The closed circuit that Amazon has used to distribute goods is changing, at least for Amazon Prime members. They are going to allow certain goods to be shipped directly from the merchants or manufacturers, increasing the number of items that are eligible for fast delivery and cutting additional shipping costs. This warehouse-to-doorstep model will increase Amazon’s iron grip on online retailing.
Brad King, president of online apparel retailer Webzom, said Amazon offered to let him join Prime about two months ago, based in part on his company’s consistent shipping record.
“I always ship same-day anyway when it’s possible, so customers get the products quickly,” said King, who said his firm relies on Amazon for about 70% of its $10 million in annual sales. He operates a 15,000-square-foot warehouse in Ontario, Calif.