Imagine offering two-day Prime shipping without relying on Amazon’s warehouses for fulfillment. Well, guess what? Amazon has made it possible through its game-changing program called Amazon Seller Fulfilled Prime. Thanks to it, sellers can now seize the Prime advantage and elevate their business to new heights on Amazon.
Get ready to explore the unrivaled opportunities offered by Amazon Seller Fulfilled Prime! This article will cover the following:
- How does Seller Fulfilled Prime work?
- How to succeed in Amazon Seller Fulfilled Prime – A-Z guide
- Best practices for success with Amazon Seller Fulfilled Prime
Wait no more! Let’s dive right in if you want to thrive in this top marketplace for selling products.
Updating: On June 13, 2023, Amazon announced in Seller Central that they would be reopening new seller enrollment for the Seller-Fulfilled Prime (SFP) program later this year.
What is Seller Fulfilled Prime?
Seller-Fulfilled Prime (SFP) or Merchant Fulfilled Prime is a program that empowers FBM sellers to provide one-day and two-day Prime shipping directly from their own warehouses or through a third-party fulfillment center. It differentiates itself from Amazon’s Fulfillment by Amazon (FBA) program, where Amazon takes charge of fulfillment operations. If you want to know the differences between FBM vs FBA, check our article about the related topic.
By joining in Seller Fulfilled Amazon Prime, sellers can:
- Control over inventory and fulfillment
- Gain Prime Badge to attract Prime members and customers who prioritize Prime-eligible products
- Increase sales performance and improve conversion rates
- Have a greater chance to win the Buy Box
- Access Lightning Deals to grow your business
- Have Amazon handle 24/7 after-sale customer service
In case you want to join Amazon Seller Fulfilled Prime, having the ability to provide one-day and two-day is not enough. Keep reading to know how to be eligible for this program.
Amazon Seller Fulfilled Prime requirements
First, check out our Amazon FBM guide to set up your FBM business. To qualify for Amazon Seller Fulfilled Prime, sellers must fulfill specific criteria to deliver exceptional service and ensure a seamless Prime experience. These criteria encompass:
- Provide premium shipping options
- Ensure on-time shipment of over 99% of orders
- Maintain an order cancellation rate of less than 0.5%
- Utilize Amazon Buy Shipping Services for at least 99% of orders
- Offer nationwide delivery coverage for all standard-size products
- Use shipping methods that support weekend delivery and pick up, including Saturdays and Sundays
- Meet targets for 1-day and 2-day delivery commitments
- Deliver orders through supported Seller Fulfilled Prime carriers
- Comply with the Amazon Returns Policy
- Let Amazon handle all the customer service inquiries
To remain eligible for SFP, sellers must consistently meet the Seller Fulfilled Prime requirements. Suppose the Seller Fulfilled Prime Shipping rates or cancellation rates fall below Amazon’s criteria at any point. In that case, the Prime badge will be removed from the affected listings, and eligibility for SFP may be revoked.
Amazon Seller Fulfilled Prime costs
You can join Amazon SFP without paying a fee for the marketplace. However, there are fees associated with it. The expenses associated with Seller Fulfilled Prime include the shipping charges from authorized carriers, like Amazon Shipping, along with the Amazon seller fees.
Plus, joining Amazon Seller Fulfilled Prime means you will utilize your own warehouse. So there might be other expenses you need to pay related to running the warehouse, such as rent, utilities, and staffing. Alternatively, if sellers choose to use a third-party fulfillment service, they will be responsible for the fees charged by the service provider.
How to Success in Amazon Seller Fulfilled Prime – A-Z Guide
#Step 1: Prepare for registration
Ensuring inventory availability and shipping capabilities
Prior to sign up for Prime:
- Have in your mind the idea of which items you will sell. Be sure you have sufficient inventory to meet customer demand.
- Implement efficient inventory management practices to avoid stockouts and ensure timely order fulfillment.
- Determine all the possible shipping options you have and select carriers that offer reliable and cost-effective services.
- Ensure that you can meet Amazon’s shipping requirements, including fast and trackable shipping methods.
Setting competitive pricing strategies
If you want to determine the optimal pricing for your products, it is essential to conduct comprehensive market research. This research should encompass several key factors, including:
- Product-based cost
- Competitor prices
- Amazon seller fees
- Customer preferences
When developing your pricing strategies, prioritize striking a delicate balance between competitiveness and profitability. This approach will ensure that your prices appeal to customers and generate acceptable margins.
If you’re searching for products that require a small upfront cost and offer a significant profit, you can refer to books.
Organizing shipping processes and carrier partnerships
To effectively organize Amazon Prime shipping processes and establish carrier partnerships for Amazon Seller Fulfilled Prime, it is crucial to streamline your shipping workflows. This involves implementing efficient management systems for Amazon Prime orders in cart, optimizing packaging procedures, and ensuring accurate tracking and delivery updates.
Collaborating with trusted carriers is another key aspect. Having partnerships with trustworthy carriers can ensure smooth and timely transportation of your products. You start by researching and identifying the carriers that offer reliable and cost-effective shipping options aligned with your business needs.
If you do Amazon dropshipping, don’t forget to maintain effective communication with your partner. You can regularly communicate shipping requirements, expectations, and any updates in shipping procedures with the carrier. This helps to establish a strong working relationship and ensures that both parties are aligned in providing exceptional shipping services to your customers.
Integrating shipping software in another way to simplify the shipping process. Choosing a software solution that seamlessly integrates with your eCommerce platform can help streamline your shipping process. This will enable you to automate shipping tasks, generate shipping labels, and efficiently manage order tracking.
Securing sufficient storage and warehouse facilities
Efficient inventory management requires assessing your storage needs and ensuring sufficient space to accommodate your stock. You must evaluate the adequacy of your current warehouse facilities or acquire additional storage space. Alternatively, you could collaborate with a third-party fulfillment center that complies with Amazon’s requirements if you prefer not to manage warehousing yourself.
By completing these steps and addressing these considerations, you will be well-prepared to move forward with the registration process for the Amazon Seller Fulfilled Prime program.
#Step 2: Set up seller-fulfilled prime program
Before getting started, sign in your Amazon seller account or register for an account if you don’t have one.
Enrollment for Seller-Fulfilled Prime is scheduled to reopen in 2023. If you would like to receive notifications regarding the acceptance of new applications, we recommend joining the waitlist. This will ensure that you stay informed about the enrollment process and have the opportunity to apply for Seller-Fulfilled Prime when it becomes available. Don’t forget to enroll in the Seller-Fulfilled Prime program on the opening day.
After that, you should adjust delivery settings to be in line with the program policy. Follow the below steps:
Accessing the Amazon Seller Central platform, navigating to the Settings section.
Selecting Shipping Settings.
At Shipping Templates, Hit Create New Shipping Templates button.
Name the template then tick the Prime delivery box
Choose Parcel Shipping, then click Next.
Tick the Prime Shipping box, choose the Warehouse address.
Then, pick the Prime Carrier you prefer to work with.
Hit Next and choose the type of Domestic Shipping you can offer: Two Day Shipping or One Day Shipping.
Click Confirm when you’re done.
Note: You must assign at least one SKU to your Prime template in order to start participating in Amazon Seller Fulfilled Prime. You can always add or change enrolled SKUs using the Manage Inventory or Add Products via the Upload feature.
#Step 3: Get a trial period for performance evaluation
To qualify for Amazon SFP, sellers need to undergo a trial phase that lasts between five to 90 days. During this trial period, sellers must fulfill 200 FBM (Fulfilled by Merchant) orders while adhering to Amazon’s stringent shipping requirements. Within the trial period, sellers can fulfill trial orders and demonstrate their capability to meet Amazon’s fulfillment standards.
Throughout the trial period, sellers are expected to offer Premium One-Day to Two-Day delivery options to showcase their ability to fulfill orders promptly. It’s important to note that the Prime badge will not be visible on listings during this trial period, and sellers are required to process orders with a handling time of zero days.
#Step 4: Launch seller fulfilled prime Amazon
Once you have successfully completed the registration and trial period, you are ready to launch your Seller-Fulfilled Prime listings on Amazon. To maintain eligibility for the program, it’s crucial to continuously oversee and handle your performance metrics. Moreover, you should ensure you have accurately listed inventory, competitive prices, and clearly displayed shipping options to provide exceptional service to Prime members.
Best Practices for Success with Seller-Fulfilled Prime
1. Efficient inventory management
Efficient inventory management is crucial for sellers who participate in the Amazon Seller Fulfilled Prime program to ensure they meet Amazon’s strict performance requirements. Here are some tips for efficient inventory management in Amazon SFP:
- Use inventory management software to keep track of stock levels.
- Set up alerts to notify you when inventory levels are low.
- Create a reordering schedule to ensure you always have enough stock on hand.
- Use Amazon’s tools and reports to monitor your inventory levels and sales performance.
- Optimize your fulfillment process to reduce the time it takes to process and ship orders.
- Use a barcode system to track inventory and avoid mistakes.
- Regularly review and update your inventory listings to ensure accuracy.
- Choose products that have a high demand and sales velocity. Ideally, you want to choose products that have a steady flow of orders, allowing you to pass the trials quickly.
2. Streamlined order processing and fulfillment
Streamlining order processing and fulfillment is particularly important for sellers participating in the Amazon Seller Fulfilled Prime program. This is because there are strict Amazon Seller Fulfilled Prime requirements for order processing and delivery times. Here are some tips for streamlining order processing and fulfillment in SFP:
- Use an order management system that integrates with Amazon’s API to automate order processing and fulfillment tasks, like printing packing, and shipping labels.
- Set up a standardized process for order processing to ensure consistency and reduce errors.
- Use a barcode system to track inventory and ensure accurate order fulfillment.
- Optimize your shipping process by selecting the right carriers and shipping methods to meet Amazon’s delivery expectations and reduce costs.
- Consider outsourcing fulfillment to a third-party logistics provider specializing in Amazon SFP to reduce costs and improve efficiency.
- Provide customers with tracking information and communicate delivery updates to reduce customer inquiries and support requests.
3. Excellent customer service
Since Amazon assists with customer service for Seller-Fulfilled Prime orders, sellers should work closely with Amazon to ensure that customer inquiries are well-handled. Here are some additional tips for providing excellent Prime customer service:
- Provide customers with accurate and up-to-date product information, and ensure that your product listings comply with Amazon’s policies and guidelines.
- Follow Amazon’s return and exchange policies to ensure customers are satisfied with their purchases and have a positive experience.
- Add a thank-you card to the SFP packages. This is a simple way to show appreciation to customers and can help build a stronger relationship with them. The card can include a personalized message, a discount code for their next purchase, or a request for a product review.
4. Performance metrics and issues
Maintaining good performance metrics is necessary for sellers participating in the SFP. Here are some tips for managing performance metrics and issues in SFP:
- Check your metrics regularly and take action to address any issues promptly.
- Keep accurate records of your shipments and ensure that you are meeting Amazon’s delivery requirements.
- Monitor your performance metrics, such as order defect rate, cancellation rate, and late shipment rate.
- Continuously improve your processes and procedures to minimize errors and improve efficiency.
- Ensure accurate product descriptions, and use quality packaging materials to To reduce order defects.
- Keep inventory up to date and use reliable shipping carriers to reduce cancellations and late shipments.
- Work with Amazon to address any performance issues and ensure you remain eligible for SFP.
Amazon Seller-Fulfilled Prime – FAQs
- What is Amazon Seller-Fulfilled Prime?
Amazon Seller Fulfilled Prime (SFP) is a program that allows sellers to display the Prime badge on their listings while fulfilling orders themselves. Unlike Fulfillment by Amazon (FBA), where Amazon handles product storage, packing, and shipping, SFP sellers are responsible for these tasks.
- How can sellers participate in Seller-Fulfilled Prime?
To participate in Seller-Fulfilled Prime, sellers must meet specific eligibility criteria and go through a trial period. During the trial, sellers must fulfill orders with Amazon’s strict shipping requirements. Sellers can enroll in Amazon Seller Prime through the Amazon Seller Central platform.
- What are the benefits of Seller-Fulfilled Prime for sellers?
Amazon Seller Fulfilled Prime offers several benefits to sellers. With SFP, sellers retain Prime Badge for their products like those of Amazon private labels or FBA. They gain access to Amazon’s vast Prime customer base, increasing their visibility and sales potential. Sellers can avoid FBA fees and control their inventory and shipping processes more. Additionally, SFP allows sellers to compete for the Buy Box and potentially offer competitive pricing to attract customers.
If you are first time hearing of Amazon private labels, read our article about Amazon vs Amazon Marketplace for more information.
- Can Seller-Fulfilled Prime sellers use Amazon's customer support?
Yes, Seller-Fulfilled Prime sellers can use Amazon’s customer support to handle customer inquiries and issues. All customer service inquiries are redirected to Amazon, allowing sellers to focus on fulfilling orders and maintaining inventory. This ensures that customers receive the same level of support and assistance as they would with FBA sellers.
Conclusion
Amazon Seller Fulfilled Prime allows sellers to display the Prime badge on their listings while handling fulfillment themselves. It provides access to Amazon’s Prime customer base, control over inventory and shipping, and the ability to compete for the Buy Box. So, if you want to succeed in Amazon SFP, Understanding the program’s requirements and benefits is crucial.
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