Amazon Seller Fulfilled Prime (SFP)

Last Updated on October 23, 2019 by

In this article, we will discuss the whole process of how to earn Amazon SFP and the process of applying items to Seller Fulfilled Prime.

What are Prime and SFP?

Amazon Prime is a subscription service that gives members access to a variety of Amazon perks. Benefits include access to Amazon Prime Video, free 2-day shipping on Amazon purchases, access to exclusive deals on Amazon Prime Day, and a variety of other Amazon-specific benefits. Membership costs $119 per year ($12.99/mo.) 

If you wanted to sell under the Amazon Prime badge, you had to use Fulfillment by Amazon (FBA). 

In 2016, things changed with the announcement of Seller Fulfilled Prime (SFP) and the ability to qualify for Amazon Prime by fulfilling orders yourself or outsourcing to a fulfillment partner.

The main differences between SFP versus FBA:

SFPFBA
Your stock is stored in your warehouse or your fulfillment partner’s warehouseYour stock is stored in the Amazon warehouse.
You choose your own shipping carrier or 3PL.Amazon shipping carrier.
You are responsible for sending items for free, within two-days.You need to pay on Amazon.
You avoid FBA’s fees for long-term storage, heavy items, and multi-channel orders.You have to pay for long-term storage, heavy items, multi-channel orders.

Amazon Seller Fulfilled Prime

SFP launched in 2015, Seller Fulfilled Prime is a program that allows qualified Amazon sellers with Professional Selling accounts to display the Amazon Prime badge on orders fulfilled via their own warehouse(s) or third-party logistics (3PL) providers.

Seller Fulfilled Prime means sellers no longer need to rely on FBA to be granted Prime status.

According to Amazon:

“Seller fulfilled listings that became Prime-eligible for the first time through Seller Fulfilled Prime experienced an average sales uplift of more than 50%.”

  1. Requirements for Seller Fulfilled Prime:

Ultimately, to be eligible for MFN Prime / Seller Fulfilled Prime, Amazon must be convinced that you can fulfill your orders to meet their customer’s expectations.

This means that as an Amazon seller you need to meet the following requirements:

Ship over 99% of your orders on time

To qualify, you must have no less than a 99% on-time shipping rate.

In fact, given that the major selling point of Amazon Prime is it’s next-day shipping, failing to meet this requirement indicates that you’re not a reliable seller.

Have a less than 1% order cancellation rate

Order cancellation is another indication of customer satisfaction, which is why Amazon require Amazon MFN approved sellers to have a cancellation rate of less than 1%.

Purchase shipping labels from Amazon

In addition, to needing to purchase shipping labels from Amazon’s shipping website, you will also need to deliver orders with Amazon supported Seller Fulfilled Prime carriers – Amazon Logistics.

Must agree to the Amazon Returns Policy

Another requirement for Seller Fulfilled Prime eligibility is the need to agree to Amazon’s returns policies.

  1. Applying Process

Before enrolling in Seller Fulfilled Prime, we must complete a trial period to show that we are able to meet the requirements for Prime fulfillment excellence and customer satisfaction. The Prime badge will not be displayed on items enrolled in Seller Fulfilled Prime during the trial period, however, we must process the orders with a zero-day handling time. Once we successfully complete the trial period, we will automatically be enrolled in Seller Fulfilled Prime and our enrolled ASINs will display the Prime badge to customers.

If we do qualify, we will be notified via email and receive a webinar invitation to Amazon Seller Fulfilled Prime.

If you don’t qualify, we will be notified via email along with guidance on how to become qualified for Seller Fulfilled Prime.

At first, we have to register for Seller Fulfilled Prime from the amazon Shipping Setting. After that, we have to follow these following steps,

1. Qualify for Seller Fulfilled Prime and complete the trial period.

2. Store inventory in our own warehouse.

3. Process our orders and buy shipping labels from approved carriers.

4. Pick, pack and ship our orders the same day.

5. Seller Fulfilled Prime carriers collect and deliver orders in two days to customers.

Convert items to SFP:

You need to create a Shipping template for SFP. Because in every account there is one or more shipping template but you need to create a specific shipping template with one-day shipping or you can create specific template for different regions. This specific template is for SFP. Once you created the shipping template you can move your item under that shipping.

For moving your item under the shipping template you need your items back-end by clicking Edit.

Once clicked Edit, this will take you to the page where you can find out and choose your shipping template. You need to choose Shipping-Template from Offer.

Now you are all set. Your items have been moved to SFP. Or if you want you can use bulk editor for moving the items.

Amazon Seller Fulfilled Prime costs and fees

No costs and fees required for Amazon Seller Fulfilled Prime.

In fact, if you qualify as an Amazon MFN seller you will only need to pay the shipping costs of the designated Prime carrier.

You should also keep in mind that as a Prime-eligible Amazon seller, you will need to offer free standard shipping on all of your Prime orders to non-Prime customers and will need to factor in this cost when setting your prices.

That’s all. This is the end of this article. Hope this blog was informative. Feel free to leave your comment below if you have any queries. We would be glad to help you out.

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