Amazon Asks Sellers In US To Pay Up For Faster Delivery As It Expands Sub-Same Day Service

(MENAFN- Live Mint) Amazon is turning to the sellers that use its fulfilment network as it looks to expand one of its quickest delivery options, with some merchants being asked to pay more to get their products into the sub-Same Day programme.

Amazon asks US sellers to pay up for faster delivery

The e-commerce giant has asked selected sellers using Fulfillment by Amazon, commonly known as FBA, to submit bids for their products to become eligible for sub-Same Day delivery, according to an email sent to sellers earlier this month.

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The programme promises a considerably faster experience for shoppers. Amazon says eligible orders can arrive in as little as two hours after they are placed, and the service is currently available across 2,300 metropolitan areas.

For sellers, the appeal is obvious. Faster delivery can make a product more attractive to customers browsing Amazon, particularly when several merchants are offering similar items. Amazon itself highlighted the potential commercial benefit in its message to sellers, saying products offered through sub-Same Day delivery "have experienced 12% higher sales on average" than those delivered through regular FBA service.

The move also shows how Amazon is continuing to experiment with the economics of its vast fulfilment operation. Rather than simply expanding the fastest delivery option across its marketplace, the company is asking some sellers to compete for access to the service through bids.

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That puts the decision partly in the hands of merchants. Sellers will have to weigh the potential boost in sales against whatever additional cost is involved in securing faster delivery for their products.

Fulfillment by Amazon allows third-party merchants to store their inventory in Amazon's warehouses, while the company handles tasks such as picking, packing and shipping orders. The model has become a central part of Amazon's marketplace, where independent sellers account for a substantial share of the products available to shoppers.

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Sub-Same Day takes that fulfilment model a step further by prioritising speed. The service is designed for customers who want an order almost immediately rather than waiting for the standard delivery window.

Amazon's latest push therefore gives sellers another incentive to pay for visibility through faster fulfilment, while allowing the company to broaden the selection of products available for rapid delivery. The company has not publicly detailed how much individual sellers will have to bid to participate, based on the information provided.

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