Increase your average sales by 50% by shipping your products to Amazon PRIME customers with the SFP shipping method.
Seller Fulfilled Prime (SFP) is an Amazon order fulfillment program that allows third-party sellers to ship Prime items straight to customers in two days from their own warehouse if they meet the Amazon Seller Fulfilled Prime requirements.
Enrolling in the SFP program can benefit a seller’s listings by increasing discoverability and allowing them to show the Prime badge.
The goods offered, the seller’s ability to take on the shipping obligations and Amazon’s costs, and the level of engagement they are prepared to have in operations all play a role in deciding whether to use Fulfillment by Amazon or apply for Seller Fulfilled Prime.
For merchants with smaller items that don’t require special packing, FBA is a better option. Sellers, on the other hand, lose control of their business and branding when they hand over inventory and shipping to Amazon.
Customers may receive damaged or non-delivered products when they order through FBA. Furthermore, FBA fees for inventory storage (among other line items) can be rather substantial, and Amazon will charge you more if your inventory turnover is slow or if you need to remove stock from their warehouse.
Amazon is continually pushing vendors to go above and beyond to give better service across the board, so earning a Prime badge isn’t simple. To be accepted into the program, sellers must have a well-oiled shipping mechanism. Once Prime status is earned, maintaining it and meeting Amazon’s ever-changing rules, which leave little room for error, can be similarly difficult.
Despite the fact that SFP is the more cost-effective choice, there are still charges that sellers are unaware of. Sellers who comply with Amazon’s two-day shipping restriction often end up with a smaller profit margin or even break even on these orders. This puts a strain on operations and the company’s ability to offset high transportation expenses.
Even though SFP requires more labor and responsibility from the seller than FBA, which allows Amazon to manage inventory storage and delivery, there are still numerous advantages to using SFP to fulfill Amazon Prime purchases.
The Prime emblem will be added to a seller’s listings once the trial period has ended. This gives their products more exposure to regular Amazon consumers and Prime members, as well as indicating that the seller is trustworthy and has high-quality products.
Sellers and their customers get access to Amazon’s 24/7 after-sale customer assistance as part of Amazon’s Seller Fulfilled Prime program. Amazon’s staff of highly trained customer support specialists is here to assist you. Customers will be able to track their orders, return items, and obtain refunds via this service.
FBA shipping, handling, and storage expenses, which are sometimes perceived as expensive, can be eliminated with Amazon Seller Fulfilled Prime. Previously, the only option to attain “Prime status” was to fulfill orders through FBA, which led in a loss of profit for businesses.
Because it’s in your hands, not Amazon’s, Amazon Seller Fulfilled Prime gives you additional opportunities to promote your brand. This means fewer Amazon branding on your parcels, greater product control, and direct inventory visibility from your own warehouse – all while preserving Prime status.
Amazon has irrevocably altered the industry and customer expectations. Standing out on Amazon can be difficult, but SFP and FBA are two solutions that might make it a little easier. Choosing between Fulfillment by Amazon and Seller Fulfilled Prime might be difficult because both have benefits and drawbacks, but the ideal option depends on your products and how you want to run your business.