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If you are an Amazon seller, you may be wondering if you should consider the Seller Fulfilled Prime (SFP) program. SFP allows sellers to offer Prime-eligible products without using Amazon's fulfillment network, which can be an attractive option for some sellers. However, in order to participate in SFP, sellers must meet certain requirements and criteria, which may not be feasible for everyone. In this context, it is important to analyze the requirements and determine if it is the right option for your business.
What is Seller Fulfilled Prime (SFP)?
Seller Fulfilled Prime (SFP) is a program offered by Amazon that allows sellers to offer Prime-eligible items without using Amazon's fulfillment services. Instead, sellers can fulfill orders directly from their own warehouse, or with a 3PL partner. It allows merchants to offer customers the benefits of Amazon Prime, such as free two-day shipping, to customers who have a Prime membership.
The Benefits of SFP
The SFP program can be a cost-effective way to increase sales and improve your profitability while gaining better control over the fulfillment process. However, it also comes with additional responsibility and potential costs, such as shipping fees and the necessity to maintain adequate inventory levels, so it is important that you carefully analyze the benefits of SFP to determine if it is the right option for your business.
- You can boost your sales by offering Prime-eligible products. Amazon's large and loyal base of Prime customers may be more likely to purchase products that are eligible for fast, free shipping.
- Fulfillment can take place directly from the seller's warehouse or other location, giving them greater control over the fulfillment process.
- The SFP merchant can save money on fulfillment fees compared to using Amazon's fulfillment services, which may charge additional fees for warehousing, picking, packing, and shipping.
- Provide greater flexibility and control over fulfillment by setting your own shipping and handling times, as well as choosing carriers that meet your needs.
- 24/7 customer service by Amazon in the language of the marketplace which ensures you can resolve issues quickly
Seller Fulfilled Prime Requirements
For now, SFP is only available to high-performing Amazon sellers with an active Amazon account in good standing and a professional sales plan. To qualify for the Seller Fulfilled Prime (SFP) program on Amazon, sellers must meet certain requirements and criteria, including:
- Sellers must have a history of fulfilling orders on time and meeting customer expectations.
- Maintain high-performance metrics, including a cancellation rate of less than 0.5%, a late shipment rate of less than 4%, and an order defect rate of less than 1%.
- Sellers must have the ability to ship Prime orders with two-day delivery and provide tracking information. Your logistics skills in your warehouse will be evaluated (picking, packing, and packing to same-day shipment).
- SFP sellers must offer effective customer service, including responding promptly to customer inquiries and providing easy returns.
- SFP sellers must comply with Amazon's policies and guidelines, including quality and safety. Also, they should ensure that their products meet all relevant safety and quality standards.
- Sellers must agree to Amazon's return policy.
- SFP sellers must maintain high-performance metrics, including a two-day delivery time, low cancellation rate, and low order defect rate, among others. Sellers should regularly monitor their performance metrics to ensure they remain eligible for SFP.
- Sellers are required to maintain Prime service levels which Amazon will monitor closely.
- Maintain a valid 99% tracking rate.
In order for the SFP to be unlocked, vendors must complete a trial period and successfully pass it. For 25 consecutive shipments during 5 days, the vendor must meet the required performance parameters (listed above) and SLA (service level agreement), which is where byrd comes into play to help you be successful.
How byrd Can Help You Become SFP Eligible
If you are looking for more flexibility and to have more control over your fulfillment process, we would like to introduce you to our services. With byrd you can smoothly transition to an SFP seller and keep up with all the SFP requirements. Our services facilitate the change and help you meet all the requirements needed by Amazon. Thanks to our technology and management tools such as real-time inventory tracking, and returns portal we can help you to meet the requirements and unlock SFP services for your e-commerce business.
In case your e-commerce company does not meet the requirements the Amazon Prime badge will be suspended until Amazon receives and accepts an action plan. byrd can play an important role here and assist you in developing an action plan with strategic initiatives in case this happens.
Conclusion
By working with a 3PL like byrd, you can outsource your fulfillment operations and meet the requirements for SFP. We provide warehousing, inventory management, and order fulfillment services, which are necessary to meet the fulfillment center requirements to qualify for SFP. This can save time and resources and allow you to focus on growing your business while offering customers the benefits of Amazon Prime. Contact one of our experts and request a quote now.