Amazon Prime by sellers: The guide for professional sellers
Fulfillment by Amazon (FBA) is actually the only way to obtain the coveted Prime badge for a product, which promises every customer on Amazon: fast shipping, flexible returns, courteous 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 such sellers the opportunity to reach the growing Prime customer base, Amazon has introduced the “Prime by sellers” 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 Prime by sellers is, what requirements must be met, and how you can successfully apply.
What is Prime by sellers?
Many Amazon sellers previously avoided Prime by Seller because the shipping service provider could not be freely chosen. However, since sellers are no longer tied to a shipping service, the program has gained significant attractiveness. Products that are shipped via Prime by sellers are indeed part of Amazon Prime but are shipped directly from the respective seller’s warehouse.
For sellers, this means that they can use their own logistics from storage to picking and packing to shipping. However, it also means that these internal processes must function smoothly and reliably. Amazon tests whether this is the case during a trial phase beforehand.
Advantages of Amazon Prime by Seller
The Prime logo is so coveted because it offers significant competitive advantages.
Disadvantages of Amazon Prime by Seller
Everything has its price – 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 Prime by Seller is Fulfillment by Amazon. In this case, the seller does not store and ship their goods themselves, but Amazon takes over the entire fulfillment process. The items are stored in an Amazon logistics center and are packaged and shipped upon order. Returns are also processed there. This has many advantages, but also some downsides – for example, such a service is of course not free, and in addition to the selling fees, there are also FBA fees.
Nevertheless, Prime by Seller is not automatically the better solution. As a rule of thumb, SFP is primarily suitable for products that incur high costs in the FBA program. This usually happens because products are too large or too 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, interested parties should first calculate the costs precisely before deciding on one program or the other.
What are Amazon’s requirements for SFP?
The “Prime by Seller” program has strict requirements that should not be underestimated. Amazon ultimately prioritizes the customer and has thus 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 Prime by Seller, the following requirements must be met:
Since 2023, only the top 90% receive the Prime logo in some cases. Amazon recalculates this hourly and takes various metrics into account, but the delivery time is 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 gain any Prime eligibility at all. For four to a maximum of seven days, the 90% rule described above applies.
Not all product categories have the same deadlines, as very bulky products, for example, simply have longer delivery times than small and lightweight items. There are also exceptions for international shipments. Sellers therefore compete only within the same product class.
Implementation of the “Prime by Seller” program
shipping service provider
The rumor still persists that as an SFP seller, one is bound to the shipping service provider DPD. However, this has not been the case since 2022, so collaboration with DHL, Hermes, and others is also possible. This has another advantage: companies can now negotiate their own business terms with the respective transport service or use their already agreed terms instead of having to accept the terms 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 in particular trust this shipping company.
Registration and trial phase
To qualify for Amazon SFP, sellers must register in Seller Central and successfully complete a trial phase. Below, we provide an overview of the required steps.
After successfully completing the trial phase, the corresponding ASINs automatically receive the Prime logo.
Conclusion
In summary, the “Prime by Seller” 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 logo, 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 tend to shop more frequently and in larger quantities on Amazon. Additionally, sellers benefit from an improved chance of winning the Buy Box and enhanced visibility in Amazon search.
However, the program also comes with challenges: sellers bear full responsibility for meeting the high service requirements set by Amazon – such as on-time delivery and low cancellation rates. Therefore, internal logistics processes must function smoothly and reliably to avoid violations of the requirements.
Ultimately, the “Prime by Seller” program is particularly suitable for sellers with special 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, Amazon buys and sells the product itself, stores it in its own fulfillment centers, and takes care of shipping, customer service, and returns.
Prime shipping refers to the fast, often free shipping for Amazon Prime members, usually within one to two days.
The shipping costs are borne solely by the seller. For this, they can rely on the corresponding business conditions negotiated with the chosen shipping service 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, but can work with DPD as well as DHL, Hermes, etc.
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 sellers have some time to adjust their shipping processes accordingly and get their metrics under control. On the other hand, this also means a certain uncertainty about when Amazon considers the trial phase 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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