Following its success with Prime delivery and becoming the business standard for next day delivery, Amazon is once again changing market dynamics by providing businesses an opportunity to stand out and step into the vast amazon e-commerce marketplace. Amazon Seller Fulfilled Prime has emerged as a game changer, revolutionizing customer satisfaction and boosting online sales.
The “Amazon Prime” distinction alone can significantly boost visibility, trust and ultimately sales. In addition to all these benefits, Amazon’s SFP (or Seller Fulfilled Prime) can grant your business greater control over inventory tracking, order fulfillment processes, and brand visibility while meeting the prime delivery requirements and standards.
Contrasting with Fulfillment by Amazon (FBA), where Amazon handles storage, picking, packing, and shipping, SFP gives sellers more control over their fulfillment process while still meeting Amazon’s stringent standards. This guide will explore the differences between SFP and FBA, and help sellers determine if SFP is the right choice for their business.
What is Amazon prime?
Amazon Prime, offers free same day shipping and delivery to its customers, in response to this age-old dilemma since the inception of e-commerce. Now you may be wondering: How does same-day shipping differ from same-day delivery?
Same-day shipping is when a customer’s order leaves the warehouse on the same day of purchase; Whereas, Same-day delivery takes it a step further and guarantees your order will be delivered on the same day it’s purchased.
Unsure how important same-day delivery is? Take a look at these stats:
What is Amazon’s Seller Fulfilled Prime and how
does it differ?
Amazons’ seller fulfilled prime program offered by amazon allows qualified third-party sellers to display the prime badge on their listed products and offering prime shipping benefits to customers either directly from their warehouses Canada or through a 3PL warehousing service. The Seller fulfilled program by amazon providers with more control over the fulfillment process while still meeting Amazon Prime’s strict standards. However, unlike Amazon’s “Fulfillment by Amazon program “, also known as Amazon FBA, where the handling, storing, picking and packing of the products are directly engaged by amazon itself, sellers in the SFP program can now manage these aspects themselves while still fulfilling Amazons’ strict delivery standards and procedures or by choosing a Third-party Logistics Provider (3PL)
such as MacMillan Supply Chain Group.
What does Amazon’s Seller Fulfilled Prime Offer?
Amazon’s Seller fulfilled prime (SFP) offers a unique blend of advantages for Amazon’s sellers who want to offer Prime shipping with added flexibility and transparency of managing their own fulfillment process. The online retail landscape is now more competitive and diversified than ever. Amazon’s SFP program offers a golden chance providing greater exposure to your products and could be the decisive factor for creating long term customers. Your business can benefit with this program in several ways including:
- Reach your target audience VIA Amazons search engine preference:
The SFP program not only allows you to list your products with a premium badge but will help you reach the most loyal customer base, Thanks to Amazon’s optimized search preferences that it gives to its prime products. - Increased visibility converting into sales:
The prime badge by Amazon to the products listed on SFP just like for FBA gives a prompt visibility for fast and reliable shipping which all customers love! Moreover, SPF gives you a competitive edge in winning the buy box,making it easier for the customers find and purchase. - Control over inventory and branding:
Having your own warehouse means having your own rules or via a 3PL provider which can give you full access and control over inventory management and intact pricing models, avoiding amazons space and charges for limited storage. Since you ship directly to your customers you can work for higher efficiency levels via packaging, inserting promotional material and making it sustainable for your brand. - Potential cost cutting:
SFP can save your business additional fees on long term storage that FBA cannot. You could find more competitive delivery rates through your own transporter connections or a 3PL, possibly reducing costs in comparison with FBA. - Multi-channel flexibility:
SFP can help you manage inventory for sales on your own social networks, websites and other offline channels. In the peak season where your business may encounter spike in demand SFP allows flexibility without Amazon’s potential restrictions.
Is Amazon SFP the right choice?
Determining if SFP is the right choice for your business could depend upon
various factors including operational capabilities, long term goals and consumer base. While SFP offers huge advantages like expanded reach, greater satisfaction, and access to Prime members, it additionally requires meticulous attention to detail and a guarantee to meet Amazon’s stringent performance guidelines. To sum up, seller fulfillment program could be an excellent option for sellers who have an established fulfillment infrastructure or experienced 3PL relationships, the businesses wanting more control over their inventory and branding after taking into consideration the products they are offering.Listing some Pros for joining the SFP program for your business:
- Cost reductions: You can avoid FBA storage and fulfillment fees for large and bulky items, which can be a fair amount of money.
- Increased sales: Prime members are more likely to buy products with a prime badge which can lead to a boost in sales
- More control over your brand: You can promote your own brand by customized packing and shipping inserts rather than Amazons.
While the Amazons SFP program sounds good on paper, there are some considerations to be followed before being accepted into the program. Joining the program can entail stringent requirements and increased responsibility.
The sellers must meet SFP requirements that can be more complex to set up that FBA, as you are responsible for the entire fulfillment operation including inventory management, shipping logistics which can be time consuming and resource sensitive.
How to sign up for Amazon’s Seller Fulfilled Prime?
Here’s a step-by-step guide on how you can get started with Amazon’s Seller Fulfilled Prime program.
Some pre-requisites include having a Professional sellers account, meeting Amazon’s standards for shipping performance and being eligible for premium shipping which means offering 2-day shipping. To Register, go to the seller fulfilled prime page on Seller Central and click “Register for trial” and follow the prompts. During the Trial Period, you must fulfill a minimum of 200 prime trial orders within a set period, while maintaining the same strict performance metrics of an on time shipping rate of 99% and higher, and order cancellation rate of less than 0.5%.
Note: Your listings will not have the blue prime badge in this period.
Once the trial period ends, the next step is Evaluation. Amazon will evaluate your performance during the trial, and if you meet the requirements, you’ll be invited to the full SFP program.
Additional tips to ensure your success:
- Prepare your logistics: Have a plan for warehousing, fast order fulfillments, and mitigating time constraints.
- Calculate costs: estimate shipping costs to ensure your margins are sufficient for different regions.
- Use SFP tools: Amazon offers resources and tools specifically for SFP sellers to help manage the program.
Streamline Your Operations with MacMillan’s SFP
Solutions
A possible solution to signing up for Amazon’s SFP program without the meticulous efforts that may be required is to sign up with a trustworthy 3PL provider. This can offer tremendous advantages, such as flexibility, cost reductions, security of goods and ultimately peace of mind while achieving and maintaining your prime status. Contact us now to get started.
- Compatibility: Pick a provider whose EDI system works seamlessly with your existing software and technology.
- Scalability: Choose a provider that can grow with your business, handling increased volume and complexity without issues.
- Support: Look for a provider offering strong customer support, ready to help whenever you encounter challenges.
- Security: Ensure they keep your data safe and meet standard security requirements.
- Cost-Effectiveness: Consider upfront and ongoing costs to find a solution that offers value without compromising quality.
- Experience: Opt for a provider with a proven track record in your industry, demonstrating their ability to meet your needs.
By partnering with a 3PL for Seller Fulfilled Prime, you’re making everything quicker and simpler. This means lower costs, faster deals, fewer mistakes, and more time for your team to focus on what matters. Plus, it makes your whole business process smoother.
At MacMillan, we deal with extensive supply chain management and sophisticated reverse logistics capabilities. Our transportation, warehousing, and last-mile delivery services make sure your products get from our warehouse to your customer’s doorstep smoothly and on time. Let us handle the logistics so you can focus on your business. Explore MacMillan’s E-commerce Fulfillment Services, and let us be the driving force behind your thriving e-commerce strategy. Switching to an integrated EDI solution with MacMillan isn’t just about keeping pace with technology—it’s about leading the pack. Let’s move your business forward together.
