Amazon Today Program Explained

Amazon Today is a program that enables businesses with a retail presence to showcase their in-store inventory on Amazon’s storefront, providing same-day delivery and in-store pickup of their products to millions of Amazon customers across the country. This article discusses the benefits and challenges of using Amazon Today and provides strategies to maximize its benefits.

What Amazon Today Can Do for Your Retail Business

Amazon Today allows retail businesses to showcase their in-store inventory on Amazon’s storefront. This expands their fulfillment options for items purchased on Amazon.com, allowing them to offer same-day delivery and in-store pickup. The program provides reliable same-day delivery at scale to enterprise retail partners via Amazon Flex Driver delivery partners. The program also includes built-in customer service, real-time inventory, out-of-stock buffers, and capacity management controls, allowing partners to take full advantage of their existing technology investments while adding a new sales channel to drive incremental order volume at retail stores nationwide.

How to Get Started with Amazon Today

Setting up an account with Amazon Today is a straightforward process. When you sign up, Amazon will assign a single point of contact who will work with you directly to onboard your desired stores and inventory selection. 

You will need to integrate with Amazon’s set of APIs to list your selected in-store inventory on Amazon.com and fulfill orders from your retail locations via Amazon’s delivery network. 

After quality assurance, Amazon’s launch team will work with your store operations team to incorporate Amazon’s standard operating procedures and customize individual store settings for both customer and driver pickup. 

Finally, Amazon’s launch team will create a collaborative ramp plan with you to scale the program to your retail network at a pace that fits your brand’s needs.

Benefits for Retail Businesses:

There are several benefits of using Amazon Today for businesses, including:

  • Increased visibility: Businesses can showcase their inventory on the world’s largest online marketplace, reaching millions of potential customers.
  • Faster delivery: Amazon Today promises same-day delivery or in-store pickup, making it an attractive option for customers who want their products quickly.
  • Brand recognition: Businesses can use their own branded packaging for all store orders, which can help increase brand recognition and engagement.
  • Additional revenue potential: In-store pickup can convert foot traffic into additional revenue potential when customers pick up their orders from local retail stores.
  • Seamless integration: Amazon Today includes built-in customer service, real-time inventory, out-of-stock buffers, and capacity management controls, allowing businesses to take full advantage of their existing technology investments.

Key Strategies for Leveraging Amazon Today for Maximum Results:

To get the most out of Amazon Today, businesses can adopt several strategies. One strategy is to offer discounts and promotions for same-day delivery or in-store pickup to incentivize customers to use the program. Another strategy is to offer bulk orders through Amazon Today to take advantage of the program’s competitive pricing structure. Businesses can also use data analytics to monitor inventory and pricing, allowing them to make data-driven decisions to optimize their performance on the program. Finally, businesses can use the program as a tool to increase brand awareness and engagement by using their own branded packaging.

Strategy Summary:

  • Offer discounts and promotions for same-day delivery or in-store pickup.
  • Order in bulk to take advantage of lower pricing and reduce shipping costs.
  • Optimize inventory management by monitoring and adjusting stock levels to meet demand.
  • Consider pricing strategies- ensure you are competitive while still making a profit.
  • Use data analytics to make data-driven decisions to optimize performance.
  • Provide excellent customer service to ensure customer satisfaction and build brand loyalty.

Pros and Cons of Using Amazon Today for Businesses

Pros: Summarizing the Benefits

  • Increased Sales: Retail businesses can offer same-day delivery or in-store pickup options for their customers, which can increase sales and drive revenue.
  • Increased Visibility: By listing their in-store inventory on Amazon’s storefront, businesses can reach millions of customers and increase their visibility and brand recognition.
  • Improved Customer Experience: The program’s built-in customer service and real-time inventory updates can improve the customer experience and increase customer satisfaction.
  • Scalability: The program’s scalability allows businesses to expand their fulfillment options and reach more customers without significant investments in infrastructure or technology.

Cons: Common Challenges

  • Inventory Management: One of the main challenges when utilizing Amazon Today is managing inventory to ensure that products are readily available for fast and efficient delivery. To overcome this challenge, businesses should carefully monitor their inventory levels and adjust their stock levels to meet demand.
  • Profit Margins: Amazon Today’s competitive pricing structure can make it difficult for businesses to turn a profit, especially for smaller businesses. To overcome this challenge, businesses should carefully consider their pricing strategies and aim to strike a balance between competitiveness and profitability.
  • Technical Integration: Businesses must integrate their technology and systems with Amazon Today. While “seamless integration” is advertised as a benefit of the program, this can be time-consuming and require technical expertise.
  • Dependency on Amazon: Businesses using Amazon Today become dependent on Amazon’s delivery network and technology, which can be a risk if Amazon changes its policies or pricing structure. Additionally, the delivery network is limited to certain geographic areas, which may limit the reach of businesses.

Overall, while there are some potential challenges to using Amazon Today, the benefits of increased sales, visibility, and improved customer experience make it a compelling option for retail businesses looking to expand their fulfillment options and reach more customers.

Here you can review the full conditions and requirements:

AMAZON TODAY STANDARDS AND REQUIREMENTS

Delivery Fee.  As of the date this Amazon Standards and Requirements is published, the Delivery Fee shall be 6.99 USD for each order of Delivery Products. We may change the Delivery Fee from time to time by updating these Amazon Today Standards and Requirements.

Receipt of Units. Our confirming that an Amazon Courier has picked up a Unit from the Pickup Location does not mean that the Unit has been received by us without loss or damage, or that any loss or damage to any Unit later discovered occurred after we confirmed receipt. If there is a loss of or damage to any Units while in the possession of an Amazon Courier, unless we issue a customer refund or determine that the loss or damage was caused by you or any of your employees, agents, contractors or personnel we will, as your only remedy, pay you the Purchase Price of the Unit less any Fees that are applicable to the Unit (“Reimbursement Amount”) for the lost or damaged Units and you will, at our request, provide us a valid tax invoice for the Reimbursement Amount paid to you. If we pay you the Reimbursement Amount of a Unit we may dispose of the Unit. Payment of the Reimbursement Amount is the total liability that we or our agents, service providers, or representatives may have, and your only right or remedy for lost or damaged Units. At all other times, you will be solely responsible for any loss of or damage to any Units. 

Reverse Logistics. We may return Units to you for any reason and these returned Units will be delivered to your designated returns address or at any of your participating physical stores.  We will make a commercially reasonable effort to return the Unit. If (a) we have an outdated or incorrect address, (b) Your Amazon Today Products are topical or ingestible, (c) we reasonably determine that Your Amazon Today Products are uneconomic to return, or (d) we are otherwise unable to return the Units to you, then we may choose to dispose of the Units in the manner we prefer. Title to each disposed Unit will transfer to us at no cost to us and we will retain any proceeds received from the disposal of any Unit. 
Unsuitable Units. You will not provide to an Amazon Courier, and we or the Amazon Courier may refuse to accept, any Unsuitable Unit. “Unsuitable Unit” means a Unit: (a) that is defective, damaged, or lacking required label(s); (b) for which the Required Product Information was not properly registered with Amazon before shipment or does not match the product; (c) that is an Excluded Product or otherwise does not comply with the Agreement (including applicable Program Materials); (d) that Amazon determines is unsellable or unfulfillable; or (e) that Amazon determines is otherwise unsuitable.

Customer Support. We will provide first-level customer service for all orders of Your Amazon Today Products for fulfillment through the Amazon Today Program, and you will cooperate with us to develop processes for the hand-off of customer-service issues to you, if necessary. We may resolve all customer service issues, including those relating to packaging, handling and shipment and customer refunds, adjustments, and other concessions related to such orders. We may determine whether a customer will receive a refund, adjustment, or other concession for any order, and require you to reimburse us for any reasonable related costs or expenses where we reasonably determine you have responsibility for the same (including with respect to any refunded state and local sales tax amounts).

Customer Returns and Refunds. You will accept customer returns of Your Amazon Today Products at any of your participating physical stores and at your preferred mailing address according to the established processes and procedures identified by Amazon. If a customer promise is not met for a particular Unit (for example, due to a missing, lost, incorrect, damaged, or expired Unit or the failure to deliver a Unit to a customer within the applicable delivery window), and we determine that the failure to meet the customer promise is caused by us or any of our employees, agents or contractors, we will, as your only remedy, process a refund to the customer without requiring you to reimburse us.  In such cases we will be entitled to retain the applicable Fees payable to us. In all other circumstances where a customer promise is not met, you will be responsible for the amount of any customer refund and all associated costs and will reimburse us for any costs incurred by us in connection with the same.

Returned Units. If we provide a refund to a customer as described in this document and that customer returns the original Unit to us, we will be entitled to dispose of the Unit or, if it is a Unit that is not an Unsuitable Unit, we may, at our option, return such Unit to you. If we return such Unit to you, you will reimburse us for the price of the item on the original order of the returned Unit.

Product Information, and Participating Store Information. In addition to your obligations under Section S-1 of the BSA, in order to participate in the Amazon Today Program, for each of Your Amazon Today Products, you must submit to Amazon, through a designated application program interface (“Designated API”) or such other means we authorize in the Program Materials, information required by Amazon that accurately reflects the offers in each of your participating physical stores for their respective Amazon Today Products. Use of the Designated API is governed by the Selling Partner API Terms of the BSA and the Developer Agreement. All Your Amazon Today Product inventory you submit to Amazon must be available in the physical stores you indicate and on the Amazon Site or Amazon Associated Properties; you are responsible for setting stock buffers to limit available units for purchase on the Amazon Site and Amazon Associated Properties. You will provide accurate and complete Required Product Information for each of Your Amazon Today Products and information about your participating stores as specified the Program Materials, and promptly update that information as necessary to ensure it at all times remains accurate and complete. 

Picking and Packing. You will, in accordance with the Program Materials, pick and pack units of Your Amazon Today Products (“Units”) in the quantities included in the applicable Order Information, and stage them at the appropriate Pickup Location to be picked up by (a) a customer, as facilitated by your store associate; or (b) Amazon Couriers. “Pickup Location” means a location where you stage individual customer orders for pickup by a customer through a store associate, or by an Amazon Courier. The initial Pickup Location is a loading area within or around your applicable retail location, as designated by us.  We may designate new Pickup Locations from time to time. For each order, you will follow the customer pick-up process defined in the Program Materials and notify us when that pickup is complete through the Designated API or such other means as we authorize in the Program Materials.

Performance Standards.  In addition to any standards that may be set forth elsewhere in the Agreement, Program Materials, or Program Policies, you and each of your participating store locations must (a) maintain a Pre-Fulfillment Cancellation Rate of less than 0.5%; (b) a Pickup Readiness Rate of 99.0%; and (c) keep up-to-date and accurate store-level data, including hours of operation and sellable inventory for Your Amazon Today Products.   The performance standards described in (a) and (b) above are measured on a monthly basis, and enforcement will begin on the third calendar month after the launch of each store. Meeting these performance standards are a requirement for your continued participation in the Amazon Today Program at each of your locations. “Pickup Readiness Rate” is defined as the percentage of orders successfully picked, packed, and staged within 60 minutes of the order notification being sent from Amazon’s systems to your order management system, excluding orders that were cancelled prior to a shipping label being generated. “Pre-Fulfillment Cancellation Rate” is defined as the number of orders cancelled prior to being fulfilled divided by the total number of orders sent to your order management system.  The number of orders cancelled for the purpose of determining this performance standard does not include those cancelled by the customer or Amazon unless due to your failure to timely fulfill the order.  
 
Effective January 15, 2023

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