I was looking at my FBA (Fulfillment by Amazon) stats over the weekend and was simply amazed at what I saw. So I thought I would share it with you.
In January, FBA shipped 796 orders for me.
- Amazon Prime Customers- Made up 20% (157) of those orders.
- Super-Saver Shipping - Made up 53% (423) of those orders
- Regular Shipping - Made up 27% (216) of those orders.
Regular, merchant fulfilled, items are not eligible for Prime or Super-saver shipping, so 73% of the orders shipped in January were shipped to customers that would not have bought from me if I shipped my own product.
So far in February (through 2-15) FBA has shipped 765 of my orders and the percentages are basically the same as in January.
Why do I even mention these numbers? Because, if you are not listing and selling using FBA, you are missing out on a huge number of Amazon buyers, who want free shipping (I still sold 27% of my orders to customers who paid for S&H as well).
Here is how my items look in search: (Click on the image for a bigger picture)
My item (user id: inetmediasource) is the top listing in search and is more expensive than the item directly below me -- that is because FBA listings do not include a S&H amount. On Amazon listings sort by lowest Total Price, so as long as my price is lower than the lowest Total Price, I will show-up first in the list.
If a customer wants my item, they will get free Super -Saver shipping because the price is greater than $25. If it was under $25 they could combine it with another item to qualify for free Super-Saver shipping.
Prime customers, pay $79 per year for free 2-day shipping on all of their Amazon orders but merchant fulfilled items do not qualify. According to Amazon: "Prime members buy more items, shop more often, and spend more than the average Amazon.com customer. As the program continues to grow, it will become an increasingly meaningful source of competitive advantage in the online and traditional retail categories and a critical building block to Amazon’s success." (Source: Amazon Job Listing describing Prime)
Online merchants, that do not position themselves to sell to the Prime or Super-Saver customer, will be missing out on a very valuable customer segment.