Amazon Expands Sub-Same Day Delivery Service
Amazon is expanding its sub-Same Day delivery service by asking some third-party sellers to bid for access. This initiative allows sellers using Fulfillment by Amazon (FBA) to compete for eligibility in a program that promises delivery in as little as two hours. The service is available across 2,300 metropolitan areas.
An email sent to sellers said items offered through sub-Same Day delivery have seen an average sales increase of 12%. This is compared to items delivered through standard FBA services. Sellers will pay based on the per-unit price they bid. Participation in this bidding system is optional. Amazon emphasized that sellers will only incur charges for units that actually ship through this expedited service.
The new bidding approach lets sellers choose which products they want to offer at faster delivery speeds. This is based on their business insights. A spokesperson noted that Amazon will evaluate bids using factors such as customer feedback. The company also plans to keep providing a variety of products from independent sellers in its Same Day network at no extra cost.
Amazon has been improving its delivery options over the past year. This includes offering 30-minute delivery in select cities for groceries and essential items. This move shows Amazon's ongoing changes to its fulfillment operations and pricing strategies.
This shift could lead to higher costs for sellers. It may also affect the pricing of products in the e-commerce space. Increased shipping fees could influence consumer prices, especially in competitive categories like groceries and electronics.
Watch for further developments on seller participation rates and customer response to the new bidding system. Amazon continues to refine its delivery services.
Based on reporting by: livemint.com, businessinsider.com