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What Is Seller-Fulfilled Prime?
Seller Fulfilled Prime (SFP) is an Amazon program that allows sellers to display the Prime badge on their products without using Amazon’s fulfillment centers. This program enables sellers to fulfill orders directly from their own facilities or through a third-party logistics provider, while still offering Prime benefits such as one-day and two-day shipping. Unlike Fulfillment by Amazon (FBA), SFP gives sellers greater control over their inventory and fulfillment processes, potentially reducing costs and increasing operational flexibility.
How Does Seller Fulfilled Prime Work?
To participate in SFP, sellers must adhere to Amazon’s high standards for delivery speed and customer service. During a trial period, sellers must demonstrate their ability to meet these standards by shipping orders promptly and ensuring high customer satisfaction. Successful completion of this trial qualifies the seller to display the Prime badge on their listings, signifying fast, reliable delivery.
How to Determine Which Products Fit Seller Fulfilled Prime
When considering which products to include in the Seller Fulfilled Prime (SFP) program, it’s important to strategically select items that will maximize the benefits of SFP while meeting customer expectations for Prime services. Here’s an approach to choosing the right products for SFP:
High-Value Items: High-value products are particularly well-suited for SFP as they often carry higher profit margins that can absorb the costs of expedited shipping. Additionally, managing these items in-house reduces the risk of lost inventory or shortages, ensuring that high-value goods are always available when customers need them.
Products with Seasonal or Unpredictable Demand: Items with fluctuating demand due to seasonal trends or unpredictable market changes can benefit from the agility that SFP offers. By fulfilling these products yourself, you can quickly adjust inventory and shipping strategies to meet sudden shifts in demand without relying on Amazon’s FBA inventory processes.
Items with Variations: Products that come in various sizes, colors, or styles are ideal for SFP, as they often require precise inventory management to ensure all variations are stocked and visible to customers. Handling these items in-house allows for better control over the stock of each variation, reducing the likelihood of customer frustration due to unavailable options.
Slow-Moving Goods: For items that sell less frequently, SFP offers a way to avoid the high storage fees that can accumulate with FBA. Managing these products through your own fulfillment system allows for more strategic inventory control and minimizes costs associated with long-term storage.
Inventory That Requires Special Handling or Preparation: Products that need special care, precise handling, or specific preparation before shipping are better managed through SFP. This direct oversight ensures that the product quality is maintained, meeting customer expectations for high-quality deliveries.
Large and Oversized Products: Managing large and oversized products through SFP can be particularly advantageous. These items often incur significant fees in FBA due to their size and storage requirements. By fulfilling these orders yourself, you can reduce costs and better control the shipping process. For guidance on how to classify your products based on size, refer to Amazon’s Size Tier Chart which details dimensions and weight limits for oversized items.
What should a seller consider when evaluating Seller Fulfilled Prime?
To participate in Seller Fulfilled Prime (SFP), sellers must navigate through a structured qualification process that includes both pre-qualification and a trial period. To meet these requirements, sellers need to consider several aspects of their fulfillment capabilities:
Fulfillment Capabilities: Evaluate whether your current infrastructure can handle the demands of SFP, particularly the requirement for fast, reliable shipping. This includes assessing whether you have enough space, manpower, and logistical support to prepare and ship orders swiftly.
Partnerships with 3PLs and Carriers: Many sellers may find that partnering with third-party logistics providers (3PLs) and reliable carriers is necessary to meet Amazon’s stringent shipping and delivery standards. These partnerships can help ensure nationwide coverage and adherence to the one-day and two-day delivery commitments required by SFP.
Technology and Automation: Implementing the right technology is crucial for managing the increased operational demands of SFP. Consider investing in advanced inventory management software and order processing systems that can automate tracking updates, handle shipping labels, and ensure that orders are dispatched on time. These systems should integrate seamlessly with Amazon’s platform to maintain the required tracking and cancellation rate standards.
What are the requirements for Seller Fulfilled Prime?
Enrolling in Seller Fulfilled Prime (SFP) involves a detailed pre-qualification and trial period designed to assess a seller’s ability to meet Amazon’s delivery and service standards. Here’s an overview of the steps and criteria involved:
Pre-Qualification Criteria:
To begin the SFP trial, sellers must first meet specific pre-qualification requirements:
● Domestic Shipping Address: Must have a domestic US address listed as the default shipping address.
● Amazon Professional Selling Account: Sellers need to have an active Amazon Professional selling account.
● Performance Metrics Over the Last 90 Days:
● Must have self-fulfilled at least 100 packages.
● Maintain a cancellation rate of less than 2.5%.
● Achieve a valid tracking rate of greater than 95%.
● Keep a late shipment rate below 4%.
Trial Period Requirements:
Once pre-qualified, sellers enter a trial period where their ability to consistently meet SFP standards is tested. To successfully pass the SFP trial and become an enrolled seller, the following criteria must be met during a 30-day trial:
● Ship at Least 100 Prime Trial Orders: During the trial, sellers must handle a minimum of 100 orders under the Prime trial.
● On-Time Delivery Rate: An on-time delivery rate of at least 93.5% is required.
● Valid Tracking Rate: Must maintain a valid tracking rate of at least 99%.
● Cancellation Rate: The seller-initiated cancellation rate must be less than 0.5%.
● Delivery Speeds: Must meet minimum thresholds for one-day and two-day delivery
speeds as expected by Prime customers, which is assessed through customer detail page views.
Successfully meeting these criteria during the trial period is crucial for gaining full enrollment into the Seller Fulfilled Prime program, allowing sellers to display the Prime badge on their listings and promising fast, reliable delivery directly managed by them.
Quick start guide for sellers to evaluate Seller Fulfilled Prime
Assess Your Eligibility: Review the detailed requirements for SFP on Amazon’s Seller Central to ensure your business can comply.
Understand the Costs: Calculate the potential costs involved in upgrading your shipping and handling capabilities to meet Prime standards.
Prepare for the Trial: Plan how you will handle the logistics during the trial period to ensure you can meet Amazon’s shipping requirements consistently.
Seek Feedback: Consider reaching out to existing SFP sellers to learn about their experiences and gather insights on best practices and common challenges.
Are you ready to further explore Seller Fulfilled Prime?
For a detailed review and assistance in setting up SFP for your business, get in touch with Brands Excel. With over 7 years of SFP experience, Matt Snyder can provide you with a full audit of your current operations and guide you through the SFP setup process to enhance your success on Amazon.
To book a free 30-minute consultation, complete our questionnaire form, click here.
FAQ
Q: What are the pre-qualification criteria to start the Seller Fulfilled Prime trial?
● Have a domestic US address as your default shipping address
● Have an Amazon Professional selling account
● Meet the following criteria over the past 90 days:
● Self-fulfilled at least 100 packages
● Cancellation rate less than 2.5%
● Valid tracking rate greater than 95%
● Late shipment rate less than 4%
Q: What are the criteria to pass the Seller Fulfilled Prime trial and become an enrolled seller?
● Participate for 30 days
● Ship 100 or more packages from Prime trial orders
● An on-time delivery rate of at least 93.5%
● A valid tracking rate of at least 99%
● A seller-initiated cancellation rate of less than 0.5%
● Meet minimum thresholds for one-day and two-day delivery speeds as viewed by Prime customer detail page views
Q: What are the requirements for Seller Fulfilled Prime as an enrolled seller?
● Free one-day and two-day delivery for Prime customers
● Free nationwide standard shipping for all customers
● Meet minimum thresholds for one-day and two-day delivery speeds as viewed by Prime customer detail page views
● An on-time delivery rate of at least 93.5%
● A valid tracking rate of at least 99%
● A seller-initiated cancellation rate of less than 0.5%
● Ship and deliver Prime orders on weekends (Saturday, Sunday, or both)
● Offer Free Returns on items weighing under 50 lb
● All post-order customer service inquiries are managed by Amazon