Marketing Tips
Jun 19, 2023
Amazon Buy with Prime vs. Multi-Channel fulfilment vs. Fibr: Choosing the best option for D2C e-comm
Meenal Chirana
5 mins to read
Introduction
Amazon Buy with Prime - To Use or Not to Use?
In this blog post, we uncover the secrets behind these fulfilment options and empower D2C e-commerce brands on Amazon to make informed decisions that can propel their business to new heights.
So, let's dive in and explore the pros and cons of Buy with Prime, Multi-Channel Fulfilment, and Fibr.
Buy with Prime - Simplified Shipping and User Data Access
Buy with Prime is a shipping option for third-party sellers on Amazon that allows Prime customers to enjoy free two-day shipping. It offers merely two advantages increased consumer trust, and consumer data. When consumers see the Buy with Prime logo, it instills confidence in the brand, leveraging the trust associated with Amazon's shipping process.
Buy with Prime, although widely recognised and trusted by customers, falls short in various aspects. It drastically reduced the brands AOV, since it only allows checkout of one product and a single unit!! Furthermore, non-Prime customers are excluded from this shipping option, potentially limiting the customer base and increasing consumer drop off once they have started to checkout. Buy with Prime does not allow the application of discounts or promotional offers.
Additionally, the pricing discrepancies between Amazon and Buy with Prime can create a mismatched consumer experience and potentially confuse customers.One of the most significant drawbacks of Buy with Prime is the high costs associated with using this shipping option. Sellers incur an additional 3% cost over the current checkout process, which can eat into profit margins and impact overall profitability.
While Buy with Prime does enhance consumer trust by displaying the Prime logo and offering fast and reliable shipping, it has limitations that can hinder your sales potential. The exclusion of non-Prime customers, reduced AOV, limited promotional options, and high costs should be considered when evaluating the suitability of Buy with Prime for your business.
For Brands:
Pros:
Consumer Trust:
Displaying the Buy with Prime logo taps into the inherent trust customers have in Amazon's shipping process, potentially boosting conversion rates.
Simplified Checkout Process:
Buy with Prime streamlines the purchasing process by allowing customers to quickly check out using their Prime membership.Cons:Potential Customer Drop-off: Approximately 40-50% of total shoppers drop off if they don't have a Prime membership, leading to potential loss of customers.
Higher Costs:
Buy with Prime incurs additional costs, including higher fees and a reduction in average order value due to the limitation of checking out only one product at a time.
Limited Support for Subscriptions:
Buy with Prime does not offer support for subscription-based products, potentially limiting revenue opportunities for brands.
No A/B Testing:
Brands using Buy with Prime do not have the option to conduct A/B testing to evaluate the effectiveness of their strategies.
For Consumers:
Pros:
Trusted Prime Membership:
Buy with Prime leverages the trusted Prime membership program, offering customers the convenience of fast and free shipping.
Cons:
Limited to Prime Members:
Buy with Prime may exclude customers who are not Prime members, potentially reducing the reach of the brand's offerings.
Limited Shopping Experience:
The restriction of checking out only one unit at a time and the absence of subscription options may result in a less optimal shopping experience for some consumers.
Multi-Channel Fulfillment - Faster Shipping Process & Consumer Trust
For D2C e-commerce brands looking to expand their reach beyond Amazon, Multi-Channel Fulfillment can be a viable option. The benefits of Multi-Channel Fulfillment include increased consumer trust, reduced hassle for the brand, and improved sales on Shopify. Brands can leverage the reputation and trust associated with the Amazon brand to enhance the shipping process.
Customers feel more confident knowing that their orders will be handled by a reputable provider, leading to increased consumer trust and satisfaction.By utilizing Amazon's efficient fulfillment network, the brand can ensure timely and accurate deliveries, which can significantly impact your sales and conversions. It provides flexibility in terms of shipping options and supports subscriptions. This allows you to cater to different customer preferences and capture recurring revenue
While Multi-Channel Fulfillment supports subscriptions and offers a consistent customer experience, it does not necessarily contribute to significant Amazon growth or brand visibility on the platform. Although multi-channel fulfillment may not directly impact your average order value (AOV), it offers ease of order for customers and reduces brand hassle for sellers.
Additionally, costs may be higher compared to other fulfillment methods, but the benefits of consumer trust and ease of use may outweigh the additional expenses. All in all, mutli-channel fulfillment does not change the consumer experience a lot for the better or worse. It helps in instilling trust due to fulfilment of Amazon.
For Brands:
Pros:
Streamlined Operations:
By leveraging Amazon's fulfillment network, brands can simplify order management and fulfillment across multiple sales channels.
Cons:
Limited Growth of Amazon Business:
Multi-Channel Fulfillment primarily focuses on expanding sales channels without significant additional benefits for brand growth on Amazon.
For Consumers:
Pros:
Trusted Shipping Process:
Multi-Channel Fulfillment benefits from Amazon's reliable shipping process, instilling trust in customers regarding the delivery of their purchases.
Cons:
Potential Drop-off in Consumer Funnel:
Multi-Channel Fulfillment does not directly address the issue of customer drop-off during the research process, potentially impacting conversion rates.
Fibr - Elevate your Amazon business & Enhanced Consumer Trust
Fibr is a comprehensive solution designed to empower D2C e-commerce brands on Amazon. It provides a range of benefits, including increased consumer trust, improved average order value (AOV), and enhanced brand visibility.
With Fibr, you can provide a consistent & reliable consumer experience to consumers, thereby increasing their trust and establishing long-term customer loyalty. Consumers can research products, read reviews, and make purchases across website and amazon without drop-offs or encountering competition.
Fibr's support for subscriptions and easy management of product quantities leads to higher average order values, boosting revenue for businesses.
Moreover, Fibr offers advanced features such as separate landing pages, A/B testing, and audience retargeting. These features provide businesses with the flexibility to optimise their marketing strategies, target specific audience segments, and increase conversions.
Additionally, Fibr comes with lower costs compared to other options and minimises brand hassle, and the savings on referral fees waived by Amazon further contribute to cost-effectiveness.One standout advantage of Fibr is its flexibility, allowing brands to have control over which checkout options they showcase in their campaigns.
This enables them to optimize the checkout experience and maximize conversion rates based on their specific strategies and target audiences. Fibr empowers brands to create a seamless and personalized shopping journey, whether through Amazon's Buy with Prime or their own website, leading to improved customer satisfaction and higher conversion rates.
Although Fibr does not provide direct user data, it allows you to create audience segments, enabling you to fine-tune your marketing efforts and maximise your Amazon growth potential.
For Brands:
Pros:
Amazon Growth:
Fibr facilitates brand growth on Amazon by optimising strategies and driving sales through targeted marketing efforts.
No Loss to Competition:
With Fibr's all-in-one solution, brands can retain customers within their ecosystem and by eliminating search on Amazon, reducing the chances of losing them to competitors.
Flexible Marketing Strategies:
With features like separate landing pages and A/B testing, Fibr empowers brands to experiment with different approaches, refine their marketing strategies, and optimise performance.
Audience Retargeting:
Fibr enables brands to retarget audiences through popular advertising platforms like Facebook and Google, maximising the reach and impact of their marketing efforts.
Streamlined Operations:
By consolidating information and providing a centralized platform, Fibr simplifies operations for brands, allowing them to focus on core activities and enhance overall efficiency.
Cost Savings:
Fibr incurs a maximum of 1% additional cost as a Fibr fee, significantly lower than other options. Additionally, it allows brands to save on referral fees waived by Amazon (3% - 10%), contributing to higher profitability.
Cons:
Limited User Contact Data:
Fibr does not provide direct access to PIA information, restricting communication options to retargeting through platforms like Facebook and Google.
For Consumers:
Pros:
Enhanced Trust:
Fibr integrates with Amazon's platform, displaying verified customer reviews, ratings, and Q&A, fostering trust and confidence in products.
Streamlined Shopping Experience:
Fibr's integration with Amazon simplifies the shopping process for consumers, providing access to all relevant information (pricing, delivery, reviews) across Amazon & website in one place.
No Significant Cons:
Fibr provides consumers with an excellent shopping experience without any significant drawbacks.Please note that while these points highlight the pros and cons of each option, the suitability of each option may vary depending on the specific.
Insights from Industry Experts and Brand Success Stories
In a recent Fireside chat, Amazon brazenly boasts about the staggering 78% conversion increase Being Skincare allegedly achieved through Buy with Prime. However, the irony lies in the fact that currently, neither the brand features the Buy with Prime button nor is it present on Amazon.
This raises the question: What could have possibly transpired for a brand to abandon a feature that allegedly boosted their conversion by 78%? Or was it just a tall tale?
But amid these questionable claims, Amazon's Multi-Channel Fulfillment emerges as a helpful offering. It has enabled brands to expand their reach and provide hassle-free shipping to customers. One such company that experienced the benefits of this approach is Company A, a natural skincare brand.
By adopting Multi-Channel Fulfillment, they witnessed a remarkable 20% increase in sales volume, effectively reaching more customers and boosting customer satisfaction.
Now, let's turn our attention to another fulfillment option that has made waves in the industry—Fibr. This innovative solution has proven its worth by helping companies optimize their marketing strategies and target specific audience segments effectively. One notable success story involves Company B, a direct-to-consumer (D2C) brand in the food industry.
By implementing Fibr as their fulfilment option, they achieved an impressive 35% increase in conversion. The advanced features offered by Fibr empowered the brand to enhance its marketing performance, drive sales, and thrive in a fiercely competitive market.
These case studies highlight the dynamic nature of fulfilment options and how companies can achieve remarkable results by carefully choosing the right approach. It's crucial for brands to critically evaluate the claims and weigh the potential benefits against their specific needs and circumstances to make informed decisions that lead to long-term success.
TL;DR
When choosing the best fulfilment option for your Amazon business, it is crucial to consider factors such as consumer trust, marketing capabilities, pricing, flexibility, and overall growth potential. By carefully evaluating these factors, you can make an informed decision that aligns with your business objectives and helps you stay ahead of the competition in the dynamic world of e-commerce.
Fibr provides a comprehensive set of features that not only enhance consumer trust but also offer flexibility, advanced marketing capabilities, and lower costs. By leveraging Fibr, you can establish a strong brand presence, drive sales, and unlock long-term customer loyalty.
Multi-channel fulfilment, although not as robust as Fibr, offers efficiency, consumer trust, and the ability to cater to different shipping preferences. It allows you to streamline your order fulfilment process and leverage Amazon's trusted brand.
While it may not provide advanced marketing features or subscriptions, it still serves as a reliable option for optimising your Amazon business.
Buy with Prime, despite its widespread recognition and customer trust, falls short in terms of benefits for sellers. The limited customer base and inability to apply discounts or promotional offers can hinder your sales potential. While it is still a viable option, it may not provide the same level of growth and optimisation as Fibr and multi-channel fulfilment.
Meenal Chirana
Meenal, Content and Social Media Manager at Fibr, brings five years of experience in the content field to the team. Her passion for creating engaging content is matched only by her expertise in SEO and social media management. Passionate about all things content and digital marketing, she is always on the lookout for innovative ways to connect with audiences and elevate brands.