Amazon Seller Fulfilled Prime Guide  

Seller Fulfilled Prime is a program created by Amazon to offer its Prime services to third-party sellers using its platform. 

It offers a range of benefits for sellers that can help them stand out from their competitors and become more attractive to potential buyers. 

However, not everyone can qualify to become a Prime seller, and the program requires retailers to meet strict criteria. 

In this guide, our Amazon selling experts explain Seller Fulfilled Prime, its advantages, and potential challenges to be aware of when using the program.

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What is Amazon Seller Fulfilled Prime? 

Amazon Seller Fulfilled Prime is a program offered by Amazon that allows qualified third-party sellers to display the Prime badge on their listings while fulfilling orders from their warehouse. 

To qualify for and maintain their status, these sellers must meet certain criteria, including consistently meeting Amazon’s high customer service and shipping standards. 

The program allows sellers to offer Prime benefits, such as fast and free shipping, to Prime members directly from their facilities without using Amazon fulfillment centers.

Seller Fulfilled Prime vs Fulfillment by Amazon 

Seller Fulfilled Prime (SFP) and Fulfillment by Amazon (FBA) are both programs offered to third-party Amazon sellers, designed to make it easier for them to fulfill orders quickly and conveniently.  

However, they offer unique opportunities and benefits to sellers – mainly in how the order fulfillment process is handled: 

  • Seller Fulfilled Prime (SFP): With Seller Fulfilled Prime, sellers retain responsibility for fulfilling orders using their own inventory and shipping capabilities. To participate in the program, they must meet Amazon’s strict performance metrics and shipping requirements. SFP sellers display the Prime badge on their listings and can offer Prime benefits to Prime members. 
  • Fulfillment by Amazon (FBA): With Fulfillment by Amazon, sellers send their inventory to Amazon’s fulfillment centers, and Amazon handles storage, packing, and shipping of orders on their behalf. FBA sellers also benefit from Amazon’s in-house customer service offering and return handling. Prime-eligible items stored in Amazon’s fulfillment centers are automatically eligible for Prime benefits. 

Read our blog post on selling with Amazon FBM for more information about FBA and how it differs from Fulfilled by Merchant (FBM). 

How To Qualify for SFP with Amazon 

Sellers looking to take advantage of the SFP program must meet specific vital criteria to qualify.  

Below is a list of obligations and fees required of every seller to reap the rewards available with SFP: 

SFP Requirements

  • Proven Performance: Sellers must demonstrate a track record of fulfilling orders on time and meeting Amazon’s performance metrics, including a high fulfillment rate and low cancellation rate. 
  • Shipping Speed: To meet the Prime service level expectations, they must commit to fast shipping times, such as same-day or next-day delivery. 
  • Shipping Options: Sellers must offer reliable carrier options, including those integrated with Amazon’s Buy Shipping Services, to make timely and accurate deliveries. 
  • Inventory Management: Sellers must have robust inventory management systems to track stock levels accurately to prevent overselling and maintain inventory visibility. 
  • Customer Service: SFP sellers are expected to provide excellent customer service by promptly responding to buyer inquiries and resolving issues. 
  • Fulfillment Compliance: Sellers must adhere to Amazon’s packaging, labeling, and shipping requirements to maintain a consistent and professional fulfillment experience. 
  • Operational Capacity: To meet all customer expectations, sellers must demonstrate the ability to handle high order volumes and maintain efficient operations. 

SFP Fees 

The fees associated with Seller Fulfilled Prime can vary depending on the marketplace and region. However, two of the most common costs associated with SFP include: 

  • Amazon Selling Fees: These are the standard fees Amazon charges for selling on their platform. They typically include referral fees, a percentage of the item’s sale price, and variable closing fees for specific categories. 
  • Shipping Costs: SFP sellers are responsible for covering the shipping costs of orders. The shipping costs can vary based on the weight, dimensions, shipping method, and package destination. Sellers can choose their preferred shipping carrier and negotiate rates accordingly. 

Actual SFP fees can fluctuate, so it is recommended that you refer to Amazon Seller Central or consult with Amazon directly for the most accurate and up-to-date fee information for each unique retailer. 

Benefits of Selling on Amazon Prime 

Taking advantage of the Amazon Prime label and associated services offers several benefits for retailers and individual sellers: 

  • Increased Visibility: Prime products are prominently featured on Amazon’s website, increasing the seller’s visibility and exposure to millions of Prime members. Users can even filter product results to show only Prime products. 
  • Prime Badge: Prime products display the recognizable Prime badge, which creates trust and credibility in potential customers, leading to higher conversion rates and increased sales. 
  • Fast and Free Shipping: Prime members enjoy the benefits of fast and free shipping on Prime products. By offering Prime-eligible items, sellers can attract more customers who prioritize expedited and cost-effective shipping options. 
  • Buy Box Advantage: Prime products often have a higher chance of winning the Buy Box, the default ‘Add to Cart’ option for customers. Winning the Buy Box increases the likelihood of making a sale, as many customers are influenced to choose the default option. 
  • Enhanced Customer Loyalty: Prime members tend to be more loyal and make repeat purchases on Amazon. Sellers can tap into this loyal customer base by offering Prime shipping and benefit from increased customer retention and repeat sales. 
  • Access to Marketing Programs: Selling on Amazon Prime may grant sellers access to various marketing programs and promotions, such as Lightning Deals and Prime Day, which can drive additional sales and product exposure. 

Helium 10 Free Sales Estimator 

Ready to take your sales to the next level and apply for Seller Fulfilled Prime?  

Meeting its strict criteria and fee requirements can be a challenge, so confidence is key when choosing which products to sell on the platform. The Helium 10 Sales Estimator arm you with product insights, taking the guesswork out of Amazon trading. 

Our Sales Estimator allows you to: 

  • Check the average number of sales within a specific product category. 
  • Calculate your potential for overall sales and revenue from a product. 
  • Estimate sales based on keyword rankings, search volumes, and conversion rates. 

Our innovative free Chrome extension helps you target your sales and boost revenue. 

Considerations and Challenges of Seller-Fulfilled Prime  

While Seller Fulfilled Prime (SFP) offers many benefits, some important considerations must be kept in mind for sellers: 

  • Fulfillment Capacity: SFP requires sellers to manage their fulfillment operations, including inventory management, packaging, and shipping. Sellers must have the necessary resources, infrastructure, and capacity to handle estimated order volumes while meeting Prime shipping expectations. 
  • Performance Expectations: SFP sellers must maintain high performance levels to meet Amazon’s strict requirements. This includes fast order processing, on-time delivery, low cancellation rates, and excellent customer service. Please meet these standards to avoid account suspension or loss of Prime eligibility. 
  • Shipping Costs: Sellers are responsible for covering shipping costs, which can impact profit margins. Negotiating competitive shipping rates with carriers and optimizing packaging and shipping processes are essential to minimizing expenses. 
  • Competitive Landscape: Selling on Prime still involves competing with other Prime-eligible sellers for customer attention and Buy Box placement. Sellers must differentiate their products, optimize listings, and employ effective marketing strategies to stand out in a competitive marketplace. 
  • Inventory Management: Accurate inventory management is crucial to avoid stockouts, overselling, or shipping delays. SFP sellers need robust systems and processes to provide real-time inventory visibility and synchronization with Amazon’s platform. 
  • Seasonal Demand and Peak Periods: SFP sellers may experience increased order volumes during peak shopping, such as holidays or promotional events. Preparation in terms of staffing and logistics planning is necessary to handle the potential surge in orders without compromising customer service levels. 
  • Compliance and Policy Changes: Amazon’s policies and requirements evolve. SFP sellers must stay updated on policy changes, adapt to new guidelines, and maintain compliance to keep their Prime eligibility. 

Inventory Management with Helium 10 

Gain access to an Amazon-compatible, high-quality Inventory Management API that keeps track of stock and simplifies the management process with Helium 10. 

  • Complete supplier orders and send inventory to Amazon, all in one place. 
  • Avoid stock-outs and over-ordering. 
  • Stay in the know with quantity updates and restock recommendations. 

These benefits and more can be found in our Helium 10 suite.

FAQs

Frequently Asked Questions

While both terms refer to steps in the order completion process, fulfilled and delivered differ in meaning.

“Fulfilled” refers to a product that has undergone the entire ordering process, being placed, prepared, shipped, and marked as complete. “Delivered,” however, directly refers to the physical process of a package being handed over to the customer.

To qualify for Seller Fulfillment Prime, sellers must meet strict Amazon criteria related to their ability to fulfill orders quickly, accurately, and consistently. Therefore, buyers are confident that these sellers have a track record of meeting Amazon’s high standards for Prime partners.

Sellers participating in the Seller Fulfilled Prime (SFP) program are responsible for covering the shipping costs associated with Prime orders. They must also ensure that the orders are shipped with a reliable carrier that meets Amazon’s shipping standards. The seller typically incurs these shipping costs as part of their operational expenses.

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Copywriter

A dedicated copywriter with nearly 4 years of experience, Josh works with Amazon sellers and helps his clients succeed on the platform.

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