Business & Finance
Amazon asks third-party sellers to bid for sub-Same Day shipping access
An optional program allows Fulfillment by Amazon sellers to set per-unit bids for delivery in as little as two hours.
The short version
- Amazon invited select third-party sellers using Fulfillment by Amazon to submit bids to make their products eligible for sub-Same Day delivery.
- Sub-Same Day shipping offers delivery within two hours in 2,300 metropolitan areas, with Amazon citing a 12% average sales increase for participating items.
- Participation is optional, and sellers only pay their designated per-unit bid when an item ships through the expedited program.
- E-commerce advisors noted that the bidding system adds operational complexity and could raise overall costs for sellers.
Key facts
- Amazon sent an email to select third-party sellers asking them to submit per-unit bids for sub-Same Day delivery eligibility.[Business Insider]
- Sub-Same Day deliveries arrive within two hours of ordering and are available in 2,300 metropolitan areas.[Business Insider]
- Amazon stated in its email that items sold through sub-Same Day delivery see 12% higher average sales compared to standard FBA items.[Business Insider]
- The bidding program is optional, and sellers are charged only when an item actually ships through the sub-Same Day service.[Business Insider]
- Amazon evaluates bids based on metrics such as customer feedback and plans to continue offering a variety of independent seller products in its Same Day network at no extra cost.[Business Insider]
What remains uncertain
- The long-term impact of the bidding system on overall seller margins and fees remains unknown as participation begins.[Business Insider]
Sources
- Amazon tells sellers to pay up to get your packages to you fasterBusiness Insider metered