Each year, Amazon Prime Day is one of the most popular shopping events on the eCommerce calendar. Sellers create a plan to offer the biggest discounts of the year to their customers and hope to reap the benefits of this sale. Unfortunately, sales don't always go as planned. Thousands of people flock to Amazon during Prime Days and put a heavy strain on sellers to meet their demands. As a result, not all “Prime” orders are actually fulfilled and delivered on time and online sellers end up losing money and - even worse - customers. With the peak season just around the corner, you don’t want to make the same business mistake twice.
Below are the most common issues eCommerce companies experience when using Fulfillment by Amazon (FBA).
Dependency on Prime Memberships
Anyone searching Amazon will discover your exclusive sale; however, only Prime members are able to participate. That means your audience is narrowed and limited by their subscription. Despite the obstacles, customers who are interested in your deal can always opt-in to Prime, but have to take several extra steps just to make a purchase. Users can either sign up for a 30-day trial at no cost or enroll in a full-year subscription that costs up to $119! Considering that these customers don’t use Amazon or Prime services often, requiring customers to enroll may not increase sales.
Late Fulfillment and Delivery
Prime is built on the promise that all orders will be delivered in 1 - 2 days, but sometimes challenges arise. Millions of people globally are shopping for the same thing at the same time during Prime Day and the peak season. In 2020 alone, there were 2 million items listed each day. You can imagine how difficult it can be to keep track of every order and ensure no mistakes occur in the warehouse. Additionally, carrier shipping delays can also cause unexpected issues. Depending on your customers’ location and how many items you have in stock at a warehouse, your shoppers may experience delays or potentially incorrect orders altogether.
Competitors Prime Day Deals
You won’t be the only one banking on Prime-level sales this year. All of your competitors that don’t sell on Amazon will be running deals of their own. They may also be using a shipping partner with a network of fulfillment centers that have a better grasp on shipping and fulfilling orders. Even retail giants like Walmart and Target will be running sales at the same time. The best way to combat the competition is to have multiple options. For example, if your customer lives on the west coast but your inventory is stored in an east coast Amazon warehouse, you could end up paying more for a longer delivery time. It’s much more cost-effective to spread your merchandise out to multiple fulfillment centers that are closer to your customers. Not only will you be able to deliver faster, but you can also ship at a lower cost and get the upper hand on competitors in the same market.
Prime Day 2021 has come and gone, and sellers are feeling the effects of Prime Day’s chaos. As the peak season approaches, time is of the essence to improve your shipping and fulfillment strategy. As an Amazon seller, you don’t have to put all of your eggs in one basket. Third-party logistics companies like Rakuten Super Logistics can help you eliminate Prime Day woes and streamline your online orders. Through the SmartFill plugin, you can seamlessly integrate your merchant account and quickly start automating shipping and fulfillment for your customers’ purchases.
Get started with our Amazon eCommerce tools and improve your online business in time for the peak season rush.
Rakuten Super Logistics (RSL) is the leader in eCommerce order fulfillment services and freight brokerage. RSL offers national fulfillment services and a network of fulfillment centers across the US, including Anaheim (CA), Atlanta (GA), Austin (TX), Carlstadt (NJ) Chicago (IL), Denver (CO), Houston (TX), Las Vegas (NV), Olean (NY), Reno (NV), Salt Lake City (UT), and Scranton (PA). Their state-of-the-art technology allows for integration with popular shopping cart platforms and online marketplaces including Amazon, Big Commerce, Channel Advisor, eBay, Magento, ShipStation, Shopify, Volusion, Walmart Marketplace, and WooCommerce.