Amazon Changing PRIME to 1-Day Shipping

Amazon Seller

Amazon made an interesting announcement today.  In the near future, they will begin stressing 1-day shipping for Prime members.  In order to make this happen, Amazon will stress increased inventory levels combined with discounts for sellers.

Here is the Complete Announcement from Amazon

 

Hello from Fulfillment by Amazon,

We recently announced that in the US we are in the process of evolving our Prime shipping offer—which has historically been a two-day program—to a one-day program. We did this because customers love getting their orders quickly, and we have found they order more products when there is a one-day delivery promise.

You can make the most of this new emphasis by making sure you provide enough inventory of your most popular products so that we can place it close to customers.

To help you get started, we are announcing a monthly storage fee discount so that you can supply more of your popular products. The promotion begins June 1, 2019, and will run through January 31, 2020.

To qualify for reduced fees of up to 75%, you must supply inventory within a target inventory range in a given month. See details below.

How to get the monthly storage fee discount

1. Determine your eligible FBA products
Products become eligible in either of the following ways:

Standard-size products with 60 or more units sold in the month are eligible.
OR

Before the start of each month, we will flag products in the Restock Report that are automatically eligible.

2. Maintain the target inventory range
Keep your inventory level between 4 to 8 weeks of cover on eligible products for at least 21 days in a given month to qualify for the discount each month.
OR

For products flagged as automatically eligible in the Restock Report, keep your inventory level in the range published in the Restock Report for at least 21 days in a month to qualify for the discount.
3. Get the discount

Eligible products that meet the inventory level criteria in a given month will get discounted storage fees in that month. See the table below for discounts. Earn 50% to 75% off monthly storage fees!

Monthly storage fee changes on eligible products when qualifying inventory levels are met

Month Standard-size (without target inventory) Standard-size (with target inventory)
January – September $0.69 per cubic foot $0.17 per cubic foot
October – December $2.40 per cubic foot $1.20 per cubic foot
Discounts can be earned starting with June’s storage fees (charged in July), so start planning your shipments today! Visit Target inventory monthly storage fee promotion for more details on earning the monthly storage fee discount.

Thank you.

The Fulfillment by Amazon team

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