Latest news with #SellerFulfilledPrime
Yahoo
28-05-2025
- Business
- Yahoo
Amazon readies Premium Shipping changes in June
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Amazon sellers offering Premium Shipping options will have to adjust to new on-time delivery requirements starting next month, according to an announcement May 12. Premium Shipping enables sellers to provide one-day and two-day delivery to shoppers using their own shipping methods, rather than Amazon's in-house network. Sellers need to maintain an on-time delivery rate of 97%, evaluated on a 30-day basis, to stay eligible. On June 29, the delivery requirement will drop to 93.5% and performance will be reviewed on a weekly basis. Shippers that don't meet a particular Premium Shipping parameter will receive two warnings before being booted from the program on the third infraction for that requirement. Although Amazon softened on-time delivery targets for Premium Shipping, sellers in the program have clear incentive to maintain strong performance. "Under the new cadence, a single bad week can put you on notice, and three such weeks in a month spells immediate removal from Premium Shipping," Indy Pereria, head of people operations at fulfillment provider Cahoot, said in an analysis of the changes. "You'll need more consistent performance throughout each month, not just a healthy 30-day aggregate." Maintaining a high level of performance could entail using reliable carriers for Premium Shipping and collaborating with them effectively. Setting clear expectations, providing volume forecasts and having regular conversations on performance are among the ways shippers and carriers can work together to ensure strong service, experts said during a May 7 Supply Chain Dive and Retail Dive event. Premium Shipping sellers must use UPS, the U.S. Postal Service, FedEx or OnTrac for the bulk of one-day deliveries and all two-day deliveries, according to Amazon's website. Amazon also plans to adjust various Seller Fulfilled Prime requirements on June 29. The program allows sellers to independently handle fulfillment and still be able to display Amazon's coveted Prime badge on their products. One change will be Amazon's implementation of minimum shipment requirements for Seller Fulfilled Prime users. Sellers who have not shipped at least 100 packages through the program per month, or have not shipped consistently through the month, will face a daily limit on maximum Prime order volume. That limit will end once the 100-package threshold is reached and Prime packages are shipped consistently. "We have observed sellers are best equipped to meet these requirements when they are frequently fulfilling Seller Fulfilled Prime orders, and as such we expect you to consistently demonstrate that you can meet all Seller Fulfilled Prime program requirements regularly," Amazon said on its website. Editor's note: This story was first published in our Logistics Weekly newsletter. Sign up here. Recommended Reading Amazon reopens Seller Fulfilled Prime enrollment, nixes planned fee Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
FedEx Exec: Amazon Delivery Partnership ‘Will Push Up Our Yield'
Amazon and FedEx are reviving a ground delivery partnership after a six-year hiatus. The companies reached a multi-year deal in which FedEx would provide last-mile residential delivery of select large packages for Amazon. More from Sourcing Journal Amazon's Latest AI Feature Allows Sellers to Upgrade Old Listings Amazon CEO: Tariffs Haven't Brought Down UPS Slashes 20,000 Jobs as it Weans Off Amazon The deal resuscitates a relationship that ended in 2019, when the last contract between the two companies expired. FedEx stopped performing ground deliveries for Amazon packages at the end of the deal as the logistics firms operated more as competitors, and the e-commerce giant expanded its logistics network. Third-party sellers using Seller Fulfilled Prime on Amazon's marketplace could still use FedEx as a shipping option. Full terms of the deal were not disclosed. 'We've reached an agreement with FedEx to serve as one of several third-party partners to deliver packages to our customers,' said an Amazon spokesperson. 'FedEx joins our other third-party partners like UPS and the USPS, that work alongside our own last mile delivery network to help us balance capacity to best serve customers.' A FedEx spokesperson called the partnership 'mutually beneficial.' 'The yield will be accretive to our system average in the domestic market,' said FedEx chief customer officer Brie Carere during a Bank of America investor conference Monday. Carere touted the logistics company's ability to 'move heavy-to-handle packages better than anyone.' 'You will see that this business is predominantly large-package, so it is not the average weight that Amazon and UPS have,' said Carere. 'It will be part of the FedEx Ground portfolio. It will be parcel, but it is heavier weight. It's going to push up our average weight per package, and it will push up our yield.' Amazon's team-up with FedEx comes months after UPS revealed its goal to cut shipment volumes for the tech titan by more than 50 percent by the second half of 2026. Amazon is UPS's largest customer, accounting for 12 percent of its revenue in 2024. But according to Amazon, the FedEx deal is not meant to replace UPS volumes, with a spokesperson saying claims otherwise are 'flat wrong.' 'My initial read of the situation is that Amazon views these shipments as harder to move through its in-house delivery network than smaller packages (and UPS has the same view),' said Jason Miller, interim chairperson, department of supply chain management at Michigan State University's Eli Broad College of Business. Miller told Sourcing Journal these shipments could offer 'FedEx an opportunity given its network structure to take advantage of UPS' strategic decision to reduce business with Amazon (which isn't as profitable as package deliveries for other e-commerce platforms because Amazon's volume discount cuts into UPS' margin per delivery).' Business Insider first reported the news of an Amazon-FedEx partnership Monday afternoon. The publication said it viewed an internal document that gave Amazon 'cost favorability,' but didn't reportedly specify the extent of how many packages would be handled by FedEx. That document also apparently pointed to 'capacity constraints' in Amazon's network that 'securing FedEx capacity' would help solve. Although Business Insider said the document outlined FedEx's work within Amazon's Extra Large delivery network for bulky items like TVs and furniture, the e-commerce giant called the reference to that element of the partnership 'premature at this point.' Amazon is still largely self-reliant. More than two-thirds of Amazon packages are delivered via Amazon's own logistics network in the U.S., the company says. Of the four major American parcel carriers, Amazon saw the biggest year-over-year jump in volumes at 7.3 percent in 2024, according to Pitney Bowes. Amazon's 6.3 billion parcels delivered were only behind the USPS, which delivered 6.9 billion packages. FedEx was the only of the U.S. carriers that saw a parcel volume decline, at 3.6 percent from the year prior to 3.7 billion. In partnering with Amazon, FedEx gets another revenue stream to help fill that it lost its air cargo contract with the USPS to UPS last year. Last year, another report from The Wall Street Journal had said the logistics companies had entertained a returns partnership in 2023, in which FedEx would accept returns of Amazon packages at its more than 2,000 FedEx Office locations. A FedEx spokesperson called the conversations 'normal course of business' for the company. A deal never materialized. The recent partnership also comes as Amazon furthers its rural delivery push, investing another $4 billion into its network. The investment is geared to expand the network's rural footprint to over 200 local last-mile distribution centers and is estimated to create over 100,000 delivery and warehousing jobs. Upon scaling the network, delivery time are expected to be cut in half on average. When the expansion is complete in 2026, Amazon said it will triple its rural network, enabling the delivery of over 1 billion more packages per year to customers in more than 13,000 zip codes spanning 1.2 million square miles. According to supply chain consulting firm MWPVL International, Amazon's U.S. delivery network has 1,445 active facilities and 164 future facilities as of the 2025 first quarter. Of the facilities set to be built, 104 are the local last-mile distribution centers that the company refers to as 'delivery stations.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-01-2025
- Business
- Yahoo
AMZ Prep Launches Temperature-Controlled Facilities to Enable Year-Round Amazon ‘Prime-like' 2-day Shipping
Strategic expansion addresses critical temperature-control needs for beauty, health, and consumer goods brands while solving Amazon's meltable inventory restrictions TORONTO, Jan. 27, 2025 (GLOBE NEWSWIRE) -- AMZ Prep ( the leading global fulfillment partner for Amazon sellers and DTC brands, today announced the launch of three state-of-the-art temperature-controlled fulfillment centers, spanning over 210,000 square feet, in Toronto, ON; Dothan, AL; and Salt Lake City, UT. This expansion enables brands to maintain Amazon Prime eligibility year-round through Seller Fulfilled Prime (SFP) capabilities, while also supporting temperature-sensitive DTC and B2B fulfillment operations. The new facilities feature advanced cold-chain infrastructure, including frozen capabilities at the Birmingham location, designed to accommodate various temperature requirements for beauty, health, and consumer goods products. This strategic investment allows brands to overcome Amazon's meltable inventory restrictions, which can result in up to 70% revenue loss during summer months due to Prime badge suspension. "Our brands' needs are constantly evolving, and we've identified two critical challenges in the market," said Blair Forrest, founder of AMZ Prep. "First, brands in health, beauty, and consumer goods sectors face increasing complexity as their catalogs expand to include temperature-sensitive products. Most warehouses lack the proper food and health registrations, legal approvals, and specialized cold-chain expertise to maintain specific temperatures both in storage and during 2-day shipping to customers. Second, brands face significant revenue impact from Amazon's meltable inventory restrictions during summer months, which affect products like chocolates, probiotics, and protein bars. Our new facilities directly address these challenges, allowing brands to maintain their Prime badge year-round through our SFP capabilities while ensuring products stay within required temperature ranges from warehouse to doorstep." As the largest Amazon fulfillment partner globally, AMZ Prep's temperature-controlled expansion complements its existing network of 50+ facilities across the USA, Canada, Australia, and Europe. The new facilities offer: Temperature-controlled storage and shipping for products requiring specific climate conditions Seller Fulfilled Prime capabilities for year-round Prime badge eligibility Cold chain 2-day delivery services across North America Full-service FBA Prep operations with temperature control DTC fulfillment and B2B retail distribution for major retailers, including Costco, Sephora, and Nordstrom Integrated inventory management across temperature-controlled and ambient storage Real-time temperature monitoring and compliance reporting The facilities are now operational and accepting new brand partners seeking temperature-controlled fulfillment solutions. About AMZ Prep AMZ Prep is the global leader in Amazon-focused omnichannel fulfillment and technology, powering seamless 2-day shipping experiences for high-growth brands across North America, Europe, and Australia. Managing over $3 billion in annual commerce, AMZ Prep combines deep Amazon expertise with advanced fulfillment capabilities including temperature-controlled, FBA Prep, DTC, and B2B distribution. AMZ Prep's proprietary technology platform enables real-time inventory management, automated FBA prep, and seamless multi-channel order routing, helping brands reduce costs while maximizing sales across all channels. Leading brands like Supergoop!, JBL, Duracell, Eight Sleep, Joe Boxer, Unilever, and other category leaders trust AMZ Prep to optimize their fulfillment operations. With major offices in Atlanta, New York, Toronto, and London, plus 50+ fulfillment locations globally, AMZ Prep delivers enterprise-grade logistics solutions backed by the largest team of Amazon specialists in the industry. AMZ Prep is backed by premier investment firms and continues to expand its global footprint to serve brands with unmatched scale and expertise. Company: AMZ Prep Name: Arishekar N Ph. No.: +1 (647) 370 7416 Email: Marketing@ pr@ press@ Disclaimer: This content is provided by the AMZ Prep. The statements, views, and opinions expressed in this column are solely those of the content provider. The information shared in this press release is not a solicitation for investment, nor is it intended as investment, financial, or trading advice. It is strongly recommended that you conduct thorough research and consult with a professional financial advisor before making any investment or trading decisions. Please conduct your own research and invest at your own risk. A photo accompanying this announcement is available at
