Amazon Seller Fulfilled Prime (SFP) which was put into effect in 2015 is a new type of fulfillment option that allows the Amazon Prime badge to be shown on certain orders that sellers, who own Professional Selling accounts, fulfilled with the use of their own warehouses or other 3PL managements.
This program is basically another way for sellers to obtain Prime status without having to rely on Fulfillment by Amazon (FBA).
Amazon stated that “Seller fulfilled listings that became Prime-eligible for the first time through Seller Fulfilled Prime experienced an average sales uplift of more than 50%.” And with that kind of numbers, the program would definitely be an asset to online sellers.
However, in order for Amazon sellers to be eligible for SFP, they must strictly comply and meet all of Amazon Prime’s requirements and criteria.
It is also important to determine whether or not a particular business should get SFP as the program’s usefulness and eligibility is highly dependable on the type of seller as well as the products they provide.
Some questions that online sellers ask themselves before applying for this program are:
- Am I qualified for SFP?
- Can I maintain my eligibility?
- Will it be beneficial to my business?
- What are the downsides to the program?
These questions can help businesses decide if it is worth it to go through the hurdles needed in order to switch to SFP.
What are the Qualifications needed for Seller Fulfilled Prime?
There are a lot of things to take note of before even thinking about applying for SFP. In short, however, the prerequisites/steps needed for the program are:
- Have an Amazon Professional Seller account
- Be qualified and maintain Amazon Premium Shipping
- Enroll in Seller Fulfilled Prime (undergo a trial period)
- Meet the SFP performance requirements
- Must agree to a number of specific program terms for Prime items
Going into detail, in order to be eligible for Amazon Premium Shipping, the online seller must have:
- An on-time delivery rate of at least 92% for Premium Shipping orders
- A valid tracking ID for at least 94% of Premium Shipping orders
- A cancellation rate of less than 1.5% for Premium Shipping order
It is worth noting that having eligibility for Premium Shipping is not required to participate in the SFP trial, however, it is essential that the seller does so if they want to acquire the Seller Fulfilled Prime program.
During the SFP trial period, which lasts anywhere between 5 to 90 days, there are performance requirements that should be met on a minimum of 200 Prime trial orders, and these are:
- An On-Time Shipment Rate of at least 99% for Prime trial orders. Regardless of the shipping speed selected by the customer, Prime trial orders must be shipped on the same day the order is received, as long as the customer places the order before the cutoff time.
- Use of Buy Shipping Services for at least 95% of Prime trial orders.
- A Cancellation Rate of less than 1% on Prime trial orders.
If the seller does not meet the requirements within 90 days, the SFP trial period will reset and they are free to try again.
Completing both the SFP trial and becoming eligible/maintaining Premium Shipping will automatically qualify the seller to SFP.
Finally, sellers must adhere and agree to Amazon Prime Terms.
All information provided can be found on Amazon’s website and it is recommended that you refer to it in order to get a more in-depth look at the Seller Fulfilled Prime qualification process.
Why Use Amazon SFP?
There are many reasons why some online sellers want to make the switch and start using Amazon Seller Fulfilled Prime, some of which are:
- Access to over millions of Amazon Prime members that can drastically increase sales
- Not needing to pay FBA shipping, handling and inventory storage fees
- Earn more profits (on big/heavy products)
- Having more control on returns collection
- And more…
Basically, Amazon SFP allows sellers to gain access to sales and profits that are inaccessible to those without it.
What does this mean for Fulex?
As an internet/ecommerce fulfillment company, we here at Fulex take pride in our ability to give businesses honest, reliable and excellent order fulfillment services. Giving businesses the ability to access technology, tools and services at affordable prices makes Fulex the best fulfillment provider to boost your business’ success.
SFP was made for companies with a solid background on delivering items on time.
Using Amazon SFP, we can satisfy our consumers without having to go through the troubles that come with FBA. We can manage the entirety of the process so that while we’re relieving you of your logistical headaches, you can focus on growing your business.
With the use of these tools, not only can we skillfully manage your “behind the scene” logistical operations, we can also provide order fulfillment service that gives your business the opportunity to success.
Contact Us to discuss your fulfillment needs.