What Is The Amazon DTC Plan? 

What Is The Amazon DTC Plan? 

What is the Amazon DTC plan?. Amazon over the years has grown to conquer the e-commerce industry. Since the pandemic they have proven how they can successfully cater to high demand and ever-growing customer demand. 

Amazon are now changing the game again with “Buy with Prime”. This new process is said to affect the payment gateway and fulfilment methods. Here we explain how exactly they plan to do this and what it might mean for you. 

Amazon DTC

What’s The End Goal? 

The big goal is that E-commerce shoppers will be able to shop on other websites using their own Amazon Prime accounts. Just simply add an item to your basket and check out of any website with the help of your prime account like you would a credit or debit card.  

This will work in a similar fashion to what we know now as Amazon pay. The steps were,  

  • Log in with the Amazon Prime user id and password. 
  • Use a credit card to pay. 
  • Choose an address added to the account.  

With many other websites already offering a 2-day free delivery option, Amazon is a trustworthy and established among customers. 

Are There Restrictions? 

There are many options Amazon offers with buy with the prime feature, but there are some limitations. All non-FBA sellers will now have to send their merchandise to the Amazon warehouse. Only after this will the products be cleared for pick up by Amazon.  

Multiple Payment Options

If you’re not a prime member the buy with prime option will not be available which seems obvious to say. This means that sellers won’t be able to track all their order payments from one single gateway. 

Sellers will have to maintain this gateway as an option for prime members and use other payment methods for other users i.e. debit/credit card. This also creates a challenge of maintaining different multiple fulfilment strategies.  

It’s Only The Beginning

There are no current websites that are running live with buy with prime. There is a lack of clarity on what will be the fee for the buy with the prime model. Amazon has not stated the exact amount that the sellers will be charged. 

With Amazon being the giant, it is we would have to wait and watch how this will work as a payment channel. With other competition like Paypal, Apple Pay, Buy now pay later, etc, we may see a specific strategy by Amazon to rise to the level of the other checkout options.  

Final Word 

Amazon DTC’s master plan is definitely in its early stages, and we will have a lot more information to give once the time comes. If you would like to discuss all things Amazon why not book a call with our MD Kerra. If you would like to check out what services we offer you can click here

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