University - Shipping Items
Seller Fulfilled Prime (SFP)
Stay on top of the latest e-commerce and marketplace trends.
Seller Fulfilled Prime (SFP) is a fulfillment method that allows qualified Amazon sellers with Professional seller accounts to display the Amazon Prime badge on orders fulfilled via their own warehouse or third-party logistics providers.
In order to become eligible and maintain eligibility for SFP, the seller must always be eligible for the Premium Shipping program. The 30-day eligibility requirements for an item to qualify 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
The trial period lasts between five and 90 days depending on when the seller satisfies the performance requirements on a minimum of 200 Prime trial orders. If you fail to fulfill the requirements for 200 eligible Prime trial orders within 90 days, the trial period will reset automatically and you will be able to try again.
Considerations When Deciding to Use SFP
- Know who is buying your items. Identify and drill down which geographic regions your customers are in to help you decide where you will benefit from selling via SFP. This will be dependent on where your warehouse is located and what the local shipping rates are.
- Identify your competitors that are selling via SFP and know where they are located.
- Pay close attention to Amazon’s FBA fees, as they tend to change frequently without notice.
Advantages of SFP
There are several reasons that sellers are transitioning specific ASINs to be fulfilled via Seller-Fulfilled Prime:
- To receive access to the Prime customer base. More exposure and product discoverability on the marketplace will lead to more sales conversions.
- To gain complete control over your inventory, which eliminates the need to send stock to Amazon.
- To experience the same Buy Box privileges as Fulfillment By Amazon (FBA) sellers.
- To eliminate FBA shipping and handling fees.
- To avoid FBA long-term storage fees, which are being evaluated on a monthly basis beginning in September 2018 and will be scrutinized more meticulously.
- To increase profits on bulky, heavy merchandise that are subject to high FBA fees and FBA-ineligible items (typically those deemed as hazardous).
- Sell certain products that are ineligible for FBA.
- To instill a more seamless returns process. With SFP, sellers can directly handle returns on Prime purchases, which will help them track and identify product returns.