March 23, 2019

Amazon Seller Fulfilled Prime (SFP): All You Need to Know

If you are a seller on Amazon, it is important to have a clear understanding about Amazon Seller Fulfilled Prime (SFP). It is the order fulfilment method, where the qualified sellers on Amazon are provided with the opportunity to fulfil the orders through their own warehouses. They can also seek the assistance of third-party service providers when fulfilling the orders. However, only the selected sellers with professional seller accounts, who have Amazon Prime badge will be able to go ahead with it

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What are the Seller qualifications?

As mentioned earlier, there are some qualifications, which you need to fulfil in order to be eligible for Amazon Seller Fulfilled Prime (SFP). Below mentioned is a list of the eligibility requirements. They are evaluated every 30 days.

  • You need to have an on-time delivery rate of over 99% of premium orders.
  • You must have a cancellation rate of under 0,5% for premium orders.
  • You must use Amazon Buy Shipping Services for at least 98.5% of orders.
  • Full compliance with Amazon’s return policy.
  • You must arrange delivery of orders using recommended Amazon carriers.
  • Customer service requests are handled by Amazon.

Among other requirements: the presence of a professional account, the presence of its own warehouse where goods are stored, in the region where you will sell them, and others.

To convince Amazon that you fully meet these criteria, you must complete a trial period.

Its duration can be from 5 to 90 days. It depends on how quickly you can convince Amazon that you meet their requirements as a seller of Fulfilled Prime. You have to understand that until you get seduced by Azon, the Prime badge on your product will not be displayed.

How the program works?

An important difference between this program and others is that you process, package and ship the received orders yourself. Therefore, you must ensure that they are not only properly packed, but also shipped on time (dispatch on the day the order is received).

In this case, you will be able to meet the requirements of delivery orders up to two days. And that is why the warehouse with your goods should be located in the region where you plan to sell goods.

After the trial period is over and you become a member of the program, you need to:

  • process incoming orders;
  • take care of labeling according to the requirements of Amazon;
  • collect the order in your warehouse, pack it and send it on the same day.

Delivery of your goods to the buyer will be performed by the selected transportation services.

Keep in mind that you need to purchase shipping labels from Amazon approved carriers.

Are there any additional fees?

By participating in this program, you will not pay any additional fees, except for the basic fees of Amazon.

But you must understand that the cost of shipping goods is paid by you, not the buyer. Therefore, make sure that the price of goods covers your expenses.

Should you consider SFP?

If you are a seller, who has a clear understanding about your customer base, you can go ahead with the SFP. However, you need to take your time and figure out how your customer base looks like. You can get more information about this from the data that you can retrieve through Amazon Seller Central Individual Plan. You must also do a research to figure out if your competitors are selling with SFP as well.

What benefits can you experience with Seller Fulfilled Prime?

Amazon sellers will be able to experience a large number of benefits with SFP. Here are some of the most prominent benefits out of them.

  • You will be able to gain comprehensive access to the prime customer base on Amazon. This can help you to increase the sales conversion in an effective manner.
  • You can gain complete control over the inventory. Therefore, you can refrain from the hassle that you have to go through in order to send your stocks to Amazon.
  • You can get the assistance of third-party logistics service providers, who have a clear idea on Amazon logistics Germany. Then you will be able to overcome the issues linked with Amazon logistics EU and improve your profit margins.
  • You will be provided with all the Buy Box Privileges that are offered to the FBA sellers on Amazon.
  • You don’t have to spend money on the FBA shipping as well as handling expenses.
  • You shouldn’t worry about the long-term FBA storage fees. They are now being calculated on a monthly basis.
  • You have full control of the amount of inventory in stock. If you sell products not only on Amazon, you can easily control their stock availability.
  • You can sell some of the products, which are ineligible to offer via FBA.
  • You can create a more seamless product returning process.

Today to register for this program is quite difficult. You can apply for participation in the program and get into the waitlist. And when the registration in the program will be open again, you will receive notification of this.