A Complete Guide to Amazon Seller Fulfilled Prime (SFP) in 2023

The latest announcement from Amazon unveils their plan to reopen the doors for Seller-Fulfilled Prime (SFP) enrollment on October 1, 2023. This is an avenue enabling third-party vendors to provide their customers with the sought-after two-day Prime shipping, all without relying on Amazon's warehousing infrastructure. Keep reading our blog if you want to discover further details about Seller-Fulfilled Prime.

What is Amazon Seller Fulfilled Prime (SFP)?

Seller-Fulfilled Prime is a program offered by Amazon that allows third-party sellers on the Amazon marketplace to offer products with the "Prime" badge without using Amazon's fulfillment centers. In the traditional Fulfillment by Amazon (FBA) model, sellers send their products to Amazon's warehouses, and Amazon handles the storage, packaging, shipping, and customer service. Products fulfilled through FBA are eligible for Amazon Prime benefits, including fast and free shipping for Prime members.

However, with Seller-Fulfilled Prime, sellers can maintain control over their inventory and fulfillment processes. They handle the entire process, including storing products in their own warehouses or facilities, packaging items, and shipping them directly to customers. Amazon provides the necessary transportation solutions to ensure you meet the high standards set for the Prime customer experience.

When displaying the Prime badge, sellers're making a commitment to fulfill orders with One-Day and Two-Day Delivery, and this comes at no extra expense for Prime customers.

How does Amazon Seller Fulfilled Prime work?

Participation in Seller Fulfilled Prime (SFP) demands sellers to manage the direct shipping of orders to customers within the committed Prime delivery period, whether it's One-Day or Two-Day. For eligibility, sellers must satisfy specific requirements, maintaining strong seller performance metrics and demonstrating a history of prompt order fulfillment. This involves a trial phase of 5 to 90 days, involving 100 Prime packages with all of Amazon’s strict shipping requirements.

During the trial, the Prime badge is absent from their listings. Upon successfully completing the trial, sellers are enrolled in the program. Effective SFP participation necessitates adequate inventory to fulfill Prime orders on time, and sellers have the flexibility to utilize their inventory management systems or integrate with Amazon's tools. Additionally, sellers are accountable for managing customer inquiries, returns, and refunds in line with Amazon's customer service standards, ensuring a positive purchasing experience.

What are the requirements for Seller Fulfilled Prime?

● Offer Premium Shipping Options
● Ship over 99% of your orders on time
● Have an order cancellation rate of less than 0.5%
● Use Amazon Buy Shipping Services for at least 99% of orders
● Have nationwide delivery coverage for all standard-size products
● Use ship methods that support weekend delivery and pick up (Saturday or Sunday)
● Meet targets for 1-day and 2-day delivery promises
● Deliver orders with our supported Seller Fulfilled Prime carriers
● Seller must agree to the Amazon Returns Policy
● Allow for all customer service inquiries to be dealt with by Amazon

The Advantages of Seller Fulfilled Prime

Amazon SFP provides vendors with the advantage of enhanced exposure and greater sales opportunities. There are also other benefits brought by SFP, some includes:

Reach more Amazon Prime members

Sellers utilizing Amazon's Seller Fulfilled Prime (SFP) program enjoy heightened exposure akin to FBA products, leading to increased sales conversions. Recently, Amazon noted that products becoming Prime-eligible for the first time through SFP saw over a 50% sales uplift. SFP equips sellers with the same exposure level as FBA, enabling them to tap into Amazon's Prime Members who are known for higher spending habits. By displaying the Prime badge on their listings, sellers enhance product discoverability, given Prime customers' ability to filter searches accordingly. This badge attracts loyal customers, with Prime members outspending non-members by nearly double on Amazon. SFP extends the benefits of the Prime badge without mandating order fulfillment through Amazon's exclusive network, granting sellers added visibility, increased sales, and control over their fulfillment process.

Get more control over inventory

Switching to Seller Fulfilled Prime (SFP) from Fulfillment by Amazon (FBA) offers sellers enhanced inventory control and visibility. Unlike FBA, where products are sent to Amazon's fulfillment centers, SFP allows shipping from non-Amazon warehouses, granting better management, particularly beneficial for multi-channel sales and seasonal spikes. This control fosters direct customer interaction, insights, and supply management, preventing stockouts and eliminating reliance on Amazon restocking. Utilizing SFP centralizes operations, avoiding delays between FBA warehousing and stock depletion, and even permits third-party fulfillment for SFP orders.

Avoid FBA long-term storage fees

As Amazon consistently achieves exceptional sales results each quarter, there is a notable rise in the requirement for warehouse area. Consequently, the escalating expense associated with storing goods is being shifted to the sellers. These sellers find themselves in a vulnerable position due to Amazon's dynamic and sometimes uncertain storage fees. In contrast, the Seller-Fulfilled Prime (SFP) approach empowers sellers by providing them with complete authority over their warehouse expenditures and requirements. Particularly advantageous for sellers who have effectively overseen their supply chain and possess a strong understanding of their sales projections, this approach holds the potential to significantly reduce costs.

Increase the chance to win the Buy Box

Amazon's SFP (Seller Fulfilled Prime) program enhances competitiveness for the Buy Box by allowing sellers to offer Prime-eligible products without utilizing Amazon's fulfillment centers. By meeting Amazon's stringent performance metrics, SFP enables sellers to deliver fast shipping and reliable service, factors that positively influence their Buy Box eligibility. This program empowers sellers to maintain control over inventory and fulfillment while still offering the Prime badge, thereby increasing their chances of winning the Buy Box and attracting a larger customer base.

How to Enroll in Amazon Seller Fulfilled Prime?

Step1: You need to meet the requirements to become eligible for the Seller Fulfilled Prime program and successfully finish the trial period.

Step 2: You should store your inventory within your personal warehouse or storage facility.

Step 3: Process the orders you receive and purchase shipping labels from carriers that have been approved by the Seller Fulfilled Prime program.

Step 4: Efficiently pick the ordered items from your inventory, pack them securely, and ship them out on the same day the order is received.

Step 5: Utilize Seller Fulfilled Prime-accredited carriers to gather and deliver orders to customers one or two days.

You can click on the “Join the waitlist.” button on Amazon Seller Fulfilled Prime page to be notified when enrollment reopens.

Selecting the right Amazon fulfillment strategy is pivotal for your business's success. If you're contemplating Seller-Fulfilled Prime or have more inquiries, feel free to share your oponions below!

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