Amazon SFP (Seller Fulfilled Prime) is a program that allows you to sell products through Prime, while using your own shipping methods. This means you no longer have to sign up for Amazon FBA (Fulfillment by Amazon) in order to display the Prime badge on your product listings.
As long as you can provide fast, reliable shipping to customers, you could qualify for the program. Not only does this give you more control over inventory and storage costs, but it’s also great for Amazon. It’s a win-win as Amazon can increase its Prime offering, improving the platform’s overall shopping experience, without taking up more warehouse space.
For sellers looking to reduce storage fees, this program is an ideal solution. For instance, clothing retailers who stock a large number of colours and sizes on lines that do not fly off the shelves fast enough, the cost of Amazon storage could be an issue. Or retailers selling large items that are too big or heavy for FBA will benefit from this program too.
Here, we explain how it all works, what you need to do to enrol, and how to set up Seller Fulfilled Prime if you qualify.
Being able to display the Prime badge for products you fulfil without Amazon, is a huge advantage for sellers who, for whatever reason, are unable to sign up for FBA. But how does it work? And who can enrol for this program?
Seller Fulfilled Prime happens in 5 easy steps:
This program is completely free to those who are eligible. You will only pay the standard Amazon referral fees, and any associated storage and shipping costs.
In order to qualify, sellers need to demonstrate that they are able to provide fast, reliable delivery. To meet Prime standards, you will need to commit to one-day or two-day shipping, and at no extra charge to the customer.
With SFP, you’ll be able to customise fulfilment by choosing which products you want to enrol, and selecting Amazon-approved shipping carriers (such as Amazon Shipping, Royal Mail, Yodel, Hermes, DPD, Parcelforce and UPS).
This will work differently from the FBA program, in which sellers ship their products to Amazon. While with FBA, Amazon handles everything on your behalf (including storage, packing and shipping) from their own warehouses, the Seller Fulfilled program allows you to handle all the logistics yourself. Both FBA and Seller Fulfilled product listings will display the Prime badge, and that is the biggest benefit to sellers.
Sellers can capitalise on Prime branding because customers will immediately recognise and trust the Prime badge, with almost 70% of consumers citing Prime eligibility as an important factor when choosing products on Amazon. This means the majority of users will actually filter specifically for Prime items when shopping, because they want to make sure the items get to them quickly.
With this program, sellers handle all pre-order enquiries from customers. But Amazon will handle all post-order customer services. This includes the handling of returns, refunds, and adjustments to SFP items.
For instance, if there are claims that packages haven’t arrived with the customer, this will be handled by Amazon and they will process refunds.
Sellers have the option to get additional account-health protections by using Amazon Buy Shipping.
The SFP program is suitable for anyone who wants to sell products to Amazon’s 150 million Prime members, without having to sign up for FBA. Here are some of the benefits of the program:
There’s a trial period for Amazon SFP and sellers will need to pass in order to get full enrolment on the program. To complete the trial you must ship 100 orders and meet the following metrics:
Sellers must also agree to the Amazon Returns Policy and allow for all customer service inquiries to be dealt with by Amazon.
During the trial period, you will need to show that you can provide a high standard of customer service and experience, and also live up to the delivery speeds that Prime members know, love, and expect when they place an order.
During the trial period, the Prime badge will not be displayed. But you will be expected to process orders as though you are offering Prime delivery, with a zero-day handling time. Once you successfully complete the trial, you will automatically be enrolled to the program and your chosen ASINs will display the Prime badge to customers.
Here is a step-by-step guide on how to set up Amazon Fulfilled Prime and make an application to begin the trial.
In Seller Central, type ‘Seller Fulfilled Prime’ into the search bar to find the program. Then click on ‘Apply Now’ to start the process.
To configure your Nationwide Prime Settings, you need to do the following:
Go to ‘Settings’ and find ‘Shipping and Returns Information’. From here, you’ll be able to edit your returns information (such as your return address) and optimise carrier preferences.
Click on ‘Buy Delivery Preferences’ and then click ‘Edit’ to change your preferences. You’ll be able to drag and drop carrier options into the list on the left. Finish by clicking ‘Save’. This will create your order of preference, and it will be used to prioritise shipping methods in Buy Shipping.
Next, you will need to update your product listings for the Nationwide Prime Template. When editing your product, go to the ‘Offer’ tab and change the Merchant Shipping Group to ‘Nationwide Prime’.
Alternatively, you can use a flat file to make bulk changes. This can be particularly useful if you have a large number of products that you want to submit to Amazon SFP. You can download your Amazon product feed and make changes quickly without having to manually edit each product individually. This is done through an Excel sheet, and you upload the flat file back onto Amazon.
To find out how you can do this, see our other blog post here.
The trial is the time for you to prove to Amazon that you can meet the high customer service standards linked to the Prime brand. So make sure you have everything setup in terms of logistics in order to fulfil one and two day delivery on all orders.
Performance requirements aren’t just reviewed during the trial period either. They are reviewed on a weekly basis, from Sunday through Saturday. If there are any requirements that you don’t meet while enrolled on Amazon SFP, you will be notified with email warnings.
If problems with your service continue, Amazon will deem that to be an ongoing failure and they have the right to disable Prime and remove you from the program. However, if you later prequalify for the trial period once again, you’ll be able to reapply.
It is highly recommended to monitor your performance dashboard and take advantage of the platform’s reports to pinpoint any issues.
Please be aware that expected delivery speeds may differ based on the size of your product.
While there are many benefits to this program, there are a few things to bear in mind. Firstly, in order to use SFP, you have to meet and maintain Amazon’s very strict standards for processing and delivery. The marketplace puts customer experience first, and will only keep businesses enrolled on the program if they uphold the same high standards as their own Prime delivery service.
If you are unable to guarantee one-day and two-day delivery, Amazon FBA may be more suitable as all the logistics can be handled for you.
It’s also important to remember that returns will be handled by you. While Amazon deals with the post-sales customer service (including the issuing of refunds), you will be the one who receives the returned parcel. And you will be expected to follow the same return policies as FBA sellers. So you’ll need to ensure you have the space and procedures in place to handle any returned orders.
For sellers who can offer fast delivery and a smooth returns service, SFP could be right for you. Some of the best products for SFP include seasonal products or products that have unpredictable demand (and therefore could end up being on warehouse shelves a long time), items with multiple variations that take up a lot of storage, slow-moving goods, extra-large items that are not accepted by FBA, or inventory that requires special handling or care in transit.
Do you want to find out more about SFP? At Seller Presto, we can help you get started. Not only can we show you how to set up Seller Fulfilled Prime and get all your settings configured, but we can help you improve performance through listing optimisation or Amazon paid ads.
Ready to boost your Amazon profits? Let’s get the ball rolling with a quick chat. Get in touch via our online contact form, call us on 01642 054694, or email our team on info@sellerpresto.com
If you want to unlock your Amazon growth potential but simply don’t have the time, Seller Presto can manage your entire Amazon operations. Get in touch to find out how we can transform your product sales today.