Seller Fulfilled Prime : All Your Questions Answered!

Seller Fulfilled Prime : All Your Questions Answered!

Amazon Seller Fulfilled Prime (SFP) comes with a lot of great benefits. For brands that have mastered fulfillment, it offers an easy way to boost sales. But it comes with some pretty stringent rules and requirements too. Here’s everything you need to know before deciding to sign your brand up.

What is Amazon’s Seller Fulfilled Prime?

Seller Fulfilled Prime allows companies to earn the Amazon Prime badge, offer two-day shipping to Amazon customers, and store inventory and fulfill orders in their own warehouses.

In the past, companies that wanted to access the Amazon Prime badge or its perks had the option to use Amazon fulfillment services. Amazon needed a way to ship its customers fast and efficiently as its warehouses grew in size. In 2015, Amazon launched SFP. Many brands have taken advantage of the program to manage their fulfillment.

What are the requirements for Seller Fulfilled Prime?

Seller Fulfilled Prime offers many benefits. Brands who want to be part of the program must follow strict rules.

Only those with the highest performance metrics on Amazon accounts are eligible for SFP. They should also be prepared to give up some control over their marketplace policies to Amazon.

1. Amazon's rules are your guide.

Amazon Seller Prime is a program that allows brands to give up some control to Amazon. ● ● ●

Accepting and following its amazon returns policy Amazon will handle customer service Amazon's Purchase Shipping Service allows you to find approved carriers for at least 99 percent of your SFP orders

2. Amazon's performance requirements must be met Your Amazon account must have a track record of reliability in order to be eligible for Amazon's Seller Fulfilled prime program. This is: ● ●

More than 99% must be shipped on time Order cancellation rates must be lower than 0.5%

3. You must complete the Amazon SFP trial period Brands must also prove their ability to meet future expectations in order to be eligible for the Amazon SFP program.

During the trial period, they must demonstrate that they are able to meet Amazon Prime's 2-day delivery promise. This is: ● ●

All orders must be picked up, packed, and shipped the same day Amazon approved carriers to collect and deliver orders within one or two business days

These rules also apply to orders placed on Saturdays or Sundays.

The Prime badge will not be displayed on products during the trial. Customers won't get super-fast delivery. It's about showing Amazon that you can fulfill orders on the same day customers place them.

Your Amazon account must meet the Seller Fulfilled Prime requirements of at least 50 orders to be successful. To reach the required number, you have 90 days. An Amazon Prime badge will be automatically added to the product that you have enrolled for SFP if you successfully complete the trial.

Benefits of Seller Fulfilled Prime Is Seller Fulfilled Prime really worth the effort? Here's what you can expect to get from applying for the program:

1. Access to a larger audience Amazon has more than 150 million Prime members around the world who pay a flat annual charge to receive two-day free delivery on all orders.

These shoppers value fast, reliable and free delivery. Products that have the Prime badge are more likely to be clicked and sold. They can filter search results to ensure that Prime products are shown.

2. Visibility increases Amazon brands must compete with their competitors and third-party sellers who sell their products.

While Amazon's Brand Registry may help brands protect their intellectual properties, it cannot stop legitimate third-party sellers. To outdo them all, you can earn a spot on Amazon's lucrative Buy Box position. This white box appears on product pages and prompts most of the sales on Amazon. Seller Fulfilled Prime listings also have a greater chance of appearing here.

3. You can save money by using it Amazon sellers can also get the Amazon Prime badge by signing-up to Amazon's fulfillment service.

This is not a good option for large brands as they already have fulfillment and storage operations.

These brands can use their existing infrastructure to fulfill Amazon orders. This will allow them to avoid Amazon's fulfillment charges, which can be quite high for businesses that sell large products or need long-term storage.

Brands can also reduce costs by being in control of their processes.

4. You retain control over your inventory Brands can also better monitor their stock levels if they have control over order fulfillment.

They can manage omnichannel orders from one place. They don't need to worry about shipping products to Amazon's fulfillment centers before stock runs out.

You can also use your inventory tracking software to generate reports, find insights, and manage stock better.

5. This opens up many other options If a brand meets the requirements of Amazon's Seller Fulfilled prime, they may also be eligible to receive other fast shipping programs, such as eBay's Fast and Free or Walmart’s 2-Day Shipping.

Seller Fulfilled Prime has its drawbacks Prime customers get two-day free delivery. This is a significant commitment that can be costly.

Before you sign up, these are the negatives.

1. You must adhere to extremely high standards If a seller's performance falls or fails to meet the Seller Fulfilled Prime requirements, their SFP status is quickly removed.

There are many stories on the internet about sellers who lost their Prime badges for a month or permanently because their on-time shipment rate dropped below 99%. For any business that has invested in fulfillment to be eligible for Amazon SFP, this would be a disaster.

2. Seller Fulfilled Prime drives up costs Amazon's fulfillment fees and storage fees can be avoided by businesses that require the Prime badge. This will be more expensive than standard shipping options that are not Prime.

Warehouse workers are paid more to work weekends. Two-day shipping costs more than slower delivery methods.

3. Amazon has control over communications and shipping policies Amazon SFP is a way to give customer service operations over to Amazon. Brands that pride themselves on their customer service can find this problematic.

Amazon Prime's two-day shipping guarantee is also a requirement for sellers. This could make it more difficult for brands to maintain their competitiveness by offering the same standards on their platforms.

Amazon may also change the rules unexpectedly. In the past, Amazon SFP allowed brands to offer two-day Prime shipping in certain regions. They could deliver Prime customers to their nearest warehouses, where they were guaranteed fast delivery. Amazon has recently modified this. Now, everyone in the Seller Fulfilled Prime program must offer nationwide two-day delivery.

What are the differences between FBA and SFP? The fulfillment service of Amazon has been mentioned several times. Fulfillment by Amazon (or FBA) is the official name of this service.

FBA allows brands to ship bulk products to Amazon's fulfillment centers. Amazon staff then pick, pack, and ship the products as individual orders are received.

Amazon takes care of fulfillment and returns with this option. Instead of worrying about Seller Fulfilled Prime requirements and other details, brands can sign up for FBA and Amazon will take care of everything.

Amazon Seller Prime offers some of the same benefits. The Amazon Prime badge can increase visibility and sales. The performance of Buy Box also improves. Sellers also have to pay extra shipping and non-negotiable storage fees. These fees increase during the holiday season. Also, orders are sent in non-branded packaging.

Amazon SFP is a way to store products and process orders in your warehouse or any other third-party facility. This is a good option for brands with fulfilment already in place. This is also a great way to sell products such as food that are not eligible for FBA.

Final thoughts Amazon SFP can be a great way to increase sales for established brands. It's worth trying it with a few products before you commit to the whole program.

Brands who want to use Seller Fulfilled Prime must wait. While registration is currently on hold, sellers can still add their name to Amazon’s waiting list. They can continue to improve their performance metrics and arrange same-day order processing.