The Orca Pacific Blog

Amazon Seller Fulfilled Prime: Quick & Easy Guide

Article by: Lauren Stair

In the dynamic world of Amazon selling, staying ahead of the curve is crucial. One way to do this is by leveraging Amazon Seller Fulfilled Prime (SFP), which allows sellers to fulfill their own orders while still offering Prime benefits to customers. This unique program gives sellers the autonomy to manage their inventory and logistics, while also displaying the coveted Prime badge on their listings.

Understanding Amazon Seller Fulfilled Prime

Amazon SFP is a program that enables sellers to deliver directly to domestic Prime customers from their own warehouse. By displaying the Prime badge, sellers commit to fulfilling orders with One-Day and Two-Day Delivery at no additional charge for Prime customers. This program is a boon for sellers as it provides access to Amazon’s vast network of Prime members, increasing visibility and discoverability of their products. It’s like having your cake and eating it too – you get to control your inventory and logistics while also enjoying the benefits of Prime.

Distinguishing SFP from Other Amazon Shipping Options

The key difference between Seller Fulfilled Prime and Fulfilled by Amazon (FBA) lies in the shipping process. While FBA handles shipping, SFP sellers are responsible for fulfilling orders and paying for shipping. This can be a more cost-effective option for sellers with large, heavy, or slow-moving items that may incur high FBA fees.

In contrast to Fulfilled by Merchant (FBM), SFP offers the Prime badge, more buy box power, and SEO perks, making it a more attractive option for sellers looking to boost their sales. It’s a unique option for sellers who are looking for the control that FBM offers yet with the benefits of FBA.

Table showing differences in Amazon FBA, FBM, and SFP shipping options

The Benefits of Amazon Seller Fulfilled Prime

SFP offers a host of benefits for sellers. It allows sellers to reach Amazon’s most loyal customers, compete more effectively for the featured offer, and offer Guaranteed Delivery Date messaging. This program is particularly beneficial for high-value items, products with seasonal or unpredictable demand, items with variations, slow-moving goods (for example, large furniture or appliances which may otherwise sit in fulfillment centers and accrue storage fees), and inventory that requires special handling or preparation.

Moreover, SFP allows sellers to maintain control over their inventory in one place, which can be crucial for managing costs and ensuring product quality. By handling their own storage and shipping, sellers can directly manage their inventory levels, reduce storage fees, and ensure their products are handled and packaged to their standards.

The Challenges of Seller Fulfilled Prime

While SFP offers numerous benefits, it also comes with its own set of challenges. Sellers must ship items the same day, buy shipping labels via Amazon, consistently hit performance metrics, and use Amazon-approved shippers. Additionally, sellers must absorb the costs of shipping, which can be a significant expense.

However, these challenges can be mitigated with careful planning and efficient operations. For instance, sellers can negotiate competitive shipping rates with carriers, invest in efficient packaging solutions, and use inventory management systems to ensure timely order fulfillment.

Eligibility and Trial Period for Sellers

To qualify for SFP, sellers must meet several eligibility requirements, including offering Premium Shipping Options, having an order cancellation rate of less than 0.5%, and using Amazon Buy Shipping Services for at least 99% of orders.

Before enrolling in SFP, sellers must complete a trial period to demonstrate their ability to meet the requirements for Prime fulfillment excellence and customer satisfaction. The trial period lasts between 5 and 90 days, and a minimum of 200 orders must be fulfilled. This trial period allows sellers to assess whether SFP is the right fit for their business without making a long-term commitment.

Final thoughts

Amazon Seller Fulfilled Prime can be a worthwhile program for sellers looking to maintain control over their inventory and logistics while still offering Prime benefits to customers or those who Fulfilled by Amazon does not work for. While SFP comes with its’ own benefits and challenges, sellers who are already fulfilling products themselves may want to consider this option.

As the Amazon marketplace continues to evolve, programs like SFP offer sellers additional ways to stay competitive and meet the ever-changing needs of their customers. If Seller Fulfilled Prime sounds right for your business, consider joining the waitlist for Amazon Seller Fulfilled Prime.

For more insights and tips on succeeding as an Amazon seller, reach out to our team of ecommerce experts and stay ahead of the curve.

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