A complete guide on Amazon Seller Fulfilled Prime (SFP)
Amazon, being the largest online marketplace has redefined and revolutionized the way e-commerce market executes. We all are aware of the fact that Amazon has a buyer-centric policy as it believes in maintaining the long-term relationship with the customers, especially with the Amazon Prime Subscribers. Following this notion, it provides multiple options to the Amazon sellers, to provide incredible services to its shoppers while generating higher revenue for themselves.
A retailer can easily realize the significance of selling on Amazon with exposure to his/her virtual marketplace to billions of Amazon shoppers. Amazon esteems both sellers and buyers, and that's why it offers broadly two types of shipping option to sellers: 'Fulfilment by Amazon' and 'Fulfillment by Merchant', under this category there are several shipping options to smoothly deliver products to its shoppers without any delay.
One of these shipping options is "Amazon Seller Fulfilled Prime" (SFP). So let's set on an excursion to understand this shipping option.
What is the "Amazon Seller Fulfilled Prime" shipping option?
Amazon SFP comes under the 'Fulfilment by Merchant' category. Under this shipping option, sellers fulfill orders by their own but by using a Prime badge, meaning a seller will have access to Amazon Prime customers. If a seller opts for this option, then he/she must provide standard shipping services to the customers. Since Amazon provides accessibility to prime customers under this option, it is not open for every seller.
What are the requirements for Amazon SFP?
Amazon under this option provides access to the prime badge, which clearly indicates that it's quite tricky to have access to this option. Amazon has set some high-standards and, even after meeting those standards, a seller has to fulfil the other two criteria that are:
- Pass the trial period.
- Qualify for Premium shipping.
Point to remember here is that during the trial period, sellers do not get the prime badge. Once they complete the trial period successfully, they qualify themselves for SFP and get the prime badge.
For enrolling in this SFP shipping method, Amazon sellers must comply with the following requirements which are:
- Have a professional seller account on Amazon.
- Must ship 99% of your orders on time.
- Maintain a valid tracking rate of 99%
- Premium shipping offers to customers.
- Having 0.5% or less collection rate.
- Must utilize Amazon’s Buy Shipping at least 98.5% of your orders.
- Withstand with Amazon’s return policies
- Should deliver orders with Amazon approved Seller Fulfilled Prime carriers.
- Allow Amazon to handle all the customer's queries.
- Capability to fulfil orders with “zero-day” handling time.
For initializing the process of accessing the SFP, an Amazon seller must comply with all these requirements and have to pass the trial period. Even though currently there is a waitlist for the SFP program; as soon as it opens you will have to enroll yourself for SFP program and will have to pass the trial period which is for 5 to 90 days with 200 minimum order to get SFP status.
Benefits of Amazon Seller Fulfilled Prime
- Enhanced exposure on Amazon - Amazon SFP program comes with a prime badge, as soon as you manage to enlist yourself in this program yourself in this you get the access to connect with Amazon prime shoppers who are the biggest spenders on Amazon, along with the regular shoppers, increasing your visibility on the platform. The prime badge also helps you to gain the trust of shoppers as it signifies that the products are of high quality and are reliable. It helps you to generate leads and by blending it with the effective advertisement campaign you can boost your conversion rate.
- Enjoy more control over inventories - Unlike FBA, a seller can enjoy more control and access over his/her inventory. If you are an SFP seller you can use a prime badge without shipping your inventory to the Amazon fulfilment centre, meaning you get complete access over your inventory without intervention and can ship to customers directly from your warehouse. It is beneficial if you have a marketplace on other e-commerce platforms and if you deal with some seasonal products whose sales spikes on occasions like Amazon prime day, Festive season etc.
- Eliminates storage and shipping costs - In FBA, Amazon sellers have to pay a fee for acquiring the space in Amazon warehouse, that keeps fluctuating whereas, in SFP, a seller has full control over storage costs. Similarly, in FBA sellers have to bear the cost of freight to get the inventory to the Amazon warehouses and thus by using SFP, sellers can eliminate the inbound ship cost. Yet the catch here is, it is highly beneficial to only those Amazon sellers who have coordinated their supply chain competently and have a good grasp on their sales predictions ability.
- Flexibility for product modifications - The last-minute modifications in the product's accessories or the packaging is not uncommon in the business. Often, sellers need to make some modifications like including product pamphlets or some card etc. And that's where SFP is useful because it allows flexibility for product modifications. Since Amazon has to manage the shipping of millions of products in a single day, they can't comply with the last minute requests of FBA sellers.
- Availing Amazon's customer support services - Another perk of opting for SFP program is that its sellers, as well as customers, can easily connect with Amazon's customer support service after sales for any kind of query. The customer service team of Amazon is highly proficient which makes the whole process of solving the customer's or seller's queries easy and quick. The professionals there provide incredible services on the seller's behalf. Furthermore, customers can track their item orders, submit returns, and request for refunds without any dispute.
Every side has two coins if Amazon SFP bestows with the benefit then there are some drawbacks too which are as follow:
- Amazon SFP status maintenance - Above we have already discussed the requirements for obtaining Amazon SFP status, those requirements are needed to be fulfilled consistently to maintain the status of SFP sellers, which is quite a troublesome task and if not comply, Amazon can suspend your SFP status and remove your prime badge which is not good for the brand's image.
- High shipping rates - When Amazon gives you a prime seller badge under SFP program, it expects you to ship either on the same day or within two days to make sure that it reaches before the time. Now definitely for this, you need exceptional carrier services which come with a high price.
- Difficulty in managing huge numbers of orders - As you spend some time as Amazon SFP seller, your orders keep increasing making it extremely difficult for you to manage these number of orders while ensuring that your shoppers receive the best especially if your fulfilment structure is not up to the mark; leading to the peeling off of prime seller badge, if you failed to satisfy customers.
For making the most of Amazon SFP program, sellers need to be proficient and should formulate proper fulfilment structure. Amazon offers many shipping options and selecting the ideal alternative for your business all counts on the products you sell and the manner you want to handle your business activities.
Amazon is full of opportunity and, with effective planning, you can optimize it to its maximum.
To support the sellers, Amazon has its own Service Provider Network that assists the Amazon sellers in carrying out their business operations while complying with the guidelines issued by Amazon.
Evantage is one of the best Amazon Service Providers that supports this entire chain of events leading to marketing and demand generation for your Amazon store, excellently. We dispense the wealth of our experience to provide you with the best Amazon E-commerce solutions.
Lead your journey with us!!