There are a huge number of consumers on Amazon, among which 100 million are Amazon Prime members, and they are very loyal to Amazon. For Amazon sellers, if their products can be marked with the Prime logo and pushed to Amazon Prime members, it is likely to promote sales growth.
Previously, only FBA sellers could have the Prime membership badge. Now, self-shipping sellers can also do so, as Amazon has launched the Seller Fulfilled Prime (SFP) program. In today’s article, we will take a look at what the SFP program is and whether it is right for you to apply for it.
What is Seller Fulfilled Prime? Seller Fulfilled Prime is a service provided by Amazon that allows self-shipping sellers to reach out to and sell products to Amazon Prime members. Their products can be marked with the Amazon Prime logo and delivered to consumers by the sellers themselves.
In addition to cost savings, sellers who join the SFP program can also reach high-end consumers, which alone may help them beat their competitors.
Benefits of becoming an SFP seller
- Products listed in the SFP program will have a better chance of winning the Buy Box because when consumers add a buy box product to their cart, most of them will purchase the product.
- By joining the SFP program, Prime members are guaranteed fast delivery of their purchased products, so these customers are likely to buy more products and buy more frequently.
- After the order is shipped, Amazon will provide SFP sellers with free customer service, including order tracking, return and refund services;
- Products with the Amazon Prime logo can enter the Amazon website's Today's Promotions section, thereby attracting more Prime members;
- As a seller who ships your own goods, joining the SFP program can make it easier to manage multi-channel inventory.
How do I apply to join Seller Fulfilled Prime?
Before applying to join Seller Fulfilled Prime, your seller account must be set up with Premium Shipping. SFP sellers need to provide consumers with fast delivery services. If Premium Shipping is not set up, the application will not be approved.
Once you're set up, you can create different shipping methods in your account to offer fast delivery to your customers. Before officially joining the SFP program, Amazon has a trial period. During the trial period, Amazon will assess your store operation capabilities and store performance. The trial period varies from 5 to 90 days, depending on your store performance.
During the SFP trial period, some of your products will be able to carry the Prime logo. Amazon requires at least 200 Prime orders to be completed. After the trial period, if your performance is met, your account will be automatically upgraded to a formal SFP account.
Once your application is approved, product sales may increase quickly and you need to prepare inventory so that you can ship products normally.
You can stock and ship products to customers yourself, and the products can carry the Amazon Prime label, but there are some rules to follow:
- All Prime order logistics labels must be purchased from Amazon-approved logistics companies;
- All Prime orders must be processed, packed, and shipped on the same day the order is received;
- All Prime products listed must be available with Standard Prime shipping, so remember to factor that into your product pricing.
Requirements for applying to join the SFP program
Amazon takes Prime consumers very seriously. Before you become an SFP seller, check whether you meet the following requirements:
More than 99% of orders need to be shipped on time, and failure to meet this requirement will easily lead to disqualification. The order cancellation rate is one of Amazon’s indicators for testing customer satisfaction, so SFP sellers must have an order cancellation rate of less than 1% to be eligible. Therefore, you need to work harder on customer service. SFP sellers need to purchase product labels and deliver goods from logistics companies approved by Amazon.
SFP sellers must strictly abide by Amazon’s return policy, so be sure to familiarize yourself with Amazon’s return policy before applying to join the SFP program. SFP sellers must set up product warehouses in the site where they sell. For example, SFP sellers selling in the US site must store their goods in the United States. Amazon will strictly monitor the above requirements, so before applying to join the SFP program, check whether you strictly comply with all the above requirements.
Pros and Cons of Seller Fulfilled Prime
Not everyone is suitable for joining the SFP program. First, let’s look at the pros and cons of joining SFP:
- By becoming an SFP seller, you no longer need to pay FBA shipping fees and storage fees, etc., which can save a lot of money in a year.
- Becoming an SFP seller can tap into the lucrative Prime membership market. Amazon Prime members tend to have higher spending power and higher loyalty. Data shows that many Prime members spend about $1,300 on Amazon each year.
- Becoming an SFP seller will automatically give you an advantage that your competitors don’t have, putting you one step ahead of others.
- Although sellers who ship their own goods can save on FBA fees, sellers who join the SFP program not only need to pay for their own packaging and shipping, but also need to purchase logistics labels approved by Amazon.
- SFP rules ensure high standards for customers. For sellers, this means any substandard or violation will result in loss of SFP eligibility.
- One of the main rules of SFP is that all Prime orders must be shipped strictly on the same day, which is a bit cruel.
Seller Fulfilled Prime FAQs
Q: How much does it cost to join Seller Fulfilled Prime? It is free to apply and register as an SFP seller, but you need to purchase product labels from an Amazon-approved logistics company. Q: How long is the SFP trial period? The trial period is determined by the seller's performance and can range from a few days to a few weeks. Q: What do I need to do to complete my probation period? You need to fulfill at least one Prime order and ship 99% of your orders on time. Q: What happens if my SFP application is rejected during the trial period? A rejected application will not affect your normal seller account, and you will be able to reapply immediately.
Q: What are the requirements for applying for SFP?- Must have a warehouse in the country of sale
- At least 99% on-time shipment rate
- Order cancellation rate is less than 1%
- Using Amazon Prime Shipping Labels
- Use Amazon Prime approved logistics companies
Q: Can SFP membership be cancelled? You can cancel or enable your Seller Fulfilled Prime account at any time as long as you have no unfulfilled orders.
How do I know if the SFP program is right for me?
If you are a serious full-time Amazon seller, you will receive more orders, especially through events such as Amazon Prime Day, which can basically increase sales by about 60% to offset the standard membership delivery fees. You need to raise your product prices to offset shipping costs, so you need to convince consumers to buy your product at a higher price. On the other hand, you need to maintain Amazon’s high standards of service, such as same-day delivery. If you take too long a vacation or are unable to maintain this high standard for other reasons, you will quickly lose your SFP seller qualification. Therefore, it is important to check the source of the product and the reliability of the supplier's service. With the increase in Prime orders and Amazon's strict policies, SFP sellers must strictly implement logistics and transportation to ensure that inventory is obtained quickly.
Any good tips for taking advantage of the SFP program?
- Limit the logistics delivery area : SFP sellers need to provide consumers with free and fast logistics services, but this is also a headache for many sellers. In fact, you can solve this problem by limiting the countries/regions where products can be delivered. By providing products and logistics services in a small range, you can choose more economical couriers, such as UPS Ground or FedEx Ground.
- Pay attention to reports : SFP sellers will feel the fast pace and sometimes even pressure. Therefore, sellers should always pay attention to reports. The indicators in the reports can help you find potential problems as soon as possible and deal with them in time. It can also help you find many problems, such as delayed scanning by the courier or other order penalties.
- Reasonable transportation : You can use Package Pick Up to manage time more effectively. SFP does not count Saturday into the delivery time, so sellers can ship from Thursday to Saturday.
Seller Fulfilled Prime is a great way to acquire a large number of new customers quickly and at a relatively low cost. For sellers who ship their own products, being able to access Amazon’s Prime membership can be very profitable and may even help them turn things around. But SFP is also a double-edged sword. Before considering applying to join, consider whether you can afford its shortcomings.
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