Amazon Prime by sellers: The guide for professional sellers

Amazon lässt im „Prime durch Verkäufer“-Programm auch DHL als Transporteur zu.

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.

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Advantages of Amazon Prime by Seller

The Prime logo is so coveted because it offers significant competitive advantages.

  • Customers who have subscribed to Prime tend to buy more frequently on Amazon and
  • generate higher cart values than customers who do not use Prime.
  • Additionally, Prime customers specifically search for products that are part of the Prime offering to take advantage of all the benefits of the subscription – especially fast delivery, sometimes on the same day or at the latest the following day.
  • Furthermore, with Prime, the likelihood increases that the offer wins the Amazon Buy Box.
  • More traffic and an improved conversion rate lead to even more visibility in Amazon search.
  • For “Prime by sellers” products, Amazon takes over the customer service and
  • Sellers who are SFP-qualified have access to Lightning Deals.
  • The “Prime by sellers” program is virtually free compared to FBA, as no additional fees are incurred.
  • At the same time, sellers typically experience a cost reduction through Prime by Seller, for example, in inventory management and through their own terms with shipping service providers.
  • The independence from Amazon is another advantage that should not be underestimated: own shipping packaging, more branding, better product presentation – all of this ultimately contributes to customer loyalty.

Disadvantages of Amazon Prime by Seller

Everything has its price – and sellers should carefully consider whether they want to pay it.

  • The entire responsibility for order processing lies with the SELLERLOGIC.
  • Amazon imposes high requirements on participants of the “Prime by Seller” program that must be met at all times (see below).
  • All processes must function flawlessly. Just a few late deliveries or one too many customer complaints can mean the loss of Prime status.
  • Orders must be processed at all times, including on weekends, on holidays, during school vacations, or when grandma is celebrating her birthday.
  • The customer service is completely handled by Amazon. While this is one less task that online retailers have to manage, they simultaneously lose all control. If a customer complains – for example, because their order was not delivered directly the next day – Amazon will usually comply with the customer’s request and initiate a refund, for instance.
  • The return policies that all SFP sellers on Amazon must agree to can also be a negative point. Customers must be able to return products within 30 days, and after receiving the return, the purchase price of the item must be refunded to the buyer within two days.

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 Seller Fulfilled Prime program from Amazon is known as "Prime by Seller".

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:

  • professional seller account
  • nationwide availability and shipping from a domestic warehouse
  • free shipping
  • shipping within one day of order receipt for at least 99% of all orders
  • shipping of orders placed by 1 PM on the same day
  • compliance with the delivery promise (depending on category, warehouse location, and product dimensions)
  • on-time delivery rate of at least 90%
  • valid tracking number rate of at least 99%
  • cancellation rate of less than or equal to 0.5%
  • free returns according to Amazon’s policies

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.

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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.

  1. Registration in Amazon Seller Central
    Navigate to the “Prime by Seller” section in the program settings of Seller Central. Apply there for participation. Amazon will then check whether your seller account meets the requirements (e.g., low cancellation rate, etc.).
  2. Passing the trial phase
    If the initial review is positive, the trial phase begins, during which it must be ensured that the required standards are met. During the trial period, all SFP requirements must be fulfilled, although the corresponding products will not yet receive the Prime logo.
  3. Creating a shipping template for Prime
    Create a so-called shipping template in Seller Central. You can find this under “Manage Inventory.” Click on “Change Shipping Template” in the product’s drop-down menu, then on “Change Shipping Template,” and then on “Select Prime Shipping Template.” There you can set the delivery regions and times for Prime orders. Alternatively, you can choose the route through the Inventory Assistant.
  4. Integration of the shipping service provider
    To create shipping labels, you need to link your shipping account with your Amazon account. To do this, go to “Seller Account Information” in the settings. Under Shipping and “Returns,” you will find the section “Purchase Shipping Labels.” There, you can manage the carrier accounts.
  5. Passing the trial phase
    During the trial period, all requirements of the “Prime by Seller” program apply. Orders must be processed and shipped promptly, the delivery time must be adhered to, and all metrics such as the cancellation rate must be kept within the target range.

After successfully completing the trial phase, the corresponding ASINs automatically receive the Prime logo.

Conclusion

Prime by Seller in Austria? Some sellers have already gathered experiences with it.

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

What is Amazon Prime for sellers?

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.

What does it mean when Amazon is the seller?

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.

What does Prime shipping mean?

Prime shipping refers to the fast, often free shipping for Amazon Prime members, usually within one to two days.

Who pays the shipping costs for Prime by sellers?

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.

Can DHL also be used for Prime by sellers?

Yes, Amazon SFP sellers are no longer tied to a specific shipping company, but can work with DPD as well as DHL, Hermes, etc.

Is Prime by Seller free?

Yes, there are no additional fees. The Amazon selling fees also remain unchanged.

How long does the “Prime by Seller” trial phase last?

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.

For which sellers is SFP particularly suitable?

SFP is particularly suitable for sellers who have a robust logistics system and can regularly handle high shipping volumes.

Image credits in the order of the images: © stock.adobe.com – Mounir / © stock.adobe.com – Vivid Canvas / © stock.adobe.com – Stock Rocket

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