Amazon Prime MAY expand to include Free 2-Day Shipping from some Third-Party Merchants

According to sources at Recode, Amazon may be planning to expand the Prime 2-day shipping benefits to include products shipped directly by select 3rd-party merchants, without the items having to be physically present at an Amazon Warehouse or facility. It is a delicate dance, since Amazon and the 3rd-party merchants will have to negotiate how the actual shipping cost is paid, and the merchants would have to trade-off losing direct sales on their website from regular customers who instead opt for the free 2-day Prime shipping.

Amazon has been adding more features to its Prime service, but the new additions were not shipping related (Cloud Photos, Music, Radio, Video, Kindle First, eBook Lending library, 30 minute early access to deals, etc). In fact, a few years ago, they pulled back on the free 2-day shipping benefits by putting select low-priced items (typically $5 or less) under the Add-On Program, requiring Prime members to place an order of $25 or more before the shopping cart would allow them to buy the darned things (and you can’t pay shipping out of your own pocket for Add-On items even if you beg and plead with the shopping cart).

But perhaps Amazon’s hand may be forced by changes in the marketplace too, specifically on the shipping front, not the ever-expanding list of non-shipping benefits. Shoprunner continues to recruit online retailers for a meta-free-shipping service (includes the official Pentax and Casio stores, NewEgg, Tiger, Staples but not any camera-centric retailers), and has various promotions for discounted or free service. For example, some American Express credit cards include a free Shoprunner service.

Even though NewEgg participates in Shoprunner, they also have their own NewEgg Premier service that goes for $50 per year and offers free 3-day or less shipping. And Walmart is making progress towards their own $50/year free shipping service.