Tip for Amazon Sellers: Mastering Amazon Seller Fulfilled Prime
Introduction
More than 60% of sales on Amazon come from independent sellers, many of whom are small and medium-sized businesses. Selling on Amazon has become an increasingly attractive option for entrepreneurs and business owners. Nowadays, sellers capitalize on Amazon’s massive customer base and it is by participating in the Amazon Seller Fulfilled Prime.
While SFP can help small and medium-sized businesses increase their sales, sellers must meet and maintain Amazon’s performance standards to be eligible for and keep their SFP status.
What is Amazon Seller Fulfilled Prime?
Seller-Fulfilled Prime (SFP) allows Amazon sellers to offer one-day and two-day Prime shipping to customers while fulfilling orders from their warehouse or a third-party fulfillment center.
Unlike Amazon’s Fulfillment by Amazon (FBA) program, where Amazon handles packing, shipping, and other fulfillment tasks from their warehouses, SFP lets sellers manage these tasks themselves. All FBA products automatically qualify as Prime since Amazon controls the shipping.
If you prefer to fulfill your products, known as Fulfillment by Merchant (FBM), to maintain full control over your inventory or avoid FBA fees, SFP enables you to offer the Prime badge on your listings. This means committing to fast, two-day shipping at no extra charge to the customer.
Offering Prime shipping can make your products more attractive to Amazon shoppers, boosting your sales. It also benefits Amazon by expanding its Prime offerings without needing more warehouse space.
How Does Amazon-Seller Fulfilled Work?
To be eligible for Seller-Fulfilled Prime (SFP), Amazon sellers must complete a trial period lasting between five to 90 days, during which they must fulfill at least 100 Prime orders according to Amazon’s strict shipping requirements.
During the trial period, sellers must offer Premium One-Day and Two-Day delivery options to demonstrate their ability to meet these fulfillment standards. Note that the Prime badge will not be displayed on listings during this time, and all orders must be processed with a zero-day handling time to ensure prompt delivery.
Amazon does not provide further details on the specific conditions or variations of the trial period, emphasizing the importance of consistently meeting their high standards from the outset. Completing the trial period allows sellers to earn the Prime badge on their listings, significantly boosting their visibility and sales potential on the platform.
Am I eligible for Amazon Seller-Fulfilled Prime?
Struggling with slow shipping times and high FBA fees? Boost your Amazon sales with Seller-Fulfilled Prime (SFP). By meeting Amazon’s shipping and customer service standards, you can offer Prime benefits from your own warehouse. This means faster delivery, more visibility, and happier customers—all while maintaining control over your inventory and avoiding those pesky FBA costs.
To qualify for Seller-Fulfilled Prime (SFP), you need to meet these criteria:
- Offer premium shipping options.
- Ship over 99% of your orders on time.
- Have an order cancellation rate below 0.5%.
- Use Amazon Buy Shipping Services for at least 99% of orders.
- Ensure on-time delivery is 93.5% or higher (effective October 1, 2023).
- Maintain a valid tracking rate of 99% or higher (effective October 1, 2023).
- Provide nationwide delivery for all standard-size products.
- Use shipping methods that support weekend delivery and pickup (Saturday or Sunday).
- Meet targets for 1-day and 2-day delivery promises.
- Deliver orders with approved Seller-Fulfilled Prime carriers.
- Agree to the Amazon Returns Policy.
- Allow Amazon to handle all customer service inquiries.
Amazon provides access to top transportation solutions to ensure a great Prime customer experience. After completing the trial period, Amazon will automatically enroll you in SFP, and your product listings will display the Prime badge.
To stay eligible for SFP, you must consistently meet the same performance standards. If your performance falls below Amazon’s criteria, such as a drop in feedback rating or an increase in cancellation rate, Amazon will remove the Prime badge from your listings, and you may lose SFP eligibility.
Who Can Use Amazon’s Seller-Fulfilled Prime Program?
Seller-Fulfilled Prime (SFP) is an excellent option for experienced Amazon sellers who already manage high volumes through Fulfillment by Merchant (FBM). This program allows sellers to offer the coveted Prime badge while maintaining control over their own inventory and fulfillment processes.
To participate in SFP, sellers must provide one-day and two-day Prime shipping nationwide, ensuring fast and reliable delivery across the country. This requirement means you must have efficient shipping operations and logistics in place to meet Amazon’s high standards.
If your business cannot consistently meet these shipping requirements, SFP may not be the best solution for you. However, for those who can, SFP offers the opportunity to increase sales, improve visibility, and attract more customers by displaying the Prime badge on your listings.
Pros of Amazon-Seller Fulfilled Prime
In today’s crowded online marketplace, standing out is essential for attracting and keeping customers. That’s where the Amazon Prime badge comes in as a game-changer.
While listing your products on Amazon boosts your exposure, enrolling in Seller Fulfilled Prime takes your success to the next level. Here’s why:
Potential Volume Discount for Postage
You have to pay the same FBA fulfillment fees no matter what volume you are selling if you are using FBA. However, if you are a high-volume FBM seller, you may get discounted postage rates from USPS, DHL, UPS, or FedEx since you are surpassing a certain threshold. This will be a distinguishing factor for you when it comes to Seller Fulfilled Prime.
Connect with Amazon’s Most Dedicated Shoppers
SFP puts you in touch with Amazon’s top customers: Prime members. These shoppers tend to spend a lot more than others — some say up to three times as much. That makes them a valuable group to target for your products.
Joining SFP means you get to present your products to these special customers. Plus, Amazon’s search engine favors Prime items, so you have a better shot at standing out compared to competitors.
Prime Badge: Trusted Sign of Quality
One big perk of SFP is getting the blue Prime Badge on your products. It’s not just a symbol—it shows customers that your stuff is top-notch and reliable.
Having that badge can boost sales by around 20-25%. So, it’s a powerful way to get more attention and sell more on Amazon. Plus, think about it: as an Amazon Seller Fulfilled Prime shopper yourself, how often do you choose products just because they have that Prime badge?
Enjoy "Free Delivery" Benefits
In online shopping, free delivery is a big deal for customers. Studies show that 70% of shoppers care most about getting free shipping.
As a Seller Fulfilled Prime member, you can use Prime’s “free delivery” message for all your products. This not only attracts customers but also makes their shopping experience better, which can lead to more happy customers coming back.
Save on Storage and Control Inventory
Using FBA can rack up high storage fees. But with SFP, you can save on these costs by finding cheaper storage options or handling things yourself. Partnering with the right team can make your deal with Amazon more profitable.
This can be a game-changer for sellers with products that have unpredictable demand or are bulky and need special care.
Of course, SFP isn’t perfect. Check out what SFP members have to say in the Seller’s Forum for real feedback.
Cons of Amazon-Seller Fulfilled Prime
Before jumping into SFP, it’s crucial to know about the potential downsides that could affect your business. You’ll need to think about your products, profits, location, how you’ll handle orders, and your long-term goals to decide if SFP is right for you.
Here are some cons to consider:
Tough Performance Targets
Amazon paused SFP sign-ups because some sellers weren’t meeting Prime delivery standards. To join and stay in SFP, you need to meet strict rules to give Prime customers a great experience. This means Amazon watches sellers closely and expects top-notch service, which can be tough for new or smaller sellers.
High Nationwide Shipping Costs
SFP now requires sellers to ship all over the country, not just regionally. This can be tricky, especially if you don’t have a presence on both sides of the country. It means you’ll need to rethink your shipping plans to cover the whole country without spending too much.
Many sellers worry about the cost of fast shipping for SFP, especially if they’re not centrally located.
Easily Manage Your Listings With Bookz Pro
Simplify your transition to Amazon Fulfilled Prime with Bookz Pro. With this software, you can easily prepare FBA shipments or list items as FBM, ensuring you meet Prime standards and provide excellent service to your customers.
Bookz Pro listing software is designed specifically for Amazon Seller, allowing you to list your products with ease and super fast. It offers seamless compatibility with thermal printers and delivers remarkable speed and efficiency. Enhance your listing process with Bookz Pro today.
Conclusion
Amazon Seller Fulfilled Prime has been beneficial for sellers that enhance their business operations and customer satisfaction. With its pros and cons presented, you can evaluate how it would improve and affect your business as a whole. Moreover, if you decide to try Amazon Seller Fulfilled Prime, you need to keep in mind the requirements and your eligibility as the seller. Furthermore, when you try your best to keep up with the ins and outs and study its mechanism. Then, you can master efficiency, boost your sales and reputation on Amazon as a seller.
Frequently Asked Questions
What is a Seller Fulfilled Order?
A seller fulfilled order is an order where the seller is responsible for storing, packing, and shipping the products directly to the customer. This contrasts with Fulfillment by Amazon (FBA), where sellers handle these logistics.
How does seller fulfilled prime work?
Seller Fulfilled Prime (SFP) allows third-party sellers to display the Prime badge on their products and ship orders directly to Prime customers from their own warehouse, while meeting Amazon’s strict performance requirements for eligibility, shipping, and customer service.
Who pays for shipping in Seller Fulfilled Prime?
In Seller Fulfilled Prime, the seller is responsible for the shipping costs. However, sellers can choose to include shipping costs in the product price or charge customers separately for shipping. It’s essential to meet Amazon’s Prime shipping standards, which typically include offering free two-day shipping to Prime customers.
What is the difference between FBM and Seller Fulfilled Prime?
FBM (Fulfillment by Merchant) and Seller Fulfilled Prime (SFP) both involve the seller handling storage, packaging, and shipping of products. The key difference is that with SFP, sellers must meet Amazon’s Prime delivery standards, offering fast, free shipping to Prime members, and are thus eligible for the Prime badge on their listings. FBM does not require adherence to these Prime shipping standards and does not provide the Prime badge.
How to set up seller fulfilled prime trial?
To set up a Seller Fulfilled Prime (SFP) trial, you first need to meet the eligibility requirements set by Amazon. Once eligible, enroll in the SFP program through your Amazon Seller Central account. Prepare for the trial period by ensuring you have the necessary infrastructure and processes in place to meet Prime shipping and customer service standards. Start your trial and maintain the required performance metrics throughout the trial period to successfully complete the trial and continue participating in the SFP program.
How long is the seller fulfilled the prime trial period?
The Seller Fulfilled Prime trial period lasts 90 days. During this time, sellers must demonstrate their ability to meet Prime shipping and service standards. If successful, they can continue offering their products with the Prime badge.
What is the referral fee for Seller Fulfilled Prime?
The referral fee for Seller Fulfilled Prime is the same as for other sales on Amazon, ranging from 6% to 45% of the total sales price (including shipping and gift wrap charges), depending on the product category. Each category has its specific referral fee percentage, which can be found in Amazon’s fee schedule.
