Introduction
When selling on Amazon, one of the most important decisions a seller can make is how to fulfill their orders. The two primary options are Amazon FBA (Fulfilled by Amazon) and Amazon FBM (Fulfilled by Merchant). Each has its own advantages and drawbacks, but one common goal for many sellers is achieving the coveted Amazon Prime badge, which significantly boosts sales and visibility. This blog explores whether Amazon FBM sellers can offer Prime fulfillment and how they can achieve this goal.
Related article: FBA vs FBM: How to Choose The Right Fulfillment Method to Sell on Amazon?
What is Amazon FBM?
Amazon FBM (Fulfilled by Merchant) is an arrangement where sellers list their products on Amazon, but handle storage, packing, shipping, and customer service themselves. Advantages of FBM include:
- Greater control over inventory and fulfillment processes.
- Potential cost savings, especially for large or low-margin items.
- Flexibility in handling unique or customized products.
Source: Amazon.com
However, Amazon FBM sellers typically do not automatically qualify for Amazon Prime, which can limit their visibility and appeal to Prime members. Further, we will discuss how Amazon FBM sellers can qualify for Amazon Prime.
What is Amazon Prime?
Amazon Prime is a subscription service offering members benefits such as free same-day delivery, access to video streaming services, exclusive deals, and more. Prime members are known for their higher spending and loyalty to the platform, making Prime eligibility a significant advantage for sellers.
Source:Amazon.com
Benefits of Offering Prime Fulfillment
Increased Visibility and Sales: Products with the Prime badge often rank higher in search results and are preferred by Prime members, leading to increased sales.
Enhanced Customer Trust and Loyalty: Prime products benefit from Amazon’s reputation for fast and reliable shipping, boosting customer confidence.
Faster Shipping Times: Offering Prime fulfillment ensures that products reach customers quickly, improving the overall shopping experience and reducing the likelihood of returns.
What is Amazon Seller Fulfilled Prime (SFP) Which Offers Prime Badging to FBM Sellers?
Amazon SFP (Seller Fulfilled Prime) is a program that allows FBM sellers to offer Amazon Prime shipping directly from their warehouses. This enables Amazon FBM sellers to display the Prime badge on their listings without sending their inventory to Amazon’s fulfillment centers.
Source: Amazon.com
How Amazon SFP Differs from FBA and FBM
Amazon SFP vs. FBA: While both SFP and FBA provide Prime eligibility, FBA involves sending inventory to Amazon for fulfillment, whereas Amazon SFP allows sellers to fulfill orders themselves. This offers more control but requires sellers to meet stringent requirements.
Amazon SFP vs. FBM: Traditional Amazon FBM lacks the Prime badge and the associated benefits. Amazon SFP offers the control and flexibility of Amazon FBM while providing the sales benefits of Prime.
What are the Requirements for Amazon Seller Fulfilled Prime (SFP)?
Amazon SFP (Seller Fulfilled Prime) allows you to offer Prime benefits on your self-fulfilled products. Becoming an Amazon SFP seller involves meeting specific pre-qualification requirements, completing a trial period, and adhering to ongoing performance standards. Here’s a detailed guide on how to achieve this by becoming an Amazon SFP seller:
Pre-Qualification Requirements (past 90 days):
Before you can apply for Amazon SFP, your seller account must meet the following criteria over the past 90 days:
- On-Time Shipping Rate: You must have At least 99% of orders shipped on time.
- Tracking Rate: Valid tracking rate should be above 95%
- Self-Fulfilled Orders: You must have self-fulfilled at least 100 packages.
- Cancellation Rate: The order cancellation rate must be below 2.5%.
- Late Shipment Rate: The late shipment rate should be less than 4%.
Trial Period Requirements (30 days):
Once you meet the pre-qualification criteria and are accepted into the Amazon SFP trial program, you will need to fulfill the following requirements over a 30-day period:
- Prime Orders: Ship at least 100 Prime orders.
- On-Time Delivery Rate: You must achieve an on-time delivery rate of at least 93.5%.
- Valid Tracking Rate: Maintain a valid tracking rate of at least 99%.
- Cancellation Rate: Keep the seller-initiated cancellation rate below 0.5%.
- Delivery Speeds: You must meet minimum thresholds for one-day & two-day delivery speeds as detailed in Amazon Seller Central.
- Nationwide Coverage: Provide nationwide coverage for standard-size products.
- Weekend Delivery and Pickup: Use shipping methods that offer weekend delivery and pickup.
Additional Requirements:
To maintain your status and continue offering Prime benefits, you must adhere to the following ongoing requirements:
- Professional Selling Account: Maintain an active Professional Selling Account on Amazon.
- US Domestic Shipping Address: Have a US domestic shipping address.
- Amazon Buy Shipping Services: Use Amazon Buy Shipping Services for most orders to ensure compliance with delivery and tracking standards.
- Free Returns: Offer free returns to customers.
Related article: Amazon Individual Seller Vs Professional Seller Plans.
Steps to Become an Amazon Seller Fulfilled Prime (SFP) Seller
1. Application Process
Sign Up: Log into your Amazon Seller Central account, navigate to the Amazon SFP section, and express your interest in the program.
Source: Amazon.com
Eligibility Check: Amazon will review your account to ensure it meets the pre-qualification requirements.
Related article: Step-By-Step Guide to Create An Amazon Seller Central Account.
2. Meeting Pre-Qualification Requirements
Performance Metrics: Ensure your performance metrics over the past 90 days meet the necessary thresholds for on-time shipping, tracking, cancellation, and late shipment rates.
Self-Fulfilled Packages: Verify that you have self-fulfilled at least 100 packages.
3. Approval and Trial Period
Initial Approval: Once your account is reviewed and approved, you will enter the trial period.
Trial Performance: During the 30-day trial period, you must meet the specific performance standards for Prime orders, delivery rates, and tracking.
During the trial period, Prime branding will not be displayed on your products. Only after shipping at least 100 Prime packages and meeting the Seller Fulfilled Prime requirements will you be fully enrolled in the program, and Prime branding will then be displayed on your offers.
To evaluate your brand’s current eligibility for the program, Amazon provides a Seller Fulfilled Prime dashboard that tracks your:
- Program Status
- Delivery speed
Source: Amazon.com
- Delivery performance
The dashboard also includes helpful recommendations and best practices to assist with improving your metrics.
If any requirements are missed, you will receive up to three email alerts before being revoked from the program. However, you can re-enroll at a later time once you meet the requirements. Participation in the program is entirely based on your brand’s ability to meet the Amazon Seller Fulfilled Prime standards.
4. Completing the Trial Period
Monitor Performance: Regularly monitor your performance metrics to ensure compliance with the trial period requirements.
Adjust Operations: Make necessary adjustments to your operations, such as optimizing shipping processes and partnering with reliable carriers.
5. Achieving Full SFP Status
Successful Completion: Upon successful completion of the trial period, you will be granted full SFP status.
Ongoing Compliance: Continue to meet Amazon’s performance standards to maintain your SFP status and Prime eligibility.
So, Why Should You Opt for Amazon SFP As A FBM Seller?
Amazon FBM sellers can indeed offer Prime fulfillment through the Amazon Seller Fulfilled Prime (SFP) program. By meeting stringent performance standards and adhering to specific shipping and service requirements, Amazon FBM sellers can achieve the coveted Prime badge without utilizing Amazon’s fulfillment centers. This enables them to enjoy the benefits of increased visibility, customer trust, and faster shipping times.
By following the steps to become an Amazon SFP (Seller Fulfilled Prime) seller, FBM (Fulfillment by Merchant) merchants can enhance their competitive edge and boost their sales on the platform. However, managing this process and handling a large inventory can be challenging.
Are You an Amazon Merchant Aiming to Grow Your Business?
At Epiphany Infotech, we empower Amazon sellers to concentrate on procurement and order fulfillment while we expertly manage the rest. Our specialized services include:
- Amazon Inventory Management
- Amazon FBA Inventory Management
- Amazon SFP Management
- Amazon Advertising Solutions such as:
- Amazon Sponsored Products ads
- Amazon Sponsored Brands ads
- Amazon Sponsored Display ads
Our services are designed to be cost-effective, helping you achieve your Amazon sales targets and secure top rankings by optimizing your presence on the platform.
Contact us now for a free consultation and see how we can help you grow your Amazon business!
Anchal Narang works as a Digital Marketing expert at Epiphany Infotech in India. She specializes in On-page and Off-page SEO, with a particular enthusiasm for Amazon marketing management and PPC marketing. Beyond her professional role, she maintains an insatiable curiosity for the latest digital advertising strategies and technology developments.
