While customers can of course still choose color and size variations (aka “child ASINs”), Buy with Prime does not support quantity bundles.
Choose Products that Need to Go (and Fast!)
We are also encouraging sellers to select products that are currently seeing significant return rates on the DTC site and/or those items that may be in need of fast shipping due to looming expiration dates around the corner (this could also include items that may soon be replaced or updated). We suggest products with these attributes because it offers sellers the opportunity to leverage Amazon’s massive logistics infrastructure. And obviously, this is less of an option for smaller businesses with modest shipping and warehouse teams.
Another benefit of FBA is the fact that Amazon bears the responsibility of handling costly returns and providing fast two-day shipping as part of the Buy with Prime program fees. When comparing those same costs to third-party logistics (3PL) companies in the United States, Buy with Prime makes even more sense.
Compliance is Critical
This may be obvious, but to ensure a smooth and efficient process, be sure that the Buy with Prime product(s) that you’ve chosen also comply with all relevant Amazon policies for your product category.
Here is a list of helpful links – just in case you have questions about compliance.
Amazon Seller Central – Restricted Products List
Amazon FBA – Product Restrictions
How to Identify Dangerous Goods – Seller Central Identification Guide (HAZMAT)
Understanding the FBA Impact of Items with Expiration Dates
Amazon Pay – Acceptable Use Policy
And for warmer climates – Amazon’s FBA Guide for Meltable FBA Inventory – “Meltable” refers to all heat-sensitive products, including but not limited to chocolate, gummies, and select jelly- and wax-based products.
The bottom line? There’s plenty to consider. Please reach out to Equity Commerce and let us know how we can help. We look forward to hearing from you.