Maximizing Your Amazon Sales: Seller Fulfilled Prime

April 5, 2017

Marketplaces Erin Cook By Erin Cook

It is estimated that Amazon has over 65 million Prime members who, on average, spend about $2,486 per year.

With numbers like that, it’s almost a given that you need to seriously start thinking about enrolling in Amazon’s Seller Fulfilled Prime (SFP) program ASAP in order to maximize your Amazon sales.

Why SFP?

According to Amazon, participating in SFP can increase your sales by up to 50% by improving product discoverability (Prime filter) and by helping you win the buy box more often. By participating in the SFP program, you’ll also be able to participate in Amazon Lightning Deals and have the luxury of having Amazon handle all customer service inquiries on those Prime orders.

Unlike Fulfillment by Amazon (FBA), SFP allows you to control your inventory by using your existing fulfillment capabilities. Also, you can protect your margins by picking which items you want to be on Prime. You even have the ability to set up region-specific Prime Shipping templates that limit displaying the Prime badge to regions close to your fulfillment center(s). This is a great option if it’s cost-prohibitive to offer free 2-day nationwide shipping on big, bulky items.  

How do I Participate in SFP?

There are a number of qualifying factors to become an SFP seller. You need to:

  • Offer free 2-day shipping in the lower 48 states to Prime members
  • Offer free standard shipping to all other customers
  • Have an on-time shipment rate of at least 99%
  • Offer free return shipping
  • Have a seller cancellation rate of less than 1%
  • Ship all orders received before 2 pm ET by midnight ET (Orders that come in after the cutoff time do not have to be shipped until the next business day.)  

You’ll also have to buy shipping services for at least 95% of your Prime orders through Amazon.  You can buy shipping directly through an API or within your Amazon Seller Central account.  If you have an existing shipping account with USPS, UPS or FedEx, you’re able to link your account in Seller Central.   

What Are the Costs Involved?

There are no fees to sign up but you may incur incremental shipping costs. There is a trial period that varies between 5 to 90 days depending on how long it takes you to fulfill 200 orders that meet the SFP requirements.

During the trial period, you’ll be able to monitor your metrics within your Seller Central account to make sure you’re hitting all the targets. Once you’ve completed the trial period, you’ll be automatically enrolled into SFP. Within 24 hours the Prime logo will start showing up on the products you choose.

With no fees to sign up and a potential 50% sales lift, Seller Fulfilled Prime should, without question, be on your roadmap.

How to Get Started

To start using SFP, you need to have an Amazon Seller Central account and be registered as a professional seller.  If you don’t have an account, go here and register as a professional seller.

If you’re already selling on Amazon as a third party seller you can check your status by going to Settings > Account Info within your Seller Central account. On the left side of the page, there’s a box called ‘Your Services’ where you’ll be able to see your seller status.

Next, you need to register here. If you’re signed into your Amazon Seller Central account you’ll be taken directly to the registration screen. If you aren’t signed in, you’ll be prompted to log in to your account.

Depending on information already in your Amazon Seller Central account, the registration screen may ask for additional information (primary contact info, warehouse information, etc). Also, if you don’t have any shipping templates setup, it’ll prompt you to set them up.  

Once you fill in the information requested you’ll have to take a tour of the SFP program to complete your registration.  You’ll then get an email to start your trial period.

Happy selling!