Amazon Prime is an exclusive service provided by Amazon for its exclusive clients. Here the customers are more serious and are specifically looking for the niche and best products. Amazon Prime is a VIP service that is paid for and hence it comes with special services and facilities. Apart from the amazing Amazon shopping experience, it also comes with certain other facilities like videos, songs photo storage, and many more that will soon be added.
What is the difference between Amazon and Amazon Prime?
The basic theoretical difference between Amazon and Amazon Prime is that Prime is a paid service offered by Amazon. Speed deliveries and convenience to the customers are what make Amazon Prime an exclusive service. In addition to shopping, it also offers various other services which we have discussed below in length. It is a paid subscription and the annual subscription is about $99.
But why Amazon Prime?
To understand why to sell on Amazon Prime we need to first understand why to buy from Amazon Prime, the customer’s perspective. Well, where do I begin from shipping benefits, attractive Amazon coupons, quick and free delivery options (two-day delivery or even same-day delivery), personalized wrapped products, quality check products, and many more? The VIP treatment for subscribers is remarkable and worth all the jealousy. Let me explain it to you one by one.
Amazon Prime Shipping:
Although most products are shipped for free on Amazon Australia, there is a minimum price limit for that. However here there is no minimum limit for that and quick deliveries as quick as same-day delivery options are also available.
Now, how cool is that! Especially when holidays are around the corner or when you have forgotten your girlfriend’s birthday (how typical!), worry not, Amazon Prime at your rescue. It also delivers on Sunday and so if you have ordered a product on Friday it will be delivered to you in the next two days that is on the coming Sunday.
Amazon Prime Pantry:
This is a specialized grocery shopping facility where you can order fresh vegetables or fruits and other grocery items. The already competitive Amazon pricing is further discounted on its prime Pantry facilities. Certain products are available only on Amazon Prime which adds to the benefits. On special days there are special offers too.
You can find items under the categories of food, beverages, household and pets, beauty and grooming, wellness and healthcare, and many more. You can also order a single box of cereals for free shipping. The same-day delivery options work the best for Prime Pantry, so let the Prime do the heavy lifting for you, while you sit back relax and enjoy your weekend with family.
Amazon Prime Early Access:
On special days like Amazon Black Friday, the 12 day Christmas rush, or during the sale seasons, Amazon usually faces huge traffic and so Prime members are given exclusive access to view and purchase items 30 minutes before ordinary Amazon customers.
This small time window makes a huge difference because often the products are sold out within these 30 minutes and the Amazon buyers never even get a chance to view these products. The items are further discounted on Prime which boosts Amazon sales like never before.
There are also special Amazon coupons offered from time to time.
Amazon Kindle Owners Lending library: For book lovers, Amazon Prime offers special services which can be availed only on Kindle, Kindle Fire, and Kindle tablets. The facility lets the subscriber avail of over 800,000 books available for sale on the Kindle lending service and also offers one free e-book every month.
Shared Prime membership: Amazon also allows you to share the Amazon Prime subscription with 2-3 people. The same facilities can be availed while the subscription charges can be divided. People can even gift a subscription to an Amazon shopping freak friend of yours. This would surely prove to be a thoughtful gift just before the Amazon Black Friday period.
You can also avail of an Amazon promo code which gives you extra discounts and offers under Amazon Prime.
Videos, songs, and others: In addition to shopping, you can also avail thousands of new movies, songs and also get a huge photo storage space in Amazon Prime.
Recommended Guide: Amazon Prime Day Updates 2021.
What does this mean for the traders? How Do I sell on Amazon Prime?
With customers expecting quick and fast delivery, for traders, this means just one thing, keep the inventory full and your shipping ready. To provide special services you need to be super ready. Never let your products run out of stock. Millions of people are registered with Amazon Prime and with Amazon Australia launched; Amazon Prime is spreading its roots all across the globe. The difference between Amazon products and Amazon Prime products is the ‘Prime badge’ and to earn that badge you need to meet certain criteria, which we will mention below. During the festive season, Prime products specifically mention ‘delivery before Amazon Black Friday’ or ‘delivered before Christmas’
Amazon Prime claims to boost your sales by over 50 percent which is a huge benefit but it also requires your shipping system to be in place. Also as Prime members expect quicker deliveries, you can raise your product price to match the facility provided.
How to sell on Amazon Prime? What conditions do I have to meet?
For the traders who have an Amazon seller account or Amazon Vendor account, they get a trial period of 5 to 90 days, to get accepted into the Amazon Prime service or to get an invitation for the same. The primary condition is a perfect shipping system. The above-mentioned extra facilities for the customers also mean that the traders have to work extra for the same. You need to have the shipping facility in place.
The performance requirements have to be met at the first 200 prime orders and a 99 percent one-time shipment rate is required to get accepted into Amazon Prime. A cancellation rate of less than 1 percent has to be maintained. The time for the delivery shipment starts as soon as the item leaves the warehouse.
Also regardless of when the customer has ordered the product, it must reach the customer on the same day, an early delivery will add to your favor when you sell on Amazon Prime.
In case you fail to fulfill the criteria, the trial period resets for another 90 days or the first 200 prime orders so that you can keep trying until you reach the target.
Recommended Guide: Amazon Lightning Deals.
What does it cost to be on Amazon Prime?
There are certain conditions that you need to understand before you launch yourself into Amazon Prime.
- You must approve return immediately
- In case of shipping in two days, you must provide free shipping. The price can be raised in the item price itself)
- Read the refund conditions thoroughly before you get started. There are certain conditions wherein the buyer has to pay for the refund, whereas in some others, the trader needs to pay for the refund, For example, in case of open software, the buyer needs to pay for 100 percent refund amount, whereas in case of broken or damaged delivery, the trader needs to pay.
- Read late refund fees policy for Amazon Prime.
- In case of shipping for Amazon Prime, Amazon does provide its Fulfilled by Amazon (FBA) facilities. However, if you do find an alternative and cheaper option, then you can go for it but only through the Amazon dashboard. This is required so that Amazon can keep a check on your shipment.
Why should I sell on Amazon Prime?
Well, it is a valid question, after all the efforts that you have put in, you would surely want to know what is in it for you. Firstly, as per Amazon Prime’s internal report, Amazon sales boost up to over 50 percent, if you are linked with Amazon Prime. Customers always prefer prime products which means your products will sell faster on Amazon Prime as compared to the regular Amazon. Of course, you can continue using Amazon along with Amazon Prime. Many go for the Prime trial period for thirty days.
This is also a great niche to explore. Prime increases customer loyalty and satisfaction which in return gets you good reviews (Check out this detailed guide for Amazon Review Trader) and the overall ranking of your product rises on the Amazon page. Also, increased sales mean increased work. You might get stuck with unproductive work like accounting and sales management. To keep things simple you might have to invest in a proper and worthy analytics tool, try SellerApp to keep things easy going for you. This tool is perfect for Amazon Prime, it helps you understand the customer buying pattern, explores the optimal sales potential, gets an overall view of the competitors, and helps you get the maximum out of backend keywords.
Is Amazon Prime Australia worth it?
Australia is a booming market that has already garnered world retail market attention. At the very launch of Amazon Australia, Bezos’ team announced the launch of Amazon Prime soon.
The Amazon Prime video was already launched in December 2016 but the entire Amazon Prime shopping site came in a bit late. Many Australian brands like Kathmandu, Styletread, Sol Sana, Bonds, Cancer Council and Wittner have already associated themselves with Amazon and just like the brands.
Australian customers are also awaiting the launch in Australia. At the launch, Amazon promised that the cost of a subscription would be affordable and the services offered would be great.
Amazon Prime is yet to reach its fullest in Australia and so it gives time for the traders to set up their shipping system in place. The two-day Delivery condition even during sales can get tough for foreign traders in Australia. However, you would surely not want to miss this great opportunity to expand your business along with Amazon Australia.
Important things to know before you get started with Amazon Prime
There are certain restrictions when you shop at Amazon Prime which you must know as a trader. Prime does not deliver magazine subscriptions, personalized gift cards, and other things that are not eligible for delivery. There are some international destinations where Prime facilities cannot be availed (check out the list on Amazon.com).
Just like Amazon, Amazon Prime also does not allow you to resale old and used products. Items above a certain amount need the recipient’s signature and cannot be delivered to the PO addresses (This mainly applies to expensive products).
After knowing all that there is to know about how to sell on Amazon Prime, it might get a bit easier to finally make a decision. Weigh all the pros and cons and frankly, the trial period is worth a shot if you truly are ready to expand your business globally. The raised price and exclusive customer base will definitely help you boost your business.