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.
Related: How to Get Free Samples on Amazon?
Pros and Cons of Amazon Seller-Fulfilled Prime
Amazon Seller-Fulfilled Prime is a program offered by the e-commerce giant that allows businesses to offer premium shipping services for their products. While this can be a great way to enhance your business and increase customer satisfaction, there are also some potential drawbacks to consider.
Pros of Amazon-Seller Fulfilled Prime
Faster delivery times
One of the biggest benefits of Seller-Fulfilled Prime is the ability to offer faster shipping times to your customers. Because you are fulfilling orders directly and have more control over your fulfillment process, you can usually ship products out much more quickly than if you were relying on Amazon's warehouse system.
Improved customer service
Another major advantage of Seller-Fulfilled Prime is the ability to provide better customer service for your customers. Since you are fulfilling your own orders, you have more control over the order and delivery process, making it easier to resolve any issues that may arise.
Increased revenue potential
By participating in Seller-Fulfilled Prime, businesses are also able to access Amazon's vast customer base and reach a wider array of potential buyers. This can help increase overall sales and revenue for your business, as well as improve profitability over time.
Related: Amazon FBA Fees-a Complete Guide
Cons of Amazon-Seller Fulfilled Prime
Higher operational costs
One potential downside of Seller-Fulfilled Prime is the increased operational costs that may be associated with fulfilling orders. To maintain your status as a Seller-Fulfilled Prime business and offer fast shipping times, you may need to invest in additional logistics and supply chain resources, which can be costly.
Another potential downside of participating in Seller-Fulfilled Prime is the increased competition that you will face from other businesses on Amazon. Since access to this program is limited and only given to top-performing sellers, it can be more difficult for new businesses or those with lower ratings to break into the market.
What is Amazon SFP, How Does it Work & How to Qualify for Seller Fulfilled Prime
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.
Tips for preparing your products for Seller Fulfilled Prime
If you want to prepare your products for Amazon Seller-Fulfilled Prime, there are several key steps that you should focus on. These include carefully managing inventory levels, choosing the right shipping options, and paying close attention to customer feedback.
Carefully managing inventory levels
One of the most important things to consider when preparing your products for Seller Fulfilled Prime is maintaining accurate inventory levels. This means ensuring that you always have enough stock on hand to fulfill orders promptly, without running the risk of overselling or potentially disappointing customers if items are out of stock.
Choose the right shipping options
Another important factor is selecting the right shipping options for your products. While faster delivery times may be a major selling point for some businesses, it is also important to consider the cost of shipping and whether it aligns with your overall strategy and business goals.
Pay close attention to customer feedback
Finally, one of the best ways to maintain Seller-Fulfilled Prime status is by monitoring and responding to customer feedback regularly. This can help you identify any issues that may be arising with your fulfillment process or shipping times, as well as keep you apprised of any changes or improvements that your customers would like to see. With regular feedback from customers, you can stay on top of changes in the marketplace and continue offering a high level of service for your products.
Importance of Customer Feedback in Maintaining Seller-Fulfilled Prime status
By monitoring and responding to customer feedback, you can stay on top of any issues or concerns that your customers may have, and make the necessary changes to improve your fulfillment process over time. Additionally, staying attuned to customer feedback allows you to identify and address any trends or patterns in order volume or customer satisfaction, which can help ensure that your products remain competitive and relevant in today's marketplace.
With effective customer feedback management, businesses participating in Seller-Fulfilled Prime can continue providing the best possible service for their customers and reap the many benefits of this highly coveted program.
As more and more businesses compete for access to this program, it is essential that you work hard to maintain your Seller-Fulfilled Prime status by consistently providing top-quality products and services. By focusing on these key areas, you can help ensure the continued success of your business in today's competitive Amazon marketplace.
Outsourcing SFP fulfillment to a private company can help keep your account in good standing
If you’re looking to sell on Amazon SFP, the first thing you need is a qualified seller account. And if your company has grown too large for in-house order fulfillment challenges, it may be time to consider outsourcing order fulfillment with an experienced third party provider like Simpl Fulfillment . With our help and expertise, we can make sure that everything from delivery speed and order accuracy are prioritized so that they align with what Amazon wants sellers participating in their program to do. We want you to succeed as much as possible! So come see how we can increase sales by taking care of every aspect of fulfilling orders through private label FBA – all while ensuring customer satisfaction.
Learn how our process works here.