From SCDigest's On-Target E-Magazine
- June 16, 2015 -
Supply Chain News: Amidst More Free Shipping Programs, Amazon Tries to Offset the Costs - with Advertising
Free Shipping for Small, Lights and Same Day with Prime; Plugging the Minions Movie on Cartons
SCDigest Editorial Staff
Despite having a very hard time making any profits, Amazon.com continues to expand its free shipping programs. We guess it's on a "we'll make it up in volume" theory.
SCDigest Says: |
 |
| In case you didn't pick up on it, the operative word in all this is free, causing more troubles for Amazon competitors. |
|
What Do You Say?
|
|
|
|
A couple of weeks ago, Amazon announced a new program in which items that less than eight ounces and cost less than $10 will receive standard shipping for free.
That free shipping offer is available to everyone, not just Amazon Prime members, who get free two-day shipping for an annual fee of $99. And Amazon already offers free standard shipping for orders great than $35.00
The new program is officially called "Fulfillment by Amazon Small and Light."
"The new program provides a cost effective way for sellers to offer low-cost items and for customers to get free shipping. It's a win-win for customers and sellers - the new program costs sellers less to ship an item than it would if they were to do it through their own fulfillment network," said Amazon spokesman Tom Cook.
Deliveries will come from a specially-stocked Amazon shipping center based in Florence, Kentucky. Items will take four to eight business days to arrive.
Most of the inventory will come from hundreds of third-party merchants that give Amazon fees sale for 3PL services such as storage, packaging, delivery and customer service.
Meanwhile, Amazon is now offer free same day shipping to Prime customers in select markets. Before, same day delivery was $5.99. Same-day delivery is already available in 12 metro areas and will soon expand to the San Diego and Tampa Bay areas as well.
In case you didn't pick up on it, the operative word in all this is free, causing more troubles for Amazon competitors.
New Source of Revenue to Offset those Costs?
In the face of all that fee shipping, Amazon has found a new and as usual very innovative way to reduce net shipping costs - put advertisements on the shipping cartons.
(Distribution/Materials Handling Story Continues Below
)
|
Yes, that's right, as you see in the image nearby, Amazon of late has been using special shipping cartons colored bright yellow and featuring characters from the movie Minions, as a new way to promote the film before its release in July. 
