Seller Fulfilled Prime (SFP) – Pros and Cons- Is it Right for You?
Overview
Many sellers have come to us with concerns about the Amazon FBA (Fulfillment By Amazon) process and fees, holding large quantities of sellable inventory at Amazon, and losing out on the Buy Box. As we know Amazon shows preference to sellers who use FBA, because it can guarantee 2-day shipping to all 100 million Prime members in the US marketplace. According to CIRP, Prime members in the U.S. spend 2.33 times non-Prime members. By becoming a Seller Fulfilled Prime member, you will be able to sell your inventory across multiple channels from the same warehouse, without paying FBA fees. You will have access to Prime members and be able to compete with other Prime sellers.
What is SFP?
Seller Fulfilled Prime allows you to have a Prime badge without using Amazons Fulfillment centers. In other words, it allows you to deliver products directly to US domestic Prime Members from your own warehouse. The caveat is you’ll have to provide the same 2-day shipping promise that Amazon guarantees to its Prime members.
Benefits of SFP According to Amazon
- Reach the most loyal Amazon customers
With Seller Fulfilled Prime you can offer your products to our wide network of 100+ million Prime members. By offering your products as Prime listings, Prime customers will be able to easily find your products as they use our on-site filters, giving your ASINs more visibility and discoverability.
- Compete more effectively for the Buy Box
Your products listed with Seller Fulfilled Prime have increased chances to win the Buy Box. Winning the Buy Box means that when customers click on “Add to Basket”, their default option is to buy the product from you.
- Offer Guaranteed Delivery Date messaging
Seller Fulfilled Prime orders display FREE Two-Day Delivery messaging to Prime customers, making them more likely to make multiple and repeat purchases.
How to Enroll and Maintain Enrollment
First: Qualifying for SFP and upholding Amazon’s Prime standard is challenging to say the least. To qualify you will be required to go through a trial period to prove you can deliver the same customer satisfaction that Prime guarantees. You will not receive your Prime badge until your trial period is over. During this period, you will have to process your orders the same day they are received. If you complete the trial successfully, you will be automatically enrolled in the program.
Next:
- Maintain your own storage facility
- Pro: You will no longer be subject to Amazon’s storage size restrictions or fees. Your facility can also be used as a warehouse for you other sales channels. Inventory is no longer limited to Amazon sales.
- Process your own orders and coordinate shipping and labels using approved carries- Ship same day!
- Con: this requires a very efficient and streamlined operation. Failure to comply will result in loss of your Prime badge. Keep in mind that you will have to purchase shipping through Amazon’s Buy Shipping Tool and generate the labels. Automation of this process is possible if you can find a partner that is able to integrate with Amazon Buy API.
- Seller Fulfilled Prime carriers collect and deliver orders in two days to customers
Maintaining your SFP enrollment will require:
- 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 98.5% of orders
- Deliver orders with our supported Seller Fulfilled Prime carriers
- The seller must agree to the Amazon Returns Policy- This means you will be responsible for coordinating returns as well as Amazon.
- Allow for all customer service inquiries to be dealt with by Amazon
Amazon States the best products for this program are:
- High-value items
- Products with seasonal or unpredictable demand
- Items with variations
- Slow-moving goods
- Inventory that requires special handling or preparation
Seller Fulfilled Prime is currently on a waitlist.