Your Complete Guide to Amazon Seller Fulfilled Prime
Welcome! This in-depth guide will provide you with everything you need to know about Amazon’s Seller Fulfilled Prime program. By the end, you’ll understand how to take advantage of this opportunity and turn your business into a success on Amazon.
Let’s dive right in!
What is Amazon Seller Fulfilled Prime?
Amazon Seller Fulfilled Prime (SFP) allows third-party sellers on Amazon to fulfill Prime-eligible orders from their own warehouses or facilities. This gives sellers the ability to offer Prime’s coveted two-day shipping benefit without storing inventory in Amazon’s warehouses.
Previously, only items shipped directly from Amazon qualified for Prime shipping. But Amazon realized that many sellers could likely meet Prime’s standards on their own. So in 2015, they launched SFP to open up this lucrative Prime perk to more sellers (IPS).
Why is Seller Fulfilled Prime Important?
There are a few big reasons why qualifying for SFP can significantly boost your Amazon sales:
Prime Customers Spend More: Amazon Prime members spend about $1,300/year on Amazon on average, far exceeding non-Prime customers ([Source](https://www. https://www.digitalcommerce360.com/article/amazon-prime-shopping-statistics/). Showing the Prime badge influences shopping behavior.
Exposure to More Buyers: Your products will be visible to the 200 million Prime members worldwide searching specifically for Prime-eligible items.
Trust and Convenience: Customers trust Prime’s two-day shipping promise. Offering it through SFP helps gain customer trust for your business too.
Increased Sales Velocity: Faster shipping means higher purchase conversion rates and more frequent reorders from happy customers.
So in summary, SFP opens your products to Amazon’s most engaged shoppers, who are proven to spend more. It’s a huge opportunity if you can meet Amazon’s stringent requirements.
Amazon SFP Requirements
To participate in SFP, sellers must meet and maintain Amazon’s strict performance metrics. Failure to do so will result in removal from the program. The current requirements include:
- Maintaining a cancellation rate below 1% on all Prime orders
- Fulfilling at least 98.5% of Prime orders within the guaranteed delivery window
- Completing a minimum of 30 Prime orders within the last 30 days
- Having no pending or historical performance issues on your account
- Enrolling in Amazon’s premium shipping program
Additionally, Amazon may pause or limit SFP participation during peak seasons like holidays to ensure prime delivery promises aren’t compromised. Staying on top of your metrics is critical.
How to Apply for Seller Fulfilled Prime
Once your account meets all the requirements above, you can submit an application to join SFP. Here are the basic steps:
- Log into Seller Central and navigate to “Programs & Features>”Fulfillment by Amazon>”Seller Fulfilled Prime”.
- Review your account’s health and eligibility status. Resolve any issues preventing enrollment.
- Click “Request Access” and submit an application explaining your fulfillment capabilities.
- Amazon will review and notify you of your application status within 2-4 weeks.
- If approved, you can start managing and tagging eligible products right away.
It’s a good idea to work with an experienced Amazon consultant to help optimize your account and application for the best chance of approval. They can also assist with ongoing program management.
Fulfilling Prime Orders Effeciently
Once enrolled, it’s important to have processes and infrastructure in place to reliably fulfill Prime orders within the guaranteed delivery window. Here are some best practices:
- Maintain ample stock levels of Prime SKUs to avoid out-of-stocks
- Integrate warehouse management systems for accurate inventory tracking
- Optimize fulfillment workflows for maximum 2-day shipping speed
- Consider third-party logistics partners for additional capacity if needed
- Monitor metrics daily and resolve issues like delays immediately
- Pause SFP participation for any high-volume out-of-stocks
- Communicate order status to customers proactively on late shipments
With the right preparation and ongoing optimization, you can confidently promise Prime’s fast delivery and keep customers happy.
Key Takeaways
To summarize, here are the most important things to remember about Seller Fulfilled Prime:
- It opens your products to Amazon’s most engaged shoppers, who spend the most
- Meeting Amazon’s strict eligibility criteria is critical for enrollment
- Have fulfillment operations optimized for reliable two-day deliveries
- Work with experts to strengthen your application and manage ongoing requirements
- Maintaining the Prime badge can substantially grow your Amazon sales
With the right execution, SFP presents a huge opportunity to boost sales velocity, customer satisfaction and grow your business on Amazon’s marketplace.
FAQs
Here are some frequently asked questions about Seller Fulfilled Prime:
Q: What products are eligible for SFP?
A: Generally, any non-perishable, smaller package items can qualify. Books, electronics, toys, etc. are common categories.
Q: Can I still use Fulfillment by Amazon for some items?
A: Yes, you can maintain a hybrid model with some stock in Amazon warehouses for FBA as well as self-fulfilling other Prime SKUs.
Q: How will customers know my items have Prime delivery?
A: Eligible items will display the Prime badge and be included in Prime search/shopping results.
Q: What if I miss the 2-day delivery window?
A: You’ll be responsible for any late shipment fees or compensating the customer. It’s best to temporarily pause SFP for out-of-stocks.
Q: Can I use other carriers besides USPS/FedEx for shipping?
A: You can use a variety of major carriers as long as you consistently adhere to the 2-day delivery promise.
Q: How do I track and manage my SFP metrics?
A: Amazon provides performance metrics in Seller Central. Consider tools like InventoryLab also for more robust analytics.
I hope this guide has given you a thorough understanding of Amazon’s Seller Fulfilled Prime program and how you can take advantage of it for your business! Let me know if any part needs more explanation.