How to Become an Amazon Prime Seller
What’s stopping you from becoming an Amazon Prime Seller? It’s not as hard as you might think, and the benefits outweigh any hassle in many ways.
Amazon Prime grants many benefits to its enrolled sellers. For example, Amazon prioritizes your shipments. And you’ll also showcase the coveted Prime Badge in your product listings.
Prime products get better search ranks and encourage positive reviews. Plus, Prime items also boost your chances to earn a place in the Buy Box. Amazon Prime products receive higher placements overall in search rankings.
Lucky for you, there’s no reason to stop you from enrolling in the program. Today, we’ll show you what it takes to be a full-time Amazon Prime seller.
What Is Amazon Prime?
The Prime membership program is Amazon’s most successful feature. It’s available in 22 countries and holds 200 million members worldwide.
As of 2021, the US hosts 148.6 million Prime members, according to Backlinko. That’s 74% of all Prime subscriptions in the world!
Prime’s success is due to its customer-centric model. Subscribers get access to streaming content, Whole Foods promos, and free 2-day deliveries.
All these perks are available at $14.99 per month.
There’s also the beauty of Prime Day. This is Amazon’s biggest date. It’s the time when Prime customers find the best deals in the marketplace.
Plus, it’s also the day when sellers make the most sales of the year. Backlinko also states that Prime Day 2021 collected 11.79 billion in revenue.
But the benefits of Amazon Prime go beyond a yearly sale. For starters, it’s a venue to engage with a unique type of customer.
Prime members buy constantly; they’re always searching for unique offers, and they notice brands that please their needs.
Also, many Prime subscribers buy only from Amazon Prime sellers. Therefore, the Prime program is a ripe field to turn engaged buyers into loyal followers.
How to Become an Amazon Prime Seller
Some merchants still believe that Amazon FBA is the only way into Amazon Prime. That’s not the case at all.
In fact, there are two other paths for sellers to enroll in Amazon Prime. These are Seller-Fulfilled Prime, and becoming an Amazon Vendor.
Let’s review these gateways to Amazon prime separately. We’ll lay out their perks and setbacks, so you can decide which is the best approach for you.
Fulfillment by Amazon
This is by far the easiest and most popular method to sell on Amazon Prime. That’s because Fulfillment by Amazon (FBA) grants automatic access to the Prime program.
Amazon FBA started out back in 2006. It developed as Amazon’s way of sharing its logistics mechanisms with third-party sellers.
This means that it is Amazon that handles most of the post-sale funnel – for a monthly fee. That includes product storage, shipment, delivery, and customer services.
In short, Amazon handles the legwork. Sellers only need to worry about keeping a healthy inventory and making sales online.
Now, handling logistics is one great benefit for sellers. But Amazon FBA doesn’t stop here. Let’s look at the program’s key benefits:
- Association with Amazon. Many sellers don’t realize they’re shopping from third-party sellers at first. So, you’ll enjoy Amazon’s reputation for speedy deliveries and quality packaging.
- Better search ranks. FBA products carry Amazon’s endorsement. So, the A9 algorithm will prioritize your products over competitors’.
- Customer delight. Amazon FBA will handle customer services, 24/7. So, buying users will get the best attention and service at all times.
And as we said, all FBA items get all Prime benefits from the start. Thus, FBA sellers automatically earn the right to showcase the Prime Badge.
FBA is almost a hands-off approach to Amazon sales for Sellers. For those who’d prefer to have more control – including Prime benefits – there’s Seller-Fulfilled Prime (SFP).
Unlike FBA brands, SFP merchants can tackle them on shipping and delivery operations. But SFP has a waiting list for interested sellers. Plus, it comes with stringent requirements.
First off, you should have Premium Shipping capabilities. To earn this privilege, you must keep a cancellation rate under 0.5%. You also need a 94% valid tracking ID, and a 92% on-time delivery rate.
Amazon also requires SFP sellers to meet the following commitments:
The trial period requires merchants to fulfill 200 Prime orders. After that threshold, SFP sellers will earn all Amazon Prime perks for sellers.
But why go with SFP, when you can smooth out your sales process using FBA? Let’s review the benefits of SFP:
- Low Storage and Shipping Costs. You forfeit Amazon’s storage and fulfillment fees. So, you save on shipping overweight items, while maintaining profits.
- Inventory management. Take control of stock levels, and resupply the warehouse at your own rate. Plus, you’ll also stop paying fees for long-term storage.
- Quality control. Ensure all your products leave the warehouse safely. Plus, you’ll keep an eye on customer returns to manage replacements or refunds.
So, the SFP model allows you to protect your brand from inventory mishaps, or even refund scams. Furthermore, you’ll forfeit all FBA fees.
Related content: New SFP requisites for Sellers
Become an Amazon Vendor
Vendors are also known as first-party sellers. According to Jungle Scout, as of 2021, they comprise 21% of Amazon sellers. The vendor initiative is an invite-only initiative for manufacturers.
Here’s the idea: vendors sell directly to Amazon as wholesales. Then, it’s Amazon that sells and delivers the products to consumers.
The great advantage of this program is that products enjoy all of Amazon’s benefits. These include the benefits of Amazon Prime. Plus, vendors also earn the badge “Ships from and sold by Amazon”.
The great advantage of this program is that products enjoy all of Amazon’s benefits. That’s because vendors transfer ownership to Amazon after selling bulk orders.
Keep in mind that Vendor is an invitation-exclusive program. If you think your business could benefit from it, here’s how you can get invited:
- Request an invite from Amazon.
- Move up your status into the “top” brands on Amazon.
- Enjoy high selling rates on FBA or SFP items.
Some sellers consider the vendor program the easiest way to sell in the marketplace. That said, you’ll have to hand almost all sales control to Amazon.
Amazon Prime Day is going live in July 2022, and every seller wants in on the big date. But first, you need access to Amazon’s flagship program.
FBA and Vendors have the easiest path into Amazon Prime. The marketplace takes care of most of the legwork for a special fee. There’s a bit more hassle when choosing SFP. That said, you get to control most of the process.
Consider the type of Amazon store you operate and the products you sell. Also, review the competition, and the market demand for your offers. Your gateway to prime will depend on your needs as a business.
No matter your choice, try not to miss out on Amazon Prime. It’s a win-win program for both sellers and buyers. You’ll gain access to a unique customer base, and many opportunities to drive sales!
Image credits in order of appearance: © AMZ Advisers / © Amazon