The Amazon Seller Fulfilled Prime (SFP) program gives Amazon sellers (who have professional seller accounts) the option to display the Amazon Prime badge on orders placed through their fulfillment center or third-party logistics provider.
Throughout this article, we will explain everything you need to know about Fulfilled Prime and the advantages this Amazon marketplace mechanism offers potential sellers.
What is Amazon Seller Fulfilled Prime?
Using this program, qualified sellers can use the Prime badge on their products and deliver orders directly to Prime subscribers.
It is necessary for sellers to commit to delivering orders within two days without charging the customer an additional fee, to meet Amazon Prime’s high-performance expectations, and to use Amazon-approved shipping carriers.
The Seller Fulfilled Prime program maybe available to you if you prove this is possible. Including the Prime badge on products improves visibility in search, increases your chances of winning the Buy Box, and taps into an element of trustworthiness that is crucial to customers.
Requirements For Amazon Seller Fulfilled Prime
Amazon Seller Fulfilled Prime requires suppliers to be eligible for Premium Shipping in order to be considered and remain eligible. To be eligible for this program, you must meet the following criteria:
- For Premium Shipping orders, a demonstrable on-time delivery capability of at least 92%.
- The tracking ID must be valid for at least 94% of Premium Shipping orders.
- Approximately 1.5% of Premium Shipping orders are canceled.
- It is necessary to maintain previous performance percentages.
- Provide premium shipping options in the future.
- Maintain an on-time shipping rate of 99%.
- Have a cancellation rate of less than 0.5%.
- Use Amazon Buy Shipping for at least 98.5% of orders.
- Use an Amazon-approved carrier to deliver orders.
- Accept and adhere to the Amazon Return Policy.
- Allow Amazon to handle all customer service inquiries.
How Does The Amazon SPF Works?
According to Amazon sellers, 70% have increased their sales by more than 20% since getting the Prime badge. With the SFP, potential customers can choose from a wider range of products.
It is also ideal for selling high-volume or delicate products. The couch, the vase, the jewelry, or the mattress are some examples. The seller must go to the Seller Fulfilled Prime section in Seller Central to apply for SFP.
In this step, you must create a Prime shipping template that specifies specific characteristics, including whether you will ship locally or nationally.
As a condition of getting in early, you must pass the Seller Fulfilled Prime test. The seller will be notified two days before SFP begins if all the requirements are met.
How To Enable The Amazon SFP?
- The first step is to sign up for a professional seller account and enable Premium Shipping.
- The second step entails fulfilling 30 premium orders per month. Amazon Seller Fulfilled Prime eligibility relies on this. 30 Premium Shipping orders must be completed within 30 days of applying for the SFP.
- The third step is to enroll in the Seller Fulfilled Prime trial. To offer overnight or two-day shipping on Prime items, you need to complete the Seller Fulfilled Prime application. The return policy and customer service requirements of Amazon must also be agreed to.
- The fourth step is to fill 200 Prime trial orders in 90 days. You must complete 200 eligible orders within 90 days of starting your SPP trial. To see your current status, check your performance stats tab.
- For continued use of the program, step 5 – Maintain good standing.
SFP Shipping Rates
The Amazon Seller Fulfilled Prime shipping rates are determined primarily by order volume, packaging size, and the location of the customer. Free standard shipping must be offered on all Prime orders, which can increase shipping costs.
The SFP is generally more cost-effective than the FBA program, but in both programs, sellers must pay an Amazon referral fee, which is between 5%-45% of a product’s selling price (average of 15%).
Advantages and Disadvantages of Seller-Fulfilled Prime
The truth is that sellers are transitioning to specific ASINs to be fulfilled through Seller-Fulfilled Prime for several reasons, including:
- Gain access to the prime customer base.
- They will have complete control over their inventory, which will eliminate the need to ship stock to Amazon.
- Have the same privileges as Fulfillment by Amazon (FBA) sellers.
- Eliminate FBA shipping fees.
- Avoid incurring long-term storage costs.
- Increasing profits with bulky, heavy merchandise that is subject to high FBA fees.
- FBA is not available for certain products.
- Improve the return process by making it more transparent.
- With SFP, sellers can track and identify returns directly for Prime purchases.
However, the Amazon Seller-Fulfilled Prime program is expensive. Due to the added costs, this program is quite not suitable for all sellers. It will be much more profitable for manufacturers and brand owners, who are the sellers that work with the highest margins.
If you are a seller that resells third-party products or a multi-brand store, this program will not suit your needs, or at least, it will not be suitable for all your products.
Whether you choose the Fulfillment By Amazon or the Seller Fulfilled Prime program, some methods can help you raise up your sales and have a profitable business.
One of these methods is buying online arbitrage deals, which can help you find the right products without sourcing in 1000+ online stores.
With Amazon Seller Fulfilled Prime, you have the option of shipping directly from your warehouse to local Prime customers. Your products will display with a Prime badge once you complete your Seller Fulfilled Prime trial, increasing your visibility.
Salman Zafar is a serial entrepreneur, digital marketer, writer and publisher. He is the Founder of Techie Loops