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Do you want to sell on the leading platform Amazon with the prime symbol product on your listings? Amazon Seller Fulfilled Prime program allows the 3rd party sellers to provide prime shipping facilities within two days without using Amazon's Warehouse fulfillment. The SFP program helps small & medium size businesses because it improves their sales. For this, the seller should meet all the requirements & performance standards of Amazon. Here in this blog, we will cover everything about the Amazon seller fulfilled prime requirements.
What is Seller-Fulfilled Prime?
SFP is the program that allows prime seller Amazon to provide a prime shipping facility to customers for 2 days. The sellers should fulfill orders from their warehouse or the 3rd party fulfillment center. This program is different from the fulfillment by Amazon FBA program.
In this program, amazon has all the responsibilities of Shipping, packing and fulfilling the additional fulfillment operations. The SFP program allows the sellers to get amazing sales benefits along with the prime badge of the listing. You can commit to fulfilling all your orders with a fast processing method within 2 days without charging any extra to your customers when you enroll yourself into this SFP program.
This program helps drive business sales and improves the prime offering without consuming more warehouse space. Now you have a better idea about what Seller Fulfilled Prime is.
How does Amazon SFP Work?
From September 2020, Amazon is not accepting any new enrolment, but if you want to join in the future, you should follow the below-discussed rules.
To be the trusted partner of this program, the seller must go through a certain level of the trial period from 5 to 90 days. They should fulfill all the fbm orders by following the strict regulations of Amazon. During the trial of amazon sfp, you must choose one-day to two-day premium delivery options. By doing so, you can prove to yourself that you are meeting with all the fulfillment premises. The prime-level badge will not be visible on the listing during the trial period. You must meet the following criteria for at least 50 prime trial orders.
- Ship more than 99% of the products on-time
- The cancellation of order rate should be lower than 0.5%
- Add tracking ID on 84% of products, maximum
- The cancellation rate should be less than 1%
- Try to maintain a feedback rating of 4.5+
- Processing orders in zero-day handling time
- Offer shipping premium facilities
- Use Amazon shipping services for 99% of your order.
Once you successfully follow all these factors in your trial period, you can easily enroll yourself in the seller fulfilled prime program. After that, your product listing will be displayed on the prime badge! To maintain SFP eligibility, you should meet the same performance level consistently. Amazon will remove the Prime badge from your listing if the feedback rating falls even for a day. It will make you no longer eligible for the SFP.
Related: How to Qualify for Seller Fulfilled Prime
Pros and Cons of Amazon Seller-Fulfilled Prime
Pros
Getting Access To Reach The 150 Million Prime Members Of Amazon
Prime members are known as the most loyal members of Amazon. More than 67% of prime amazon members want to shop online from only one site: Amazon. When you enable the prime badge on the listing, you can target the prime members. You can discover the prime Amazon Customers and boost your sales rate.
No Need To Pay Additional FBA/storage costs
When your product is listed under the SFP program, you don't need to pay any additional storage & FBA cost. The fee structure of Amazon is based on dimension & weight. Using SFP will give you better profits rather than merchant-fulfilled Prime. The storage fee also varies based on the time. Amazon can minimize your storage space if you have a low IPI score.
Related: fulfillment Services Pricing: How Much Does A fulfillment Center Cost?
Get The Chance To Win A Buy Box
Winning the chances of Buy Box means when the customer clicks on "Add to cart," they want to buy products from you by default. The products on Amazon having a Prime badge have increased chances to grab the Buy Box. If a seller sells their product through FBM, he should lower the price to grab the Buy Box.
Get Control Over The Inventory
By enrolling in the SFP program, you can get better accountability & insight into Amazon's inventory. You will also get the option to store your products at 3rd party fulfillment centers.
Cons
You Should Meet The Strict Standards Of Amazon
If a seller can't meet the eligibility of Amazon's requirements, the platform will eliminate the prime eligibility. Since 2021, Amazon has followed vital requirements, which are more stringent.
Cover The Cost Of Storing & Shipping Items
You can save your money on FBA fees & also through Amazon storage fees. The premium shipping cost can add to the margins.
You Should Handle Returns
When using the FBA, the returns from customers are handled by Amazon and returned to them. When you become a member of SFP, the products the customer returns will be returned to you.
Amazon Seller Fulfilled Prime Requirements
SFP is an excellent option for all experienced Amazon Sellers with high volumes. The SFP allows sellers to enable the prime shipping facilities to specific regions for two days. You should meet the following requirements.
- Ship 99% of the products on-time
- Integrate tracking ID on a maximum of 84% of products
- The feedback rating should be 4.5+
- Less than 1% of the cancellation rate
- Use Amazon shipping services for all your orders.
Enrollment in the SFP program is now closed. So, if you want to join, you can put yourself on the waiting list.
Amazon Seller Fulfilled Prime FAQs
How can I tell if a product is FBA or Seller Fulfilled Prime?
You'll need to do a little detective work to tell if a product is FBA (Fulfillment by Amazon) or Seller Fulfilled Prime.
The most significant difference between FBA and SFP programs is the cost. The SFP program involves transportation fees for Amazon carriers and marketplace fees. When looking at an item on Amazon's website, check the "More Buying Choices" box below the main image and product description. Here, you should be able to see two different types of sellers: "Fulfilled by Amazon" or "Ships from and sold by [company]."
If the seller is labeled as "Fulfilled by Amazon," it means an FBA item qualified for Prime benefits, including free shipping for items over $25. If the seller says, "Ships from and sold by [company]," then it isn't an FBA item and won't be eligible for Prime benefits.
What Is The Impact Of Seller Fulfilled Prime On Buyers And Sellers?
Seller Fulfilled Prime (SFP) has revolutionized eCommerce by allowing sellers to offer Amazon's "Prime" free two-day shipping directly from their warehouses. This means buyers can get the same convenience and reliability of buying products through Amazon without paying additional shipping fees or waiting longer than necessary for their items.
For sellers, SFP offers immense benefits. First, it provides a competitive advantage since customers are likelier to purchase an item with Prime-eligible delivery options. It also gives them more control over their inventory and product fulfillment process, ultimately improving efficiency and cost savings in warehouse operations. At the same time, they remain eligible for all of Amazon's marketing offers, like increased visibility on search results and access to customer reviews and other trust markers that increase sales conversion rates.
From the buyer's perspective, they receive the same level of convenience but now have access to a much more comprehensive selection via third-party merchants who don't have their storefronts on Amazon yet still provide quick delivery times with Prime eligibility which is something unique compared to other eCommerce marketplaces out there today. The result is that both buyers and sellers benefit from SFP because it increases marketplace efficiency while providing better value for everyone involved in the transaction process - whether you're selling or buying!
What Is The Difference Between Seller Fulfilled Prime and FBA?
Seller Fulfilled Prime (SFP) and fulfillment by Amazon (FBA) are two different fulfillment models Amazon offers. The main difference between these two services lies in who is responsible for storing and dispatching orders.
With Seller Fulfilled Prime, the seller is solely responsible for managing inventory, packing, Shipping, customer service, and returns. They must have their warehouse facility or a third-party logistics provider handle this process efficiently and meet Amazon's stringent performance standards. Suppose they can manage all of these requirements. In that case, they will receive benefits, including fast shipping times and access to the "Prime" badge that consumers recognize as an indication of high quality on the platform.
With FBA, sellers are not required to be involved with managing the entire order fulfillment process; instead, Amazon takes care of most or all aspects of packaging and shipping your products directly to customers from their warehouses using their personnel – providing greater efficiency at scale than merchants could achieve on their own. In addition to full access to Prime eligibility, sellers benefit from increased visibility when advertising through sponsored ads via Seller Central once participating in the FBA program. Furthermore, if you choose this option, you give up control over operations such as ordering new stock, return policy, etc. which Amazon will manage to depend upon their policies.
Related: Remote fulfillment with FBA: Complete Guide
What Is The Difference Between SFP and Premium Shipping?
Seller Fulfilled Prime (SFP) is Amazon's program for third-party sellers to offer Prime-eligible orders with their own fulfillment and shipping operations. This means that even though the customer is ordering from a third-party seller, they will still receive the standard 2-day Shipping from Amazon.
On the other hand, Premium Shipping is an upgrade option sellers offer to ship items faster than what Amazon typically provides. Depending on where you live, this could be overnight or one-day delivery, but it's entirely up to each seller since they are responsible for fulfilling these orders. It also requires customers to pay extra for this fast delivery service; typically, it's a fixed fee similar to what SFP charges, but always at least double the cost of regular Shipping.
The main difference between Seller Fulfilled Prime and Premium Shipping comes down to speed and cost. With SFP, you get fast 2-day delivery at low prices relative to Premium Shipping which provides expedited delivery options but at higher costs due to having different providers handling them from each seller.
What is "Buy Shipping," and how do I access it?
Amazon Buy Shipping is an exclusive shipping service offered by Amazon for its customers. This service simplifies the shipping process by allowing customers to purchase labels and manage their orders easily within their Seller Central account.
The benefits of using the Amazon Buy Shipping service include access to discounted rates on USPS, FedEx, and UPS packages and up to 50% off select services such as Priority Mail Express International and Priority Mail Express Domestic. You can also save time with automated tracking data received via email or your Seller Central account dashboard. Furthermore, you can ensure accurate delivery times with the easy-to-use end-of-day processes that are streamlined throughout the delivery process.
To access this service, you only need a valid seller account with Amazon's marketplace in good standing and enrolled in the Selling on Amazon program. From there, log into your Seller Central account dashboard and look for an icon labeled "Buy Shipping" near the bottom left-hand corner of the screen (for desktop users). Mobile users will find it under "Manage Orders." Clicking this icon will redirect you to where you can purchase labels directly from within your dashboard without leaving Seller Central!
Is Seller Fulfilled Prime worth it?
Yes, Seller Fulfilled Prime (SFP) is worth it! As an Amazon seller with access to SFP, you can offer your customers guaranteed two-day Shipping on select products. This makes the shopping experience more convenient and enjoyable for them, leading to increased loyalty and sales. Additionally, SFP sellers benefit from lower costs than those who use Amazon fulfillment centers or other third-party shippers. These cost savings come mainly from avoided packing materials expenses, staff time associated with packing shipments, reduced warehouse space requirements, fewer returns due to superior customer communication needs with direct fulfillment, and improved scalability as orders increase. For these reasons and many more, Seller Fulfilled Prime can be an excellent asset for Amazon sellers looking to expand their reach and improve customer satisfaction!
Conclusion
After reading this blog post, you should better understand the steps and requirements associated with Amazon Seller Fulfilled Prime. Becoming an SFP can impact your eCommerce sales since customers are searching for faster delivery and statement-making packaging. Sure, there are many rules and criteria to consider, but if you follow these guidelines, your products will undoubtedly spark success amongst Amazon Prime shoppers! Why not contact a reliable third-party logistic provider like Simpl to simplify things even more? We provide intelligent order fulfillment solutions to make it easier for merchants to go beyond the basics of fulfilling eCommerce orders — so contact us today! Here at Simpl, we understand how important being an Amazon Prime seller is — bringing immense value to eCommerce sellers. Let's begin your journey toward becoming an SFP — what do you say?
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