Is Buy With Prime Worth It?

The program was previously invite-only, but Amazon has since opened it up to all eligible retailers.

Published March 31, 2023

BY:
SUZ MORRIS

Contributing Writer

Businesses that are looking to expand their scope and reach new customers may have heard about Amazon's Buy with Prime program. But what is Buy with Prime, anyway? And is it worth it for all sellers? We've laid out everything you need to know about it below, including benefits and other considerations to take into account before trying it.

What Is Buy With Prime?

"Buy with Prime," Amazon's newest comprehensive order-fulfillment solution for retailers, enables Prime members to check out via other retailers' sites. The program gives customers almost all of the same perks Amazon offers on their own marketplace, but now allows members to check out directly on other retailers' sites using their existing Amazon account.

Not only does Buy with Prime offer more convenience for customers, it also offers all of the benefits included with Prime, just hosted on the retailers' own sites. This puts Amazon in more direct competition with Shopify and BigCommerce. Both have appealed to sellers looking to grow their online presence by offering them tools to manage their direct-to-consumer websites.

Let's take a look at the unique offerings of Buy with Prime for retailers, and how to decide if Buy with Prime is right for you.

4 Benefits of Buy With Prime

1. Prime Is Well-Trusted by Shoppers

Amazon's globally recognized Prime logo can signal trust and help build confidence with customers. When you display the Prime logo on your site and marketing materials, shoppers can associate your brand with all of the perks Amazon's Prime program offers, including 2-day delivery, secure checkout, and easy returns.

Buy with Prime's benefits include its association with the Prime program and ability to increase customer engagement.

2. It Can Increase Customer Engagement

The Prime logo can help brands increase their credibility, but the program's integration with Amazon ad campaigns can also assist businesses in drawing in shoppers and driving engagement. Brands like Wyze and Hydralyte saw noticeable growth in conversion — 25% and 14%, respectively — since adding the program, according to an article on the Buy with Prime website.

3. It Has Robust Fulfillment Solutions

Instead of manually storing and processing your inventory during fulfillment, Buy with Prime lets you use your existing inventory at Amazon fulfillment centers. Amazon's Buy with Prime service can handle anything from storage to delivery and even returns. Additionally, Buy with Prime integrates with Amazon's Multi-Channel Fulfillment, a solution that connects e-commerce businesses to Amazon's fulfillment network.

4. It's Affordable and Scalable

Amazon's Buy with Prime program allows you to pay as you go. "With no fixed subscription fee or long-term contract required, it's easy to get started and you can cancel at any time," the company states.

Buy With Prime vs. Shopify's Shop Pay

While Amazon's competitors like BigCommerce and Shopify offer robust e-commerce platforms for sellers, the introduction of Buy with Prime put Amazon as a top contender. To understand their differences, let's compare Shopify's Shop Pay to Amazon's Buy with Prime head-to-head.

Reach and Potential Engagement

Buy with Prime: Buy with Prime has already shown it can attract and convert new customers. The program is associated with an average 25% increase in shopper conversion rates, so there's no doubt the consumer-trusted Prime logo can help sellers drive engagement and expand reach. Program members can benefit by showing off the Buy with Prime badge to shoppers.

Shop Pay: On the other hand, Shopify's Shop Pay app has over 100 million registered users, which at first glance doesn't quite compare to Amazon's 310 million customers worldwide. However, Shop Pay's 2X audience growth since 2020 suggests a high level of audience engagement. And a more engaged audience means more active shoppers.

Fulfillment and Storage

Advancements in fulfillment solutions have made it easier for retailers to navigate every step of the purchase process, from order to delivery and return to refund. Even better news for sellers, Shopify and Buy with Prime both offer noteworthy fulfillment services.

Buy with Prime: Buy with Prime's fulfillment is great for those looking to scale. The program's updated features now allow sellers to use their existing inventory at Amazon's fulfillment centers when processing Buy with Prime orders on their own site. Buy with Prime simplifies the fulfillment process for sellers looking for a solution that provides storage, delivery, and returns.

Shop Pay: Shopify provides fulfillment services through the Shopify Fulfillment Network. It offers a variety of options for sellers, including data-driven inventory distribution, inventory storage, order packaging, delivery, returns processing, and free professional support. While both are solid options, sellers might want to also consider Shopify's Fulfillment Network, as Buy with Prime isn't a one-size-fits-all solution for advanced options outside Amazon's network.

Fees and Additional Costs

Sellers can expect service fees and additional costs to come in around 20%-40% per transaction, for both Buy with Prime and Shopify. However, here are a few more things to consider when comparing costs.

Buy with Prime: Buy with Prime is a great option for businesses looking for flat payment processing fees and no long-term contracts. Retailers can join and cancel Buy with Prime at any time, and through the Amazon Supply Chain, access Multi-Channel Fulfillment. But one downside to Amazon's pricing structure is the Prime service fee, which is 3% per order with a $1.50 minimum. While this enables sellers to display the Prime logo, it does come at a price. Shopify's equivalent, the Shop Promise badge, comes with no added costs.

Shop Pay: Shopify's tiered storefront approach combined with the Shopify Fulfillment Network comes in at a competitive rate compared to Buy with Prime. Retailers can choose e-commerce solutions ranging from Basic for $29 per month to Advanced, which starts at $299 per month. These plans offer payment processing fees ranging from 2.9% plus 30 cents online (Basic) to 2.4% plus 30 cents online (Advanced). Although affordable, retailers looking to avoid long-term contracts might want to consider other contract-free alternatives, such as Buy with Prime.

Is Buy With Prime Worth It for Your Business?

While Buy with Prime offers many benefits for sellers, it's important to decide whether or not the program is right for your business before diving in. It's promising for sellers looking to scale and is also a great option for established retailers looking to convert on-site. But here are some areas you should consider when deciding if Buy with Prime is right for you.

What About Service Fees?

When it comes to service fees, there's no need to stress. Amazon's Buy with Prime has competitive ones that give sellers the flexibility to implement as they scale. The program's fulfillment fees can range anywhere from 20%-40% per transaction, which is near the market average when compared to Shopify's Fulfillment Network.

Buy with Prime doesn't have fixed subscription costs or long-term contracts, which is helpful for sellers wanting to test the waters.

No Long-Term Contracts

Amazon's promise of no fixed subscription fees and no long-term contracts is a solid option for sellers looking to test the waters. Retailers looking to try Amazon's offerings in addition to their Shopify or BigCommerce site can easily do so and cancel at any time.

Implementation and Eligibility

Before businesses can get started with Buy with Prime, they need to take certain steps to qualify for this Amazon seller program. Some eligibility requirements include obtaining a Professional Seller Central Amazon account and enabling Amazon's fulfillment services, among others.

Final Considerations

If you're a brand looking to scale or even a business looking to try new channels, Amazon's Buy with Prime offers a comprehensive solution with added convenience for customers. While Buy with Prime isn't a direct competitor for Apple Pay or Shopify's Shop Pay, it can still help sellers reach more customers as they integrate into the Amazon Prime network.