Amazon (AMZN) is apparently looking to go head-to-head against shipping rivals FedEx and UPS as it begins offering its Prime service to retailers outside its own online marketplace.

The e-commerce giant will now extend Prime shopping benefits to other online retailers through an invitation-only program that will roll out throughout 2022.

The Buy with Prime program will give online retailers the ability to offer Amazon’s over 200 million Prime subscribers fast and free delivery, in addition to taking advantage of Amazon’s free returns on eligible orders.

Retailers do not have to sell on Amazon or use its fulfillment services. However, the Prime shipping benefit will first be offered to third-party retailers that use the company’s fulfillment services.

Primes members will be notified that a retailer is part of Amazon’s Buy with Prime program when they see the Prime logo on their website, knowing they will receive the same “delivery promise” on eligible products from that third-party merchant’s online store.

Prime members will be able to use the payment method and shipping information that they have stored in their Amazon account. Notifications on shipments will also be provided just like they are with any Amazon Prime order.

Amazon Prime members receive free shipping and deliveries as fast as the next day, in addition to free returns. A Prime membership with the e-commerce retailer costs $14.99 per month or $139 per year.

“With the introduction of Buy with Prime, we’re expanding where members can enjoy trusted and convenient Prime shopping benefits beyond Amazon, adding even more value to their membership,” Jamil Ghani, vice president of Amazon Prime, said in a statement.

“Members will have the flexibility to shop from merchants directly, all while enjoying the fast, free delivery, seamless checkout, and easy returns they’ve come to know and love from Amazon,” he added.

The move by Amazon positions it more firmly against its shipping competitors, UPS and FedEx, as it continues to build its fleet of planes, trucks, and delivery drivers.

Dave Clark, Amazon’s CEO of worldwide consumer, told CNBC last year that Amazon is on pace to become the largest delivery service in the U.S. by early 2022.

As of Thursday premarket hours, shares of Amazon were trading at $3,109.65, up $29.69 or 0.96%.

The logo of Amazon is pictured inside the company's office in Bengaluru, India, April 20, 2018.
The logo of Amazon is pictured inside the company's office in Bengaluru, India, April 20, 2018. Reuters / Abhishek Chinnappa
RELATED STORIES