What is Amazon Premium Shipping?
The fast and efficient delivery of goods is the key ingredient in the recipe for online retail success. Compared to Amazon, few online retail companies have seen that level of success. Although there are many elements contributing to the success of Amazon, shipping is a pivotal part of it.
When the online shopping concept first started out, it took a while before most people became comfortable with it. A big part of this fear is whether or not their credit card details were safe online. Another major concern was whether shipping would be fulfilled on time and if the goods purchased will arrive to the specified address.
But these worries have been long put to bed thanks to the success and reliability of Amazon. They’ve handled your personal information with a high degree of security and gained the public’s trust over a long period of time. Shipping is so streamlined that customer confidence in online shopping has grown exponentially over the last decade. Currently, approximately 65 million shoppers have subscribed to Amazon prime.
Amazon’s commitment to constantly improve shipping has gone a long way in redefining the online retail customer experience. That commitment has seen Amazon register some impressive growth figures. For instance, Amazon prime subscriptions in 2017 stood at 85 million and that number is set to increase as online shopping trends continue to grow.
All signs suggests that customers are more than willing to pay more for better efficiency and speed of shipping. At ASDAL, we’re here to help you out with Amazon data automation and consumer reporting. To understand your data, you need to understand the platform first. Here’s our guide to Amazon premium shipping.
Amazon premium shipping
Amazon premium shipping is the fast track shipping option for online customers. Before we delve into what it entails, let’s go over how Amazon perfected their shipping process for efficiency and value.
Amazon has perfected the art of shipping
Since Amazon’s inception about 25 years ago, it has steadily grown to become the world’s leading e-commerce platform. The brand’s ability to streamline effective, traceable shipping in the U.S. as well as the world over is a key factor in its enormous success. It’s mind boggling to think that on any given month, approximately 197 million people visit Amazon to browse and buy products.
Their prowess in shipping is an element that has paid massive dividends over the years. Just in 2017 alone, Amazon shipped more than five billion items worldwide through Amazon prime.
Amazon has become such an authority bench mark in online shopping because of those people that find a product on a competitor site, about 90% will head back to Amazon to search for the same product. The reason for that is because Amazon has established the following:
Premium shipping by Amazon
Amazon allows shoppers to choose how quickly they would like to receive their orders. In the recent past, Amazon has had a shipping menu of three shipping options to choose from.
1. Standard shipping
Amazon’s basic shipping option is Standard Shipping, which typically takes 4-5 days if you’re in the United States. This option is available to all Amazon shoppers, including Prime members.
If a shopper does not need a product right away, it makes sense to opt for the standard shipping option because it is cheaper. Prime members can choose that shipping option because they get a $1 credit to use on other orders.
As long as you’re not in a rush, the standard option still benefits both the buyer and the seller. The customer saves a bit of cash and Amazon reduces priority pressure on premium shipping orders.
2. Expedited Shipping
This shipping option has been scrapped from the menu since 4th March of 2019. When a customer opted for this shipping option, it meant that they could expect their order to be delivered within one to three days.
Although it meant that a customer would have to pay a few extra dollars for the service a good number of customers liked that shipping option because it guaranteed expediency.
So, why would Amazon want to retire that service and what is its replacement? That brings in the third option: Premium shipping.
3. Amazon premium shipping
Amazon clearly hit the jackpot offering fast track shipping for those who want to receive their orders within the shortest time possible. This option gives Amazon a chance to build longer-term customer relationships while offering more perks to customers. The popularity and obvious need of fast track shipping is evident through the soaring subscription numbers of Amazon’s premium shipping on Amazon Prime.
When a customer chooses the premium shipping option, they can choose from these options: same day, one day and two day delivery options.
Admittedly, it is deeply gratifying to know that one can purchase an item online and have it delivered on the same or in two days maximum. That is the sort of convenience that has taken online shoppers in the U.S. by storm.
Amazon opted to retire the expedited shipping for good reason. There was an extensive overlap of order delivery dates across the three options. The best solution was to scrap the expedited option while maintaining premium shipping as the fast track delivery option.
Again, this is a win-win because it ensures smoother operations from Amazon’s end while still providing shipping options that are suitable to customer needs.
How Does Amazon Premium Shipping Work?
Premium shipping is part of Amazon’s enduring quest to provide an ever improving customer experience. Part of Amazon’s success in shipping has been its streamlined model and infrastructure. For that infrastructure to work, it relies heavily on qualified and trained outsourced delivery vendors.
Amazon regulates delivery consistency and standards on stringent standard operating procedures that their premium shipping vendors must fulfill. This allows them to maintain a robust shipping network with very high standards.
For a vendor to qualify for Amazon premium deliveries, they must fulfill the following:
- On time delivery rate of at least 97% or above
- Less than 0.5% seller initiated cancel rate
- Tracking rate of 100%
Only those vendors who meet the set threshold in all of the above categories are eligible to become part of Amazon premium shipping. Speedy delivery as well as tracked shipping guarantees better communication between Amazon and the customer. Amazon can tell customers when to expect their shipment with a high level of precision.
Through the Amazon app, eligibility for offering premium shipping by vendors is an ongoing process. Based on a vendor maintaining all the above mentioned standards, they can continue to avail the service to Amazon shoppers.
However, a drop in any of the set standards will automatically lead to revocation of eligibility from premium shipping. If revoked, it means premium shipping options will be disabled from the vendor. Their status will reflect as ‘not eligible for premium shipping’ on the premium shipping eligibility dashboard. In such a case, a vendor can request for premium shipping restoration by submitting a plan of action.
Vendors need to make a point to observe the order cut off times for premium shipping options, which should be set at or after 14:00hrs local time.
Who is eligible for Amazon premium shipping
Premium shipping offers three delivery options, which includes same day deliveries for residential addresses in select locations. However, same day deliveries may not be possible during high volume shopping days such as Christmas, New Year and Thanksgiving. Amazon has varied same day delivery prices.
Anyone within select cities is eligible for same day delivery service. Amazon Prime members enjoy free same day shipping on qualifying orders and $5.99 per other items that do not qualify for free shipping.
One day shipping is available to anyone within select cities. Amazon Prime members enjoy this service for free on qualifying orders.
Two day shipping is free for Amazon Prime members in any location that Prime is available.
The need for speedy delivery is the piece online shopping was missing for decades. By addressing obvious problems of logistical challenges as well as overall cost of shipping, Amazon has manufactured a win-win situation for both the brand and the consumer.
Amazon standard shipping is an excellent option for those in no rush, but it’s great to have the premium shipping which ensures those who want their products faster can get them sooner without breaking the bank. Get started with ASDAL to operate on Amazon with superior business intelligence.