Back in 2015, Amazon introduced a new program that allowed third-party sellers to handle their own fulfillment while keeping their products available to Prime members. To stay in the program, Amazon wants SFP merchants to be as efficient or more efficient as its own network, including keeping up with the two-day delivery schedule that put Amazon on the map.
The program, called Seller-Fulfilled Prime (SFP), was discontinued in 2020 because Amazon “unfortunately realized that SFP was not providing the same high-quality experience that customers expect from Prime.”
However, the Federal Trade Commission (FTC) disagrees.
In its latest antitrust lawsuit, the FTC alleged that Amazon saw the program as a threat to its monopoly. It said that sellers using SFP consistently met their delivery estimates (more than 95% in 2018) and even surpassed FBA orders.
According to the complaint, Amazon allegedly began to turn against the program later when it learned that other fulfillment providers were encouraging sellers to fulfill orders through them instead. This new development can potentially attract sellers away from FBA.
SFP was recently reopened in October 2023, shortly after the FTC filed the case. Amazon also reversed its decision to impose an additional 2 percent fee on sellers using SFP. Some view these moves as a way to prove that it’s not engaged in anti-competitive practices.
For its part, Amazon says that the FTC’s claims are misleading. According to spokesperson Tim Doyle, SFP merchants were promising two-day deliveries less than 16 percent of the time in 2018, which is why they had to discontinue the program.
The Last Time You’ll See This
We’re launching EcomCrew Premium on the 22nd. To keep the tradition alive, we’re giving additional discounts on top of our Black Friday offer to those who will sign up for the waitlist before we officially open.
This is the last time we’re sending out the waitlist link, so don’t forget to sign up to receive your exclusive discount.
More Buy with Prime Perks
Buy with Prime allows Amazon to participate in transactions outside its own platform. The program was expanded earlier this year, rolling out publicly in the United States from its invitation-only status.
Now, just in time for the holidays, Amazon is adding more benefits to Buy with Prime, allowing Prime members to
- Track orders through their Amazon account
- Access 24/7 customer service through a live chat feature, and
- Return eligible Buy with Prime orders at more drop-off locations with no boxing or labeling required
These new features make Buy with Prime a lot more convenient and make more purchases outside the platform feel more like shopping on Amazon and may lead to more Prime membership sign-ups.
Amazon Top Terms
Jump into the last two weeks and explore the Amazon top 10 search terms that have seen a surge in popularity from October 29 to November 11.
In this week's Amazon top 10 rankings, “command hooks for garland” has claimed the #6 spot, while “fairy lights for Christmas tree” sits at #10. Both have experienced a substantial sales surge, with the former jumping from 1,802 units per day and the latter from 223 units per day over the past two weeks.
This surge in popularity is likely tied to the approaching Christmas season. Aligning campaigns with events like Black Friday and Christmas can yield significant results. For insights into seasonal and event-based advertising, delve into our article: What Is TACoS and How Do You Keep It at a Minimum?
No more hiding. The FTC proposed a ban on hidden fees in e-commerce platforms.
Oh, Snap! Snapchat users can soon buy products directly from the app as it partners with Amazon to expand its e-commerce presence.
Happy holidays! Amazon said email attachment schemes have recently doubled. Just in time for peak season.