The Ultimate Guide to Selling on Amazon - Chapter 6 - Seller Fulfilled Prime

In late Autumn, 2015, Amazon introduced a new feature by invite-only – Seller Fulfilled Prime (SFP). This allowed certain sellers with excellent ratings the opportunity to offer their customers Prime shipping from their own warehouses using Amazon’s logistics.

The program was met with enthusiasm, and was rolled out, again by invite-only, to more and more sellers until it was eventually introduced worldwide in 2016.

Now, if you qualify, you can list your products as Prime products, but you don’t have to ship them to Amazon, but can instead handle the logistics yourself.

Qualifying for SFP isn’t a walk in the park, and the program won’t be beneficial for many who sell through Amazon. First, you’ll have to complete a trial period where you have to prove you’re capable of handling Amazon Prime shipping standards. If you are, you’ll be enrolled on SFP.

First of all, you’ll need not only a professional seller’s account, but your products will have to be eligible for Amazon Premium Shipping. In Amazon’s own words:

“In order to become eligible and maintain eligibility for Seller Fulfilled Prime, you must always be eligible for the Premium shipping program. The trailing 30-day eligibility requirements for Premium Shipping are:

An on-time delivery rate of at least 92% for Premium Shipping orders.

A valid tracking ID for at least 94% of Premium Shipping orders.

A cancellation rate of less than 1.5% for Premium Shipping orders.

If, after thirty days, you successfully complete the trial and gain Prime Shipping eligibility status, you will automatically be enrolled in the Seller Fulfilled Prime program.”

So, what are the pros and what are the cons of switching to SFP? Let’s take a look.

Pros:

Access to Prime members – On average, Amazon Prime members spend $1,200 a year on the site as opposed to non-members, who spend about $700.
Avoid FBA fees – By taking care of their own shipping and handling, SFP members can avoid the endlessly-increasing fees Amazon pile on to its FBA members while still being able to make use of the Buy Box feature that’s key to converting a listing into a sale.
Inventory control – You’ll be able to keep all your inventory in one place, making it easier to track and monitor. You’ll have more control when it comes to things like Prime Day and other sales and promotions Amazon runs, as you’ll be able to send out as much product as is ordered, unlike with an FBA account where the stock you send to Amazon might run out, leaving you with no ability to restock.
Returns control – You’ll be able to directly process customer returns and complaints, making it easier to get to the bottom of the problem a customer has. It also makes identifying that problem easier, as FBA members often receive multiple returns all at once, making it hard to distinguish which problem goes with which product.

Cons:

Paying for your own warehousing, handling, and shipping – Unlike with FBA where you simply send goods to Amazon and they take care of the fulfillment, SFP members have to take care of that themselves. This kind of operation isn’t exactly cheap, and it’s one of the things you’ll need to factor in before considering the switch to SFP.
Quick refund commitment – Amazon requires anyone selling through Prime to issue a refund within 2 working days. Orders other than Prime have a 5 working day refund window.
Strict terms and conditions – Fall below Amazon’s strict performance metrics and the company will swiftly remove your Prime badge. This can spell disaster for a business, and is one of the reasons some companies and sellers actively avoid signing up for SFP.