Amazon Cuts Delivery Times in Threat to Alibaba, EBay, Wish.com
- Small items commonly shipped from China now Prime eligible
- Amazon looks to beat rival marketplaces on speed of delivery
The Seattle-based company notified merchants Wednesday that such items would now be delivered to Amazon Prime members within five business days, down from eight previously, according to an e-mail obtained by Bloomberg. That makes Amazon delivery of small, inexpensive items from China, for example, much faster than the two weeks to 30 days it can take using marketplaces owned by Alibaba Group Holding Ltd., EBay Inc. and Wish.com.
Amazon wants quick delivery, which has helped it dominate online shopping in the U.S., to further differentiate itself from competitors in cross-border e-commerce. U.S. online shoppers will spend about $30 billion this year on cross-border transactions, a 10 percent increase from 2015, with China the leading source of goods purchased, according to a February report by EMarketer. An Amazon spokesman declined to comment on the delivery changes.
“I expect the small and light program to explode in volume,” said Neil Ackerman, a former Amazon executive who started the program and now heads e-commerce initiatives at Mondelez International. “Wish.com and other marketplaces won’t be able to compete with Amazon when it comes to speed or customer service.”
Amazon continues to refine the small and light delivery system to blunt competition from rival marketplaces that help Chinese merchants ship directly to U.S. shoppers through the ePacket program. EPacket is an agreement between the U.S. Postal Service and China Post that provides Chinese merchants cheap access to U.S. shoppers on small packages weighing as much as 4.4 pounds (1.7 kilograms).