Photo by appshunter.io on Unsplash
December 3, 2024
Should Steve Madden Be Adding a Buy With Prime Button?
Steve Madden has become the latest brand to add a Buy with Prime button to its website.
Amazon Prime members shopping on SteveMadden.com gain Prime’s promise of fast and free delivery, easy returns, 24/7 shopper support, and a convenient checkout experience.
“We’ve always believed in moving fast, and there’s no better partner than Amazon for that,” said Steve Madden, founder, creative & design chief, in a statement. “Plus, stepping over their boxes every day on my way to the kitchen made it clear that it was time to team up and make it official.”
Under the setup, Prime members can click on the Buy with Prime button on the product page of an eligible item on SteveMadden.com. Customers using Buy with Prime for the first time must first log in and verify their Amazon account information. They are then sent to the brand’s checkout page, which has been automatically populated with their preferred delivery address and default payment method from their Amazon account.
Once the purchase is made, Amazon handles the order delivery. Post-purchase, Prime members can view, manage, and track their Buy with Prime orders from their order confirmation email or in their Amazon account.
One downside is items eligible for Buy with Prime are limited to the styles held in Amazon’s warehouses, although more selections are being added in the coming weeks.
Buy with Prime launched in April 2022 as a way to extend the benefits of Prime to sellers “beyond Amazon,” with some seeing the launch as a response to Shopify’s success.
Though the offering was initially only available on an invitation-only basis for third-party retailers using the Fulfillment by Amazon (FBA) hosted logistics service, the e-tailer made the service available to all U.S.-based merchants in early 2023 and invested in new features, including allowing ratings and reviews from Amazon customers to be displayed on third-party websites using the service for no additional cost.
A big breakthrough came in September 2023 when Shopify agreed to integrate Amazon’s Buy with Prime service into its app ecosystem following integration with BigCommerce. Amazon has since added cart functionality for customers, 24/7 post-order customer service support, and integration with TikTok ads.
Amazon in September said the service was driving an average 16% increase in revenue per shopper for merchants offering Buy with Prime.
“Imagine if every shoe aficionado was able to use Prime fast, free delivery while ordering the season’s latest treads from their favorite brand,” said Peter Larsen, vice president of Buy with Prime and Amazon Multi-Channel Fulfillment, in the Steve Madden release. “That’s what we’re introducing with Buy with Prime launching on SteveMadden.com. Prime members can now use the shopping benefits they know and love to get the latest Steve Madden styles quick and easy.”
A Business Insider article from June 2024 citing Amazon’s internal emails indicated that the rollout of Buy with Prime was underperforming expectations due to fees, friction for consumers, and concerns about collaborating with Amazon.
Amazon also hasn’t secured any larger retailers with the service likely due to similar concerns that keep many from establishing a storefront to sell directly on the Amazon platform. EMarketer reported last year, “Larger retailers are likely wary of sharing too much information with Amazon, while fulfillment and seller fees can quickly eat into profits.”
Discussion Questions
Do you see more benefits than risks for Steve Madden in adding a Buy with Prime button to its website?
Should larger brands and retailers consider adding Buy with Prime?
Poll
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Mohamed Amer, PhD
CEO & Strategic Board Advisor, Strategy Doctor
Georganne Bender
Principal, KIZER & BENDER Speaking
Neil Saunders
Managing Director, GlobalData
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Adding Buy with Prime functionality makes life easier for customers. It also means Steve Madden has one of the best logistics partners in the business, which will drive speed and efficiency at a level that Steve Madden itself couldn’t manage without massive investment. All of this should drive sales and satisfaction. The downside is the argument that partnering with Amazon is dangerous. There is some merit in this, I guess, but it seems rather a tired argument in a world where retail partnerships are more common and Amazon works with an enormous number of retailers and brands.
Should Steve Madden add a Buy with Prime button? Absolutely. Anything that makes it easier for a customer to place an order, and easier for a retailer to fulfill that order, is a good thing.
The website’s announcement says, “Your Prime membership allows for a seamless shopping experience, ensuring that you can express your unique style effortlessly.” and “Experience the ease of shopping today with your Prime account and stepping into a world of effortless style!”
I think the verbiage says it all, and I fully anticipate that many other brands will follow suit because it makes great sense for everybody.
Steve Madden’s brand is a destination for on-trend shoppers seeking to express their individuality through trendy footwear. The brand is all about trendy fashion and innovative products, not logistical excellence and speedy delivery. Steve Madden handles the emotional connections through the designs, not the supply chain and product flow. Enter Amazon and the Buy with Prime button to bring the best of both worlds together for the consumer’s benefit. Lower the friction-to-purchase and reduce the time-to-enjoyment.
So inventory investment? Costs of using space in the amazon warehouses and labor? Assuming Steve Madden owns the inventory in the Amazon warehouse. Do they have to duplicate that inventory for their own web fulfillment should a customer not want to buy with Prime? Am sure it will work out, especially if they have the right systems to help them forecast that. Not entirely a no brainer.
Adding Buy with Prime is a smart way to deliver on what shoppers want – speed and convenience. It’ll be interesting to see whether other brands will follow suit.
I think adding the Buy with Prime button will enhance the shopping experience with fast delivery and an easy checkout which could attract more Prime members on Steve Madden.
However, this comes with strings attached as any retailer in such partnership will have to share customer data with Amazon and deal with their partner fees. This would mean that Amazon can leverage the same customer data and target potential customers with better deals.
The convenience for customers is undeniable, but larger brands like Steve Madden shouldn’t rely too much on Amazon. Instead they should leverage their strong fulfillment capabilities and invest in their own systems to deliver similar benefits without the compromises.