Amazon Seller Fulfilled Prime: Maximizing Profits and Customer Loyalty

February 14, 2024 Amazon Seller Fulfilled Prime: Fast and Reliable Delivery for Prime Members

Craving the Coveted Prime Symbol? 

Sell your products with the prime badge directly from your warehouse.

It’s time to grow your business globally with Amazon Seller Fulfilled Prime.

Wondering! Right?

By this point, any retailer would know the advantages of selling on Amazon, especially on Amazon Prime.

You can gain access to lucrative Prime fulfillment through Fulfilment by Amazon (FBA) and Seller Fulfilled Prime Amazon (SFP) programs.

Despite the fact that both programs are meant to help you in selling on Amazon Prime, that is the only similarity between them. 

Based on their profitability, objectives, and size, SFP Amazon and Amazon FBA Prime are different from one another, and each has qualities that are certain to appeal to a small number of enterprises.

Reach your customers without risking your reputation, business, or revenues with Amazon’s quick and stringent shipping criteria and satisfy your recurring sales targets where Amazon Seller fulfilled Prime plays a crucial role.

Let’s examine this carefully.

What is Amazon Seller Fulfilled Prime?

A Prime program called Amazon Seller Fulfilled Prime lets you ship directly from your warehouse to domestic Prime consumers.

 By displaying the Prime logo, you agree to fulfill orders with two-day delivery at no additional cost for Prime members. 

To assist you in meeting Prime’s high customer service standards, Amazon gives you access to the appropriate shipping options.

Amazon Seller Fulfilled Prime Overview:

Amazon Seller fulfilled Prime offers the most significant benefit for resellers who have already shipped themselves. The SFP Amazon was established to reduce strain on Amazon’s inventory or maximum stock levels while maintaining excellent shipping standards.

Vendors might become eligible for Amazon seller prime as soon as the trial time is up.

SFP Amazon and FBA shouldn’t be mixed up. The fundamental Seller fulfilled prime Amazon requirements including using Amazon’s shipping services, according to return rules, delivering 99% of purchases on schedule, etc. The two programs are entirely different.

The Seller must provide free standard shipping for SFP Amazon. However, financial reasons should be one of many factors determining participation in this course.

How does Seller Fulfilled Prime work?

How does Seller Fulfilled Prime work?

Right now, Amazon is not accepting new registration for Amazon seller prime. By using the Join the Waitlist option located here, you can sign up for the waitlist and get notifications when it reopens. 

Premium Shipping

Consistency in offering Premium Shipping services is essential for sellers. However, it is important for sellers only to initiate the Amazon Seller fulfilled Prime trial to showcase Premium Shipping capabilities. To qualify for Premium Shipping, sellers must meet the requirements before going live.

Enrolling in SFP

To participate in the Prime fulfillment program, sellers can enroll through Seller Central. They must then assign their products to the “Prime trial” shipping template. Only items given to this template will be considered when evaluating performance against the trial requirements.

Trial Period

The trial period for SFP Amazon lasts between 5 and 90 days and requires a minimum of 200 orders. Throughout this period, sellers must strive to maintain a high overall performance percentage.

Sustaining SFP Status

Once a seller completes the trial period, they must continue to meet the criteria and provide reliable service to their customers to maintain their Amazon Seller fulfilled Prime status.

Amazon Seller Fulfilled Prime Requirements:

Amazon places great importance on providing exceptional service to their Amazon Prime Members. They have established stringent qualifications for sellers to participate in the Prime fulfillment program to ensure this. 

Here are the essential qualifications for sellers or their Seller fulfilled prime 3pl providers:

Eligibility:

To qualify for Amazon Seller fulfilled Prime, sellers must meet the requirements for the Premium Shipping Program. These requirements primarily revolve around offering 2-day shipping, the preferred option for Amazon Prime members. 

The eligibility requirements for Premium Shipping, based on the trailing 30 days, are as follows:

  • Maintain an on-time delivery rate of at least 92% for Premium Shipping orders.
  • Provide a valid tracking ID for at least 94% of Premium Shipping orders.
  • Keep the cancellation rate for Premium Shipping orders below 1.5%.

Trial Period:

Eligible Amazon sellers or their Seller fulfilled prime 3PL providers must undergo a trial period for SFP and meet the following criteria based on a minimum of 50 Amazon seller Prime trial orders:

  • Achieve an on-time shipment rate of at least 99% for Prime Orders.
  • Utilize Buy Shipping Services for at least 98% of Prime orders.
  • Maintain a cancellation rate of 0.5% or less for pre-fulfilled Prime orders.

Terms and Policies:

To maintain SFP Amazon status, sellers must adhere to the following policies as outlined in the prime fulfillment program terms:

  • Purchase all shipping labels for orders with a Prime item through Amazon’s Buy Shipping services.
  • Direct all post-order service inquiries to Amazon.
  • Offer Prime shipping benefits.
  • Follow Amazon’s return policy.

[Free Guide]

How to Choose a 3PL for Your Amazon Business

Upon successful completion of the trial period, sellers are automatically enrolled in Amazon Seller fulfilled Prime. 

They must then continue to meet these requirements on a rolling 7-day basis, maintain a minimum of 200 orders every 90 days, and achieve a minimum 97% percentage of on-time delivery for Prime Orders. 

Even if they aren’t eligible for SFP Amazon, sellers who don’t comply with these conditions can still sell their goods on Amazon.

Amazon Seller Fulfilled Prime in just five easy steps:

Step 1: Complete the trial period and meet the requirements for Seller Fulfilled Prime Amazon.

Step 2: Stock up your warehouse with inventory.

Step 3: Complete the ordering process and purchase shipping labels from authorized carriers.

Step 4: Pick up, pack, and send off your orders on the same day.

Step 5: Seller Fulfilled Prime couriers collect and deliver orders to clients in two days.

Enjoy the benefits with Amazon Seller Fulfilled Prime:

Benefits of Amazon Seller Fulfilled Prime

Reach Amazon’s most loyal customers

An Amazon Seller fulfilled Prime allows you to offer your products to our extensive network of Prime members.

By listing your products as Prime offers, Prime customers can easily find your products using our on-page filters, making your ASINs more visible and discoverable.

Compete more effectively to differentiate your offering

Your items listed as “Managed Best Sellers” are more likely to become featured.

Highlighting your ad means that when customers click Add to Cart, they can buy the product from you by default.

Guaranteed delivery date

Seller Fulfilled Prime Amazon orders offer FREE 2-day shipping for Prime customers, increasing the likelihood of repeat purchases.

Significant disadvantages of using SFP Amazon:

Maintaining SFP Status:

It is crucial to meet their stringent standards to maintain Amazon Seller fulfilled Prime status on Amazon. Please complete these requirements to avoid the removal of Prime eligibility. As of February 2021, Amazon’s standards have become even more rigorous, making it challenging for many sellers to comply.

Costs of Storing and Shipping:

While utilizing SFP Amazon allows you to save on FBA (Fulfillment by Amazon) fees and storage costs, it does not eliminate all expenses. 

It’s essential to consider the expenses associated with maintaining a warehouse, employing staff, acquiring shipping supplies such as boxes and labels, and covering expedited shipping costs. Premium shipping expenses, in particular, can significantly impact profit margins.

Handling Returns:

When using FBA, Amazon handles customer returns and manages the process internally. However, with Amazon seller prime, sellers adhere to the same return policies as FBA sellers and order customer returns. This can present challenges if you need more space or a well-defined standard operating procedure for handling returns.

Significant Differences between SFP and FBA:

Shipping is the primary distinction between Amazon Seller Fulfilled Prime and FBA.

Both can give you the Prime badge and increase the chances of winning Buy Box, but it’s up to the SFP program’s merchants to fill orders and cover shipping costs.

       Topics

  FBA

Own Shipping

  SFP

Prime Badge

Yes

No

Yes

Buy Box Perk

Yes

No

No

FBA Fee

Yes

No

Yes

Customer Service

Amazon

Seller

Amazon

Own Shipping Operation

No

Yes

Yes

Shipping Performance

No

Yes

Yes

Control Over Shipping

N/A

Complete

Some

One of the primary drawbacks of SFP is that vendors must pay for shipping so that buyers may receive their purchases fast and at no extra expense.

Amazon handles delivery for FBA sellers. But there are costs involved, and they might be confusing.

FBA fees might ultimately be more or lower than the cost of self-shipping items. FBA can be particularly costly for things that are heavy, bulky, oddly shaped, or sluggish to sell.

Significant differences between premium shipping and SFP Amazon:

Amazon Seller Fulfilled Prime and Premium Shipping are often mentioned together, but it’s essential to understand that they are distinct programs.

Premium Shipping enables sellers who handle their shipping to offer expedited shipping options to their customers.

To qualify for Premium Shipping, sellers need to meet the following criteria based on their orders over 30 days:

  • A valid tracking rate of 99%
  • An on-time delivery rate of 97%
  • A seller cancellation rate of less than 0.5%

Once qualified, sellers can provide Premium Shipping options to customers for an additional fee. These options typically include One-Day Delivery and Two-Day Shipping in the United States.

To maintain eligibility, sellers must continue to meet the above requirements for their Premium Shipping orders. Ideally, the valid tracking rate should be 100% (meaning all orders have a tracking number).

While Premium Shipping and Seller Fulfilled Prime Amazon are often discussed together, they serve different purposes.

Premium Shipping allows sellers to offer speedy shipping options to buyers, while SFP provides a way to earn the Prime badge for products without utilizing FBA (Fulfillment by Amazon).

Which products have seen results with Amazon SFP?

A significant number of sellers, approximately 70%, have reported a sales increase of over 20% by utilizing the Prime service. 

In 2018 alone, an impressive 60 million units were delivered to customers through the Amazon Seller Fulfilled Prime (SFP) program, highlighting its comprehensive and impactful capabilities. 

Amazon seller prime is particularly well-suited for a diverse range of products that may be better for FBA or require significant Prime fulfillment investments. These include:

  • Heavy and bulky items like appliances and furniture (FBA fees are determined by size and weight).
  • High-value or fragile items that sellers prefer to minimize touchpoints on.
  • Seasonal or perishable items with limited selling periods, short shelf life, or specific storage requirements.
  • Products with uncertain demand or variation.
  • Fast fashion items.
  • Items with slow sales velocity.
  • Personalized or customized items.
  • Products shipped in multiple boxes.
  • Items with serial numbers.

To apply for Amazon Seller fulfilled Prime, sellers should navigate to the ‘Seller Fulfilled Prime’ section in Seller Central and create Prime shipping templates based on regional or national shipping options

They can then select the products they wish to add to Prime and fulfill orders using the Buy Shipping service. If sellers have carrier discounts, those can be applied using the Buy Shipping tool.

Sellers must complete the Amazon Seller Fulfilled Prime trial by meeting the above performance metrics. Once the trial is completed, Amazon will notify sellers two days in advance, allowing them to prepare for engaging in SFP.

How to determine if a product is FBA or Amazon Seller Fulfilled Prime?

To identify whether a product is fulfilled by Amazon (FBA) or falls under Amazon Seller Fulfilled Prime (SFP), you can observe the Prime badge on the product detail page. There are three ways a product can qualify for the Prime badge:

Sold by Amazon:

If the product is listed as “Ships from and sold by Amazon,” it qualifies for the Prime badge because Amazon is the Seller and handles the Prime fulfillment.

Fulfilled by Amazon (FBA):

If the product is “Sold by a third-party seller and fulfilled by Amazon,” it qualifies for Prime because the Seller utilizes FBA to fulfill the orders. The badge will indicate “Sold by [seller name] and Fulfilled by Amazon.”

Amazon Seller Fulfilled Prime (SFP):

If the product is listed as “Ships from and sold by [seller name],” it is sold by a third-party seller qualified for Amazon Seller Fulfilled Prime. Despite the Seller handling the shipping, the product still allows for the Prime badge as part of the SFP program.

By examining the Prime badge information on the product detail page, you can determine the reason behind a particular product’s eligibility for Prime, whether it is sold by Amazon directly, fulfilled through FBA, or part of the Amazon Seller Fulfilled Prime program.

Valuable tips and tricks to expand your business:

During the Amazon Seller fulfilled Prime Feedvisor webinar co-hosted with Amazon, Skyler Fancher provided resellers with several tips to help them use SFP Amazon quickly and accurately:

  • Shorten your trial period with ten SKUs that change faster. Keep up to date with your reviews to ensure nothing about your listings offends customers. Free 2-day shipping is not required for the trial; Standard shipping is allowed unless the customer has booked two-day shipping or faster.
  • Set up shipping by region to reduce shipping costs. This allows you to navigate to status sections where you want to offer SFPs by assigning specific status parts to selected SKUs.
  • Link your shipping accounts to access rates through Buy Shipping.
  • Monitor your performance. Monitor the three SFP qualification metrics to improve the Prime customer experience. You can also download an error report from Seller Central to determine the cause of the poor performance. Amazon has a dedicated SFP metrics team that can help you if you encounter any issues.
  • Use Prime’s order limit feature to limit your order size. For instance, if you’re starting to expand your business and just wish to place 100 Prime orders daily, you’ll go back to the conventional model 3-5 days after you hit 100 Prime orders.
  • If necessary, press the red button. If you need to pause your SFP programme for whatever reason, this is a quick fix.

Is Amazon Seller Fulfilled Prime Right for My Business?

Whether or not to enroll in the Amazon Seller Fulfilled Prime program is ultimately up to the individual Seller. Balance the program’s expenses and potential benefits to select the best path for your business.

It’s essential to understand the requirements and be prepared to accurately and efficiently execute orders if you decide to sign up for the programme.

You should also be informed of the program’s costs and decide whether they are reasonable given the possible rewards.

With Amazon Seller Fulfilled Prime (SFP), vendors may provide Prime consumers with the same perks they would get through Amazon Prime Fulfilment Services, including free two-day delivery, no-hassle returns, and Prime-only benefits. 

It also provides sellers with additional visibility and exposure by placing their products in the Prime section of Amazon search results.

However, it is crucial to understand the potential costs associated in the program and the specifications for rapidly and precisely completing requests.

After assessing the potential benefits and costs, you may determine if the programme is suitable for your company.

FAQ

Questions about
Amazon Seller Fulfilled Prime

What is the trial period?

To become a part of Amazon Seller Fulfilled Prime, you must undergo a trial period to demonstrate your ability to meet the high standards of Prime fulfillment and customer satisfaction. 

During this trial period, items enrolled in Seller Fulfilled Prime 3PL will not display the Prime badge, but you must process orders with a zero-day handling time. 

After completing the trial period, you’ll be automatically enrolled in Amazon Seller Fulfilled Prime, and the Prime badge will be visible to customers on your enrolled ASINs.

How Much Does Seller Fulfilled Prime Amazon Cost?

Depending on the nature of the items being sold, the cost of the Amazon Seller Fulfilled Prime programme will change. For each order filled through the programme, Amazon typically levies monthly and per-order fees. The price of the payments will vary depending on the volume of the Seller and other elements.

What are the best products for Amazon Seller Fulfilled Prime?

When considering the best products for Amazon Seller Fulfilled Prime (SFP), it’s important to consider certain factors that can contribute to success within the program. Here are a few considerations:

  • Seasonal products or products with unpredictable demand
  • High-value products
  • Variations products
  • Inventory that needs special preparation or handling
  • Slow moving items

The “best” items for SFP will ultimately rely on several variables, including your company strategy, target market, and resources.

 Finding the things most suited for your Amazon seller prime endeavors may be aided by conducting market research, examining sales patterns, and comprehending client preferences.

What does Amazon Seller Fulfilled Prime Small and Light entail?

Amazon Seller Fulfilled Prime Small and Light (SFP Small and Light) is a specialized option for products under $15. 

This variation allows sellers of lower-value items to utilize SFP economically. Unlike the Amazon FBA Prime Small and Light program, SFP Small and Light does not impose any size or weight restrictions.

 

For products valued at $15 or less, SFP Small and Light gives sellers a range of shipping choices, saving them money that might otherwise be spent on high shipping expenses if free shipping were offered.

What is "Buy Shipping," and how can I utilize it?

A vital aspect of the Amazon Seller Fulfilled Prime (SFP) program is using Amazon’s Buy Shipping feature to fulfill orders.

Buy Shipping lets sellers purchase shipping labels individually or in large quantities, fulfill and confirm orders, and track shipments. 

It can be accessed through Seller Central directly or by employing third-party shipping tools that support this feature. 

Additionally, an API is available that allows Buy Shipping integration into your own software systems.

 

Do you require a certain number of orders per month?

 

It depends.

 

We value your business and like to make assessments on a case-by-case basis, so we can find the best fit for your requirements.

 

In most cases, if you’re doing over 100-200 orders per month on Amazon, you will qualify to use our Amazon FBA order fulfillment services. 

Didn’t find your answers? Contact us

Blair Forrest

Blair Forrest

Blair Forrest is the CMO of AMZ Prep. Blair helps provide consulting and guidance through our articles, guides, and other resources to help growing eCommerce & Amazon FBA businesses master their logistics and fulfillment.

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