Dive Brief:
- Amazon announced Thursday it would offer sellers free access to shipping software designed to speed fulfillment and lower delivery costs.
- Amazon sellers in the U.S. and U.K. will no longer need to pay the $450 delivery fee for Veeqo, which the e-commerce giant bought earlier this year. The software helps sellers find discounted shipping rates from major carriers such as UPS and FedEx, according to a news release.
- Sellers will also be able to manage orders across multiple sales channels, not just Amazon, the release said. U.S. merchants will also receive early access to new features Amazon plans on rolling out later this year.
Dive Insight:
Amazon unveiled a number of new services for sellers as the company works to expand its e-commerce reach.
This month, the online retailer announced free email marketing capabilities to help merchants attract new customers. Amazon also rolled out “Buy with Prime” earlier this year, a program that allows sellers to offer Prime benefits including free, next-day delivery and free returns on their own online stores.
The services present opportunities for sellers to bolster their businesses, streamline inventory management and speed deliveries. Amazon has grappled with falling e-commerce demand and has slowed its network expansion in response.
Both Veeqo and “Buy with Prime” also offer sellers a chance to grow sales off of Amazon as well. Veeqo allows sellers to ship through Etsy, eBay and Shopify. “Buy with Prime” will first be available to Amazon Marketplace sellers using the e-commerce giant’s fulfillment service before expanding to include other retailers.
Amazon has weathered criticism that it has barred merchants from offering lower prices to other retailers through its contracting practices with wholesalers and third-party sellers. California’s attorney general sued Amazon for allegedly suppressing price competition across the market.
CFO Brian Olsavsky noted in a prior earnings call that third-party sellers constituted a record 57% of all products sold on Amazon in Q2.
“Selling partners helped to expand the selection we can offer customers while fulfillment by Amazon provides sellers the ability to offer fast delivery,” he said.
