Amazon expands its Buy with Prime "-as-a-Service" program

Launched in April 2022, "Buy with Prime" was previously reserved for certain merchants selected by the American giant. As of 31 January, all US-based businesses that wish to do so will be able to join the programme. As with many other features, Amazon is extending its grip on the e-commerce market through Payment-as-a-Service.

FACTS

• The programme allows participating merchants to use Amazon Prime for products offered for sale on their site. The promise is that they will be able to take advantage of the US giant's vast logistics network, but also to attract the 200 million or so Prime subscribers.

• Websites will be able to display the Prime badge next to items eligible for free same-day or next-day delivery.

• Prime members will also be able to use the payment and delivery information stored in their Amazon account to place an order.

• The e-tailer also announced a new add-on to the programme that allows merchants to display reviews and ratings from their Amazon listings on their own site.

CHALLENGES

• Finding new growth drivers: Logistics and warehousing have become Amazon's distribution system assets, which the e-commerce giant now wants to commercialise in the same way that the cloud had provided it with growth drivers. The company makes money by charging sellers for shipping and storing their goods in its warehouses. Revenues from third-party vendor services jumped 18% from the previous year to $28.7 billion.

• Expanding its grip on e-commerce: US media outlet The Verge reports that the company will collect data from all users clicking on the Buy with Prime button, as well as from merchants, including their product descriptions, inventory and prices. This last point raises questions, as the company has been accused on several occasions of illegally exploiting the data of its third-party sellers to profit from it. In any case, it is a way to widely distribute its one-click payment solution and to capture transactions on its network.

MARKET PERSPECTIVE

• The wider rollout of Buy with Prime comes as its larger rival, Walmart, has launched an annual subscription to compete directly with Amazon Prime.

• With its retail business shrinking, Amazon is looking for new opportunities to expand.

• Amazon is also rolling out its voice command service as standard in 200 US car manufacturers' vehicles and has just partnered with the EVgo service to help electric vehicle drivers find EVgo charging stations and pay for their charge via Amazon's Alexa virtual assistant.