Selling on Amazon with Prime is a surefire way to increase Amazon sales. While Amazon FBA is the preferred way to get started, it’s not for everyone. For sellers who want to sell on Amazon but prefer to handle order fulfillment themselves, Seller Fulfilled Prime gives you that flexibility.
Getting started with Seller Fulfilled Prime is easy with our handy guide. But first, there are several important Seller Fulfilled Prime requirements you must know. This article covers all the steps needed to start selling on Seller Fulfilled Prime.
IS AMAZON SELLER FULFILLED PRIME A GOOD IDEA?
The first question you may ask yourself is, “is Amazon SFP worth it?” For many sellers, the answer is yes. Outsourcing fulfillment to Amazon with FBA is an excellent option for many people, but some problems can make SFP more enticing to some sellers.
Amazon warehouses are massive, and that means inventory can get lost or mishandled in the supply chain now and then. This can result in returns and lost revenue, which can eat into your bottom line. For e-commerce startups that operate on low margins, this is a real problem.
Another significant issue is the lack of branding that comes with having Amazon package your products. Packaging your items uniquely is a great way to brand your business and stand out in the mind of customers, so they remember you and come back to buy more in the future. With FBA, you can’t control how your items are presented to your customers.
But that doesn’t mean you have to do it all yourself. Let’s face it — In-house order fulfillment can be costly and cumbersome for small business owners. Outsourcing order prep to companies that specialize in Seller Fulfilled Prime fulfillment services gives you a customizable, turn-key solution that allows you to package items as you wish (minus the hassle of in-house fulfillment), all while increasing sales by selling on Prime.
It’s a win-win for online retailers that don’t want to handle fulfillment themselves but still want to be an Amazon Prime seller.
WHAT IS AMAZON SFP, AND HOW DOES SFP WORK?
If you want to know how Amazon SFP works, you have come to the right place. Follow the steps below to get started.
Step 1: Sign up for a Pro Seller Account
To qualify to be an Amazon Professional Seller, your account must be in good standing. To be a pro seller, you need to turn on Premium Shipping. That means you will offer one-day shipping, two-day shipping, or both. You will need to be an Amazon seller for at least 90 days to qualify.
Step 2: Fulfill 30 premium orders in one month
This is the real catch for how to become eligible for Amazon SFP. In the 30 days before applying for SFP, you’ll need to have completed 30 premium shipping orders. You must also set your pick up times for the carrier of your choice (UPS, USPS, and/or FedEx) accordingly to comply with Amazon’s cut-off time.
A premium shipping order means that the customer paid for a fast shipping option. On Amazon, this is either one-day or two-day shipping. The seller must also have a 99 percent or more valid tracking rate, 97 percent or higher on-time delivery, and a seller cancellation rate of less than 0.5 percent. All of this must occur within the 30 days before enrollment.
Step 3: Sign up for the Seller Fulfilled Prime Trial
The next step is to complete the Seller Fulfilled Prime application and agree to offer two-day or one-day shipping for Prime items. You also must agree to Amazon’s return policy and customer service requirements. Also, don’t forget to assign SKUs in the Prime Shipping Template. Failure to do so means those orders will not count toward your performance statistics. Don’t make this costly mistake!
Step 4: Fill 200 Prime Trial orders in 90 days
Within 90 days of starting the SFP trial, you must complete 200 eligible orders. Keep an eye on your performance statistics tab to view your current status. During the SFP Prime Trial, all eligible SKUs will have the Prime button activated for buyers to see. That should help you reach 200 orders much easier! Once that is done, you are eligible for Amazon SFP.
Step 5: Maintain good standing to continue using SFP
After you are approved for Amazon SFP, you will probably breathe a sigh of relief. Selling on SFP can be a game-changer to increase Amazon sales. While that’s all fine and good, sellers must maintain satisfactory ratings to continue selling on SFP.
In other words, Amazon can revoke SFP access for falling short on any of the criteria mentioned in step 2. If you find that Amazon revoked SFP, it is possible to re-apply once your account is in better standing.
Outsourcing SFP fulfillment to a private company can help keep your account in good standing
Most sellers can expect an increase in sales from participating in Amazon SFP. Customers will love seeing the Amazon Prime button on your items, which can do wonders to improve conversions.
Yet increasing demand can make keeping up with in-house order fulfillment challenges. Delivery speed and order accuracy are vital for being able to sell on SFP. If you need help with fulfillment, outsourcing order fulfillment to a private company can save you from getting SFP revoked.