A Complete Guide To Amazon Seller Fulfilled Prime
With the introduction of the Amazon SFP scheme, many SFP merchants benefit. Therefore, SFP is becoming more and more popular. More and more merchants have applied to become members of SFP. This article mainly introduces what is SFP, its advantages, registration qualifications, and the differences between it and Amazon FBA, so as to help you have a better understanding of SFP, so as to help you choose a more suitable plan for your company, and obtain more benefits.
What is Amazon SFP?
SFP allows sellers to contact Amazon Prime members and sell their products to them. Sellers who are eligible to join SFP can store their goods in their own warehouses (they need to meet certain standards), and then they can distribute their products to Prime members and obtain the Prime logo. SFP can list products that meet Prime conditions, while the seller can still maintain control over order delivery, rather than entrusting it to Amazon. In addition to cost savings, SFP also allows sellers to reach high-spending customers that their competitors may not be able to reach.
- Sellers can reach Prime customers and get more sales with guaranteed delivery and better Buy Box competition.
- Sellers can use their own warehouses, so you have complete control over inventory, delivery, and packaging, which means you can save more money on paying Amazon.
What are the Requirements to Qualify for Seller Fulfilled Prime?
1. Delivery on Time
More than 99% of orders need to be sent on time. Failure to meet this requirement may immediately revoke your membership.
2. Order Cancellation Rate
Amazon believes that the order cancellation rate is an indicator of customer satisfaction, so the order cancellation rate of SFP sellers must be lower than 1%. This may mean that you have to improve customer service to reduce order cancellations.
3. Packaging and Transportation
You need to purchase shipping labels from Amazon’s shipping website, and you also need to use Amazon-supported express companies to ship products.
4. Return of the Goods
You must strictly comply with Amazon’s return policy, so you should be familiar with these rules and comply with relevant requirements before starting.
Prime sellers must store their inventory in the country they sell.
What is Amazon FBA？
Amazon FBA (Fulfillment by Amazon) means that the seller directly sends the inventory of products sold on Amazon to the warehouse in Amazon’s local market. After the customer places an order, Amazon provides a one-stop logistics service of picking and packaging, distribution, collection, customer service, and return processing, and at the same time, it will charge a certain fee.
- It can help the seller to improve the listing ranking, make the seller become a featured seller, and obtain a shopping cart, so as to improve the trust of customers and help improve sales.
- The delivery time is fast and guaranteed, and the goods can be delivered to the buyer in time to reduce the poor comments of consumers due to logistics problems.
- Various delivery channels can satisfy the seller’s demand for cross-channel operation.
Selling on Amazon: FBA vs. SFP
FBA means that your inventory is delivered entirely by Amazon. All you have to do is ship your product to Amazon’s distribution center, and when a customer buys it, Amazon picks it up, packs it, and ships it. For SFP, the seller will process the order, and you can complete everything from goods selection, packaging to transportation.
Honest Fulphilment is also a good choice for merchants registering SFP members. Honest FulPhilment provides a variety of services, including order processing, packaging, and transportation. We can deliver your products to consumers around the world.
FBA users also need to bear the costs of constant changes, such as helping you process orders and storing goods in Amazon’s inventory. Sometimes these costs are even higher than the profits. Instead, SFP does not have to pay any fulfillment fees to Amazon, but it does have to take its own time to process the orders and pay for shipping.
For FBA, Amazon is responsible for everything, and orders are delivered by Amazon, which can save a lot of energy and do not build your own inventory, but you need to pay additional fees. For SFP, you can control your inventory at any time because you have your own warehouse, but a series of arrangements from purchasing to maintaining inventory may require high costs.
4. Inventory Control
This is closely related to the storage problem mentioned above. With FBA, sellers cannot monitor their own control. If they promote products on other platforms, they will be restricted. But with SFP, sellers can monitor their inventory at any time.
5. Return Goods
For FBA, all returns are handled by Amazon, which can help enterprises save time and resources. For SFP, the seller needs to be responsible for a series of returns, which requires the seller to have its own efficient returns and customer service department.
To sum up, it is crucial to choose a good fulfillment platform and partner for eCommerce. Not only can you save a lot of money, but also save time and effort. Honest Fulphilment is a good choice. We not only provide all-around integrated service but also have an efficient delivery team and good after-sales service that can handle and solve customer feedback and problems in a timely manner. If you want to know more, please feel free to contact us.
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