All webshops beware! Changes to Amazon Prime criteria for the EU

In the ever-evolving world of e-commerce, Amazon, the global leader, is set to introduce significant changes to the Prime eligibility criteria and the Buy Box offer display across the European Union (EU) in June 2023. These changes will revolutionise the way Amazon merchants operate, as the criteria for the coveted Prime badge and its eligibility will undergo a transformation. This article, brought to you by Monta, your enthusiastic and innovative e-commerce fulfilment partner, aims to provide a comprehensive overview of these changes and their implications for merchants.

The key Amazon Prime changes include:

  • Equal evaluation of fulfilment channels: All fulfilment channels, including Fulfilled by Amazon (FBA) and Seller Fulfilled Prime (SFP), will be evaluated on an equal basis.
  • Data protection measures: Amazon will comply with data protection regulations and will not use private seller data for marketing purposes.
  • Non-discriminatory Buy Box standards: Amazon will implement non-discriminatory standards for marketplace merchants, ensuring fair competition.
  • Carrier selection for Prime sellers: Amazon will require non-discriminatory carrier selection for sellers participating in the Prime program.
  • New criteria for Prime eligibility: Sellers must meet specific requirements to be eligible for Prime, including nationwide availability, free shipping and free returns for Prime members.
  • Delivery and performance requirements: Sellers must adhere to specific delivery and performance requirements for each product category.
  • Minimising cancellations for prime orders: Sellers initiating cancellations for Prime orders must keep the cancellation rate below 0.5%.
  • Flexibility for FBM sellers: Fulfilment by Merchant (FBM) sellers will have the flexibility to work with alternative logistics providers and negotiate terms directly.

While these changes offer numerous benefits to merchants, small and medium-sized enterprises (SMEs) may face challenges with regard to delivery costs and logistics. However, partnering with an experienced 3PL company, such as Monta, can help SMEs overcome these hurdles.

All webshops beware! Changes to Amazon Prime criteria for the EU

Levelling the playing field: Equal evaluation of fulfilment channels

In the past, merchants using the Fulfilled by Amazon (FBA) and Seller Fulfilled Prime (SFP) fulfilment channels enjoyed distinct advantages. However, starting from June 2023, all fulfilment channels will be evaluated on an equal basis. This change ensures fairness and allows merchants to compete based on the quality of their products and services, rather than the fulfilment method employed. This is a huge step towards creating a more balanced and fair marketplace.

Securing data: Enhanced protection measures

In line with data protection regulations, Amazon is now restricted from using private seller data for marketing purposes. This ensures that merchants’ confidential information remains safeguarded, fostering trust and transparency in the marketplace. All merchants can rest assured that their data will be handled responsibly and in accordance with privacy guidelines.

Promoting fair competition: Non-discriminatory Buy Box standards

To ensure fair competition, Amazon will now require non-discriminatory standards for marketplace merchants. When prices or shipping methods differ significantly, Amazon is obligated to present competitive offers in the Buy Box. This prevents any undue advantages for certain sellers and encourages a level playing field, benefiting both merchants and customers.

Equal opportunities: Carrier selection for Prime sellers

For sellers participating in the Prime program, Amazon now requires non-discriminatory carrier selection. This means that Prime data cannot be used to evaluate third-party carriers. The aim is to ensure that Prime sellers have equal access to carrier options, eliminating any bias and promoting fair competition among logistics providers.

Raising the bar: New criteria for Prime eligibility

The updated criteria for Prime eligibility aim to elevate the quality of service provided to Prime members. To be eligible for Prime, sellers must meet specific requirements, including nationwide availability, free shipping and free returns for Prime members. These criteria emphasise the importance of efficient and customer-centric fulfilment processes.

Excellence in delivery: Performance requirements

In addition to the general Prime eligibility criteria, sellers must also adhere to specific delivery and performance requirements for each product category. These requirements encompass delivery speed, on-time delivery rate, tracking accuracy and cancellation rate. By setting these standards, Amazon aims to ensure that Prime members receive a consistently excellent shopping experience.

Maintaining customer satisfaction: Minimising cancellations for Prime orders

To maintain a high level of customer satisfaction, sellers initiating cancellations for Prime orders must keep the cancellation rate below 0.5%. This requirement serves as an incentive for sellers to carefully manage their inventory, fulfil orders promptly and minimise cancellations. By reducing cancellations, sellers can provide a reliable and dependable experience for Prime members.

Empowering merchants: Flexibility for FBM sellers

Fulfilment by Merchant (FBM) sellers, who handle their own logistics, have the flexibility to work with alternative logistics providers and negotiate terms directly. As long as FBM sellers provide tracking information, they can leverage the services of third-party logistics (3PL) companies. This allows FBM sellers to tailor their fulfilment processes to their specific needs while meeting the requirements for Prime eligibility.

Overcoming challenges: Partnering with 3PL companies

While the changes to the Prime criteria and Buy Box standards offer merchants numerous benefits, small and medium-sized enterprises (SMEs) may face challenges in relation to delivery costs and logistics. However, partnering with an experienced 3PL company, such as Monta, can help SMEs overcome these hurdles. By leveraging local warehouses and utilising fast delivery options, SMEs can ensure Prime eligibility, access bulk pricing and facilitate their business expansion on Amazon’s platform.

Fulfilment by Merchant (FBM) sellers

Conclusion

The changes to Amazon’s Prime criteria and Buy Box offer display in June 2023 across the EU are set to level the playing field for all merchants and promote fair competition. With equal evaluation of fulfilment channels, non-discriminatory Buy Box standards and the introduction of new Prime eligibility criteria, Amazon aims to enhance the overall shopping experience for customers while ensuring merchants meet high-quality service standards. By partnering with reliable 3PL companies like Monta, SMEs can navigate fulfilment challenges, achieve Prime eligibility and unlock opportunities for business growth on Amazon’s platform.

In addition to the changes to Amazon’s Prime criteria and Buy Box offer display, sellers can also leverage the services of Monta, a comprehensive fulfilment solution provider. Monta offers a streamlined platform that integrates all online orders, allowing sellers to focus on other aspects of their business. Particularly for sellers in Germany, Monta provides fulfilment for Amazon Prime orders, meeting the stringent requirements set by Amazon. By partnering with Monta, sellers can enhance their credibility, increase their visibility on Amazon and expand their reach, ultimately driving their sales growth.

Martien Verhaar
Martien Verhaar

I keep a keen eye on the ever-changing world of fulfilment solutions, integrations and analysis. I am passionate about sharing tips and insights that can help you streamline your e-commerce operations and boost your growth. Let's navigate the complexities of online retail together and turn them into opportunities for your business success

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