Amazon Prime by Sellers: The Guide for Professional Sellers
Fulfillment by Amazon (FBA) is essentially the only way to obtain the coveted Prime badge for a product, which promises every customer on Amazon: fast shipping, flexible returns, and attentive customer service – in short: excellent quality in all respects. This promise is appealing. More than 200 million people worldwide use Amazon Prime, and the introduction of the program is considered a real growth driver for the various marketplaces. However, not every seller wants to use Amazon FBA. Especially professional and large marketplace sellers have their own well-functioning logistics. Outsourcing fulfillment can incur additional costs in such cases. To give these sellers the opportunity to reach the growing Prime customer base, Amazon has introduced the “Seller Fulfilled Prime” program.
However, participation in Prime by Seller or Seller Fulfilled Prime (Amazon SFP) is not open to everyone, and there are strict quality criteria that interested companies must also demonstrate. In this blog post, we clarify what exactly Seller Fulfilled Prime is, what requirements must be met, and how you can successfully apply.
What is Seller Fulfilled Prime?
Many Amazon sellers previously avoided Seller Fulfilled Prime because they could not freely choose the shipping provider. However, since sellers are no longer tied to a specific transport service, the program has gained significant attractiveness. Products shipped via Seller Fulfilled Prime are part of Amazon Prime but are sent directly from the seller’s own warehouse.
For sellers, this means that they can use their own logistics for storage, picking, packing, and shipping. However, it also means that these internal processes must function smoothly and reliably. Amazon tests this during a trial phase beforehand.
Advantages of Amazon Seller Fulfilled Prime
The Prime logo is highly sought after because it provides significant competitive advantages.
Disadvantages of Amazon Seller Fulfilled Prime
Everything comes at a cost – and sellers should carefully consider whether they want to pay it.
When is the Seller Fulfilled Prime option worthwhile for Amazon sellers?
The counterpart to Seller Fulfilled Prime is Fulfillment by Amazon. In this case, the seller does not store and ship their goods themselves; instead, Amazon takes care of the entire fulfillment process. The items are stored in an Amazon logistics center and are packed and shipped when an order is placed. Returns are also handled there. This has many advantages, but also some downsides – for example, such a service is not free, and in addition to the sales fees, there are also FBA fees.
However, Seller Fulfilled Prime is not automatically the better solution. As a rule of thumb, SFP is particularly suitable for products that incur high costs in the FBA program. This typically happens because the products are too large or heavy, are only sold seasonally and therefore remain in Amazon’s warehouse for too long, or when there are specific requirements for product safety or packaging.
In any case, those interested should carefully calculate the costs first before deciding on one program or the other.
What are the requirements for Amazon SFP?
The “Seller Fulfilled Prime” program has strict requirements that should not be underestimated. Amazon ultimately prioritizes the customer and has become the largest player in e-commerce. Those who cannot provide the corresponding service quality will be filtered out. In order for sellers to ship products via Seller Fulfilled Prime, the following requirements must be met:
Since 2023, in some cases, only the top 90% receive the Prime badge. Amazon reassesses this hourly and considers various metrics, with the delivery time being crucial. For the marketplaces in Germany, France, Spain, the Netherlands, and Belgium, all offers with a delivery time of a maximum of three days receive Prime status, while offers with more than seven delivery days do not qualify for Prime at all. For delivery times of four to a maximum of seven days, the aforementioned 90% rule applies.
Not all product categories have the same deadlines, as, for example, very bulky products simply have longer delivery times than small and lightweight items. There are also exceptions for international shipments. Therefore, sellers compete only within the same product class.
Implementation of the “Seller Fulfilled Prime” Program
Shipping Service Provider
The rumor that SFP sellers are bound to the shipping service provider DPD still persists. However, this has not been the case since 2022, allowing for collaboration with DHL, Hermes, and others. This also has another advantage: companies can now negotiate their own business terms with the respective transport service or utilize their already agreed-upon terms instead of having to accept the conditions negotiated by Amazon.
The most common delivery services are certainly DHL, Hermes, or DPD, but sellers could also opt for Amazon Shipping, UPS, or any other service. However, there is much to be said for DHL, as customers particularly trust this shipping company.
Registration and Trial Period
To qualify for Amazon SFP, sellers must register in Seller Central and successfully complete a trial period. Below, we provide an overview of the required steps.
After successfully completing the trial period, the corresponding ASINs automatically receive the Prime badge.
Conclusion
In summary, the “Seller Fulfilled Prime” program offers a valuable alternative for sellers who want to maintain their own logistics processes and business terms while still gaining access to the growing Amazon Prime customer base. The program allows them to ship products directly from their own warehouse while carrying the coveted Prime badge, without being reliant on Amazon FBA.
A clear advantage for Prime sellers is the visibility and trust that the Prime badge generates. Prime customers appreciate fast delivery and excellent customer service, and they tend to shop more frequently and purchase more on Amazon. Additionally, sellers benefit from an improved chance of winning the Buy Box and enhanced visibility in Amazon search results.
However, the program also comes with challenges: sellers bear full responsibility for meeting the high service requirements set by Amazon, such as timely delivery and low cancellation rates. Therefore, internal logistics processes must function smoothly and reliably to avoid violations of the requirements.
Ultimately, the “Seller Fulfilled Prime” program is particularly suitable for sellers with specialized products that would incur high costs in the FBA program.
Frequently Asked Questions
Amazon Prime for Sellers, also known as “Seller Fulfilled Prime,” allows sellers to ship their products with the Prime badge directly from their own warehouse while still offering Prime benefits such as fast shipping and customer service.
When Amazon is the seller, it buys and sells the product itself, stores it in its own fulfillment centers, and handles shipping, customer service, and returns.
Prime Shipping refers to the fast, often free shipping for Amazon Prime members, typically within one to two days.
The shipping costs are solely borne by the seller. They can rely on the corresponding business terms negotiated with the chosen shipping provider. For non-Prime customers, shipping costs of up to €7.99 may be charged.
Yes, Amazon SFP sellers are no longer tied to a specific shipping company and can work with DPD as well as DHL, Hermes, and others.
Yes, there are no additional fees. The Amazon selling fees also remain unchanged.
There is no set duration for the trial period. This has advantages, as it gives sellers some time to adjust their shipping processes accordingly and get their metrics under control. On the other hand, it also means a certain level of uncertainty regarding when Amazon considers the trial period to be over and the Prime status takes effect.
SFP is particularly suitable for sellers who have a robust logistics system and can regularly handle high shipping volumes.
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