An Amazon worker delivers packages amid outbreak of coronavirus (COVID-19) in Denver, Colorado, USA, April 22, 2020.
Kevin Mohatt | Reuters
Amazon is relieving some of the pressure on third-party sellers packing and shipping their own orders due to ongoing restrictions on the major shipping companies.
Last August, the company announced that members of Amazon’s Seller Fulfilled Prime (SFP) program, from February 2021, are expected to make deliveries on Saturdays and reach one- and two-day delivery targets.
In a letter sent to sellers on Tuesday and viewed by CNBC, Amazon said it was temporarily easing delivery speed targets for SFP members in response to a “restriction on the logistics industry” generated by pandemics. This means that Amazon SFP members will give a pass if they cannot guarantee one- and two-day delivery speeds for some of the buyers.
“While we know that sellers like you are raising the bar for Prime customers, we also understand that the pandemic has introduced restrictions in the logistics industry on which you depend to meet customer expectations,” according to the note. “In recognition of these limitations, we are adjusting the one- and two-day delivery speed targets.”
An Amazon spokesman confirmed to CNBC that the changes were announced to sellers on Tuesday.
Launched in 2016, the SFP program enables third-party merchants to be eligible for two-day shipping and display the popular Prime badge on their listings without using Amazon’s Fulfillment By Amazon’s fulfillment services. to pay.
With SFP, vendors store their own products and pack their own orders, while delivery is managed by providers such as the USPS, FedEx or UPS. Major carriers have experienced unprecedented strain on their systems during the coronavirus pandemic and the holiday shopping season due to increased e-commerce activity.
In addition, UPS and FedEx are likely to experience even stricter capacity constraints in the coming months, as they prioritize the shipment of millions of doses of coronavirus vaccine.
Amazon measures the ability of an SFP member to achieve one- and two-day delivery targets, based on how often these delivery options are shown to customers when they see a seller’s product list. Due to the update on Tuesday, SFP members will only guarantee delivery within two days or less within 55 days of the persons viewing their product entry.
From June, SFP members will have to show delivery speeds of two days or less for 70% of the people who see their product list. Sellers will still be expected to support delivery and deliveries on Saturday or Sunday, as well as to deliver nationwide delivery coverage from February 1st.
Amazon announced the change last summer to give sellers enough time to prepare and communicate, the company said at the time. The move has drawn criticism from some third-party sellers who say it could hamper their operations if they have to work on weekends.
Sellers who execute on their own orders have struggled to reach Amazon’s two-day delivery targets, even before the coronavirus pandemic. Less than 16% of U.S. SFP orders were delivered within two days, mainly because sellers do not work on weekends, Amazon said last August.