Amazon Bids Out Fast Shipping Options to Third-Party Sellers

Amazon is turning to third-party sellers to expand its fastest shipping options. The e-commerce giant is asking some FBA (Fulfillment by Amazon) sellers to submit bids for access to 'sub-Same Day' delivery, a service that arrives as soon as two hours after customers place an order.

Sub-Same Day deliveries are available in 2,300 metro areas and have experienced 12% higher sales on average compared to regular FBA service. Sellers who participate will only pay for units that actually ship through Sub Same Day, at the per-unit price they bid.

Amazon's introduction of a bid system makes using FBA more complicated for sellers, who now have to calculate a winning offer to ship more of their inventory with the fastest shipping option. The company says it will evaluate bids using factors such as customer feedback.