Amazon is the only online platform that offers you different ways to increase your online presence. Highlight your products in Amazon and it can be seen by millions of shoppers. Amazon is working hard towards strengthening its algorithm so that buyers and sellers could come together. Also, it has implemented better ways so that sellers and buyers can do an online transaction in better ways.
One of the Amazon Programs that sellers are recently focusing on and taking leverage of is Seller Fulfilled Prime (SFP). This program is said to have more impact than FBA. It helps fulfillment to run smoothly and at a very lower price compared to FBA.
What is Seller Fulfilled Prime (SFP)?
Seller Fulfilled Prime was launched in 2015 and is a program designed for Amazon sellers holding the professional selling accounts. Amazon sellers with Sellers Fulfilled Prime use the Amazon Badge on their product listings without the need to use the FBA (Fulfillment by Amazon). The customer orders are fulfilled by the seller itself using their own warehouses or the third-party logistics.
Through Seller Fulfilled Prime a seller can target any location of his choice and offer Prime in areas which he feels makes sense and may bring him more profit. For example, a seller can use Sellers Fulfilled prime for orders that are located close to their warehouse and use FBA or traditional fulfillment for other distant locations orders.
How you can qualify for Seller Fulfilled Prime (SFP)?
To participate in the SFP program a seller has to meet the following requirements:
- Offer your customers with Premium Shipping options
- 99% of your orders should be fulfilled on time.
- Order Cancellation rate should be below 0.5%.
- Use the Amazon Buy Shipping Services for at least 98.5% of your orders
- Deliver Orders through logistics supported by SFP.
- Abiding the rules of Amazon Returns Policy.
- Allow Amazon to handle your customer service inquiries.
If you meet all the requirements mentioned above then you can start the trial period to show Amazon that you can handle all the orders very efficiently. During the trial period, you won’t get the Prime Badge. But you must fulfill the orders as if you have the Badge. You should also be aware that you are under strict scrutiny by Amazon.
When you have successfully completed your trial period with no errors, you will be automatically enrolled to Seller Fulfilled prime program and the Prime badge will appear on the ASIN (Amazon Standard Identification Number) you choose.
Difference between SFP and FBA
Many things matter while you choose FBA or SFP. It depends on you, whether you are looking for cost-effectiveness, profitability, or complete control of your business.
Fulfillment: This is the main difference between SFP and FBA. As you might be aware that with FBA all your orders would be completely fulfilled by Amazon. Right from picking, packing and shipping all the aspects would be taken care of by Amazon. With SFP, you are self-responsible for the fulfillment, either you should have your own warehouse or use the third-party logistics.
Fees: With FBA you also need to give storage fees to Amazon, that changes at any time. Working with some strategies may lower this fee. While on SFP you can completely avoid the storage fees.
Storage: With FBA, only that products stored in Amazon warehouse would be available for orders placed on Amazon and some specific channels. Some of the channels do not allow FBA services on their marketplaces like Walmart. With SFP, you can easily fulfill the orders from other sales channels as well. Also, Fulfillment by Amazon has few of the products restricted on its platform, which in turn restricts some of the sellers to use FBA services.
Returns: Amazon FBA handles all the returns on your behalf. But with SFP, you are completely responsible for taking care of the returns and you also need to follow the strict Amazon return policies.
Inventory Control: With FBA, you cannot control the stock once you have sent it to Amazon. While with SFP, you get the complete control of your entire stock and thus you are able to make any decisions or changes without the involvement of Amazon.
Know if SFP is the right Program for you?
In case of Seller Fulfilled Prime Program, you don’t have to stay committed to it and fulfill all your orders using this program. Most of the sellers are seen using FBA for smaller package fulfillment while they use SFP for heavy shipments fulfillment.
Before diving into Seller Fulfilled Prime program completely, we would suggest you take a trial and see if it works for your business.