We Know Amazon

The Truth About Amazon Prime


July 22, 2019

From a boathouse pitch to a hundred-million-subscriber phenomenon, Amazon Prime has changed the world of e-commerce and provided vast gains for online sellers. During the Prime Day 2018 sale, shoppers spent over $4 billion, with over $1 billion purchased from small- and medium-sized businesses (SMBs) in the first 24 hours alone. This massive moment for Prime members enormously exceeded expectations and showed to the clear benefits of Amazon Prime.

But what does Prime mean for SMBs? The truth about Prime is that not all good things are as they seem. The prospect of high sales all but necessitates the $39.99/month Professional Selling Plan to avoid the per-item fee, and nearly all Prime-eligible products require being FBA (Fulfilled by Amazon), which despite its many advantages also comes with many costs. The expenses one faces when selling on Prime include storage fees, fulfillment fees, and referral fees that the seller must bear so the buyer can enjoy the benefits of Prime.

There is a way around FBA: Seller-Fulfilled Prime. This small community has strict rules for entry as well as a long waiting list, but acceptance into Seller-Fulfilled Prime does allow for, among other things, Prime two-day delivery, which can make Prime subscribers more likely to become repeat customers. But this does not guarantee control of the Buy Box, nor does it promise front-page search results. Regardless of how wonderful Prime is for online shoppers, it does nothing for SMBs when it comes to ad management, search engine optimization, and inventory management, not to mention revenue recovery or fighting unauthorized resellers and counterfeiters. Prime may increase product sales, but that is no guarantee of increased company revenue.

The truth about Prime is that it is not necessarily wonderful for SMBs. The true benefits of selling Prime-eligible goods only appear with careful, constant attention from experts like those at Knoza who know the ins and outs of Amazon and are able to maximize a company’s potential on the site. Knoza’s services include vigilant ACOS administration; creation of data-driven content optimized to be keyword-rich and aesthetically pleasing; careful guarding of a brand through programs like Amazon’s Project Zero; quick and efficient case management for problems caused either by Amazon glitches or by previous user error; inventory management; and reimbursement management to recover all return revenue to which Amazon credits your account. Without Knoza, Amazon Prime is a double-edged sword for SMBs. With Knoza, the benefits far outweigh the costs. The truth about Prime is out there; work with Knoza so that more than members can enjoy it.