Welcome to Three Pillars 'The Basics' blog series. Over the coming weeks we will introduce you to the basics of professional selling on Amazon: from listing your products to advertising. Today, we will start by focusing on one of Amazon's highest value unique selling points, Amazon Prime. Prime is one of the most important
What is Prime?
Amazon Prime is Amazon's subscription service that provides customers with a range of benefits including free next day (and same day- where applicable) shipping on their Amazon orders, streaming services (Video and Music), and more. Third Party sellers and Amazon Retail can enroll their products onto Amazon Prime to take advantage of increased visibility within the Amazon catalogue, increased sell-through, deals, and more.
Why should you be on Prime?
Having your products available on Amazon Prime is vital to success. It's simple, Prime increase your sales because more than 100 million Prime members want to get value from their Prime subscription, next day shipping is convenient, and they trust the Prime brand. For Prime eligible businesses, this means more sales. Amazon says that Prime increases sales by at least 30%. In reality, we have seen much stronger results.
We invite you to walk the journey of a Prime customer with us:
1. Go to www.amazon.co.uk;
2. Type the name of a product that you are considering buying (e.g. iPad) and hit enter;
3. Look at the top left of your screen. How many results are surfaced for your search? In our example (see above) we have "over 60,000 results".
4. Now head to the the left hand side of the screen and check the 'Prime' box.
5. Now look again at how many results are surfaced for your search. Now we are down to over 30,000 results, over 30,000 non-Prime offers were removed from our search!
How many of your results were filtered out?
If you take nothing else from this article, remember that being Prime eligible is a key hygiene factor. Without Prime enrolled listings, you are shrinking your target market.
How do you become a Prime business?
To be Prime eligible you must enroll into one of Amazon's fulfillment options: 1. Fulfillment by Amazon, or 2. Seller Fulfilled Prime. Fulfillment by Amazon involves you sending inventory to Amazon's warehouses, and Amazon will dispatch your orders and handle customer service for a fee (which depends on the size and weight of the product). Seller Fulfilled Prime allows you to keep product in your warehouse, pack and label your product, and Amazon Prime carriers collect orders from your premises every business day. We encourage you to read our blog posts about each fulfillment method, each have their benefits and drawbacks.
If you're not sure which method is right for you then feel free to contact us at Three Pillars - we can evaluate your business and build a Prime fulfillment proposition that works for you.