The news: Amazon launched Buy with Prime, a new feature that enables third-party merchants to appeal to Amazon Prime members by leveraging the retail giant’s massive logistics infrastructure to fulfill orders on their own websites.
More on this: Buy with Prime melds Amazon’s fulfillment and payments services to provide a streamlined checkout process on non-Amazon websites.
- Buy with Prime is initially only available by invitation for merchants that already use Fulfillment by Amazon, but throughout this year it will expand to retailers that do not sell on Amazon or use FBA.
Prime’s value: Buy with Prime provides other merchants access to the lucrative Amazon Prime customer base, which is a key cog within the retailer’s business.
- We estimate that 88.8 million US households, or 65.9% of total US households, have a Prime membership this year.
- Amazon generated $31.77 billion in subscription revenue last year (the vast majority of that is from Prime memberships), which was a 15% jump year-over-year.
- US Prime members vastly outspend US non-Prime members. Prime members spent $1,968 per year on Amazon on average, which is roughly four times as much as the non-Prime shoppers, per a 2021 Bank of America survey of US shoppers reported on by Quartz.