Any retailer would have understood the value of selling on Amazon by now, and more specifically, the value of selling on Amazon Prime. You...
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Any retailer
would have understood the value of selling on Amazon by now, and more
specifically, the value of selling on Amazon Prime. You can gain access to
lucrative Prime shelves through the FBA (Fulfillment by Amazon) and SFP (Seller
Fulfilled Prime) programs.
Even though
both systems are intended to assist you in selling on Amazon Prime, it is the
only similarity between them. Based on their profitability, objectives, and
size, SFP and FBA are different from one another and each has qualities that
are certain to appeal to a small number of enterprises.
Reach your consumers without jeopardizing your brand, business, or revenues with Amazon's quick and stringent shipping criteria and to satisfy your continuous sales targets. Where SFP plays a crucial role is in this situation.
Let's
examine this carefully.
Table of
Content
Seller
Fulfilled Prime (SFP) is what, exactly?
An overview
of SFP:
SFP
Requirements for Amazon
The
Distinction Between SFP and Premium Shipping
How Come
Amazon Launched SFP?
Key
distinctions between SFP and FBA
How to
proceed if your Seller Fulfilled Prime account has been suspended.
Pros and
Cons of utilizing SFP
Conclusion
Seller
Fulfilled Prime (SFP) is what, exactly?
One of the
best order fulfillment systems provided by Amazon allows high-volume merchants
to sell under their Prime Label and ship Prime orders to customers directly in
two days thanks to Seller Fulfilled Prime.
The start of
this program began in 2015. But in order to sign up for one, you must meet the
SFP requirements. By emphasizing the Prime Badge after enrollment, it can
assist merchants in improving the discoverability of their product listings.
Amazon
claims that "Seller fulfilled product listings that were Prime-eligible
for the first time via SFP experienced a sales uplift of over 50% on
average."
An
overview of SFP:
· A store who has been handling their
own shipping will benefit from SFP the most.
· SFP was established to relieve the strain on Amazon's warehouses or stocks that were at capacity while still upholding excellent shipping standards.
· After completing his or her trial
period, a vendor can become eligible for the SFP program.
· SFP and FBA shouldn't be mixed up.
Both are totally distinct plans.
· Utilizing Amazon's delivery services,
adhering to their return rules, delivering 99% of goods on schedule, etc. are
just a few of the fundamental SFP requirements.
· A merchant should offer free standard
shipping when using SFP. Joining this program should not, however, solely be
focused on cost.
SFP
Requirements for Amazon
Not all
sellers are eligible for SFP. SFP is not available to all vendors because
Amazon wants to protect its reputation for Prime. Instead, to sell via SFP,
they have established high-eligibility Seller Fulfilled Prime standards.
So, only the
best sellers are eligible. Even then, they will need to fulfill two
requirements:
· Complete the SFP trial period.
· Receive Premium Shipping
Sellers
should ship SFP-enrolled items the same day (subject to cut-off time), and it
should be noted that during the trial period, the Prime badge is not shown on
their products. The Prime logo is only highlighted on the products if a seller
joins Amazon's SFP program and successfully completes their trial term.
Recommended:
Therefore,
be sure that you meet these Amazon Seller Fulfilled Prime standards before
considering enrolling:
· 99% of shipments are completed on
time.
· Possess a 99% successful tracking
rate
· Offer customers premium shipping
services
· Keep your collection rate at 0.5% or
lower.
· Use Amazon's Buy Shipping for a
minimum of 98.5% of your orders.
· Observe Amazon's return guidelines
· Use a carrier that has been
authorized by Amazon to deliver orders.
· Allow Amazon to respond to all
customer inquiries.
As of right
now, Amazon isn't taking any new SFP applications from Americans. But when it
is, the complete registration procedure will resemble this:
1.Premium
Delivery
A vendor
must demonstrate that they can regularly provide Premium Shipping services. The
seller is unable to do this before beginning the SFP trial, though. Until a
vendor is eligible for Premium Shipping, they cannot go online.
2. Sign
up for SFP
Within
Seller Central, a seller can sign up for the SFP program. After that, items
must be added to the shipment template titled "Prime trial." When
comparing performance to the trial's requirements, only goods that were
assigned to this template will be considered.
3. A test
period
The trial
period for the SFP is 5 to 90 days long, with a minimum of 200 orders. During
this time, a vendor should keep the total performance % high.
4.
Continue to have SFP status.
Once a
seller has completed their trial period, they must adhere to the standards and
offer customers a dependable service.
The Distinction
Between SFP and Premium Shipping
The topics
of premium shipping and SFP (Seller Fulfilled Prime) are frequently discussed
yet, for some reason, are also misunderstood. Recognize that premium Shipping
is a totally independent program that enables sellers to essentially provide
clients speedy shipping choices using their own shipment. A vendor must
complete these in their orders over the course of 30 days in order to qualify:
· 99% accurate tracking rate
· 97% of deliveries are made on time
· 0.5% or less seller cancelation rate
After
becoming eligible, the merchant can start charging clients more for Premium
Shipping alternatives. These delivery options are available in the US and
include:
· Day One Delivery
· 24-hour shipping
A vendor
must continue to meet the aforementioned standards in order to be eligible. SFP and
Premium
Shipping shouldn't truly be compared to other forms of shipping. In contrast to
Seller Fulfilled Prime, which leads the route to getting a Prime badge for
products without FBA, Premium Shipping enables you to offer faster shipping
choices.
How Come
Amazon Launched SFP?
We are all
aware of Amazon's obsession with its customers. Customers who are loyal to them
by being Prime subscribers are those with whom they have a long-lasting
relationship. As a result, Amazon launched SFP primarily to:
·
Assist clients in receiving their goods swiftly and
dependable
·
Provide as many product options as you can
·
Not impose a shipping surcharge on customers
Key
distinctions between SFP and FBA
Shipping is
one of the key distinctions between FBA and SFP. Although both can assist you
in obtaining the Buy Box and the Amazon Prime badge, a seller who is a part of
the SFP program is responsible for order fulfillment and delivery costs. However, one of the main disadvantages of SFP
is that a seller must cover the expense of shipping in order for buyers to
receive their products promptly and at no additional cost.
On the other
hand, Amazon handles all aspects of shipping for an FBA seller. But there is a
cost involved. FBA fees could end up being almost as expensive as sending items
yourself.
FBA could be
a tad pricey for bulky, huge, slow-selling, or odd-sized products. However, it
might be expensive to invest in and maintain your personnel, warehouse,
systems, and software.
How to
proceed if your Seller Fulfilled Prime account has been suspended.
Your SFP may
occasionally be suspended, and the Amazon team will notify you of this via your
registered email address.
Ever wonder
what caused it to become suspended?
These
could be the reasons, among others:
· A decline in your rate of on-time
shipments. The SFP will be turned off and your Prime Badge will be disabled if
it drops below 99%.
· Your valid tracking rate declining.
even if a little less goes. Maintain a minimum of 94%, then.
· Increased cancellation rate. If there
are further cancellations, this is also cause for concern.
To ensure
that neither your Premium Badge nor your SFP are suspended, keep track of these
numbers.
The most
recent premium figures include of:
· The timely delivery rate for orders
with Premium Shipping is 97.0% or higher.
· Orders with Premium Shipping should
have a 100% valid tracking rate.
· Order cancelation rates for Premium
Shipping should be 0.5% or below.
The most
recent SFP figures include:
· It is important to keep the timely
shipment rate at 99%.
· The expected timely delivery rate is
97.0%.
· A 98% buy-shipping rate is ideal.
· The appropriate cancellation rate is
0.5%.
· SFP Benefits and Drawbacks
Every coin
has two sides, so it is not surprising that SFP has its own set of advantages
and disadvantages. Let's examine them in greater detail.
Benefits
of using SFP
When
compared to FBA (a program where Amazon handles inventory storage &
shipment), SFP has several advantages despite the fact that a seller has a lot
of duties and labor to do. These comprise:
1. With the dependable prime emblem, sales and earnings rise.
The Amazon
Prime branding becomes active and prominent on a seller's product listings as
soon as the seller's trial period is over or completed. By displaying the
products to both regular Amazon customers and Amazon Prime members, this now
increases product visibility. The badge is another indication that a seller is
trustworthy and credible and that they are selling high-quality goods.
2. More affordable compared to FBA
SFP can
eliminate FBA shipping, storage, and handling costs because they are typically
thought to be superfluous. Prior to this, companies had to forfeit a
significant portion of their revenues because the only way to achieve
"Prime status" was to complete orders through FBA.
Additionally,
FBA sellers were required to split their shipments among 3 fulfillment
facilities and continually pay an additional cost for "Inventory Placement
Service." SFP vendors can use Amazon Prime without paying additional costs
and quickly distribute the goods from their own inventory.
Cons of
utilizing SFP
When it
comes to "scalability," employing SFP has several disadvantages
there are a
few factors that you as a third-party seller cannot ignore.
1. The SFP eligibility and upkeep requirements are stringent, for one.
The SFP is
very exclusive. To guarantee complete customer satisfaction, Amazon has strict
standards in place. They are intriguing, but they are also promising for a
seller to follow because they have grown steadily more difficult over time.
Now, Amazon will revoke your Prime Badge in less than a minute if you
continually fail to satisfy its SFP standards.
2.
Exorbitant delivery fees
A superb
service is undoubtedly expensive to access. Amazon's SFP is no different, so.
The cost of customer perks like next-day delivery is higher for the seller. Additionally,
the price of SFP shipping may increase. Therefore, a seller should control such
costs by setting limits and organizing their shipping routes for Prime
deliveries.
3. At some point, fulfilling a greater volume of orders can become challenging.
You will
undoubtedly have total control over your fulfillment process using SFP. Of
course, this is a fantastic advantage and should be treasured. However, when
operations scale and you have to deal with a bigger order volume, issues can
arise, particularly if you don't have a well-designed procedure in place.
You must
make investments in your fulfillment infrastructure if you want to efficiently
complete the orders and keep your SFP eligibility. Additionally, you will need
to use the ideal strategies for everything, from determining an order's cut-off
time for 2-day shipping to the product packaging.
Conclusion
Without a
doubt, Amazon has transformed how the e-commerce sector operates. When it comes
to exceeding clients' expectations, they really go above and beyond. Meeting
consumer expectations can help retailers like you distinguish out, which is why
services like FBA and SFP exist to make things simpler.
Since each
have advantages and disadvantages of their own, picking between FBA and SFP can
be a little challenging. However, choosing the best solution for your company
ultimately depends on the goods you offer and how you want to run your
operations.
The Secrets to Selling on Amazon Prime in 2023 are Here
By Following our Best Advice, You can Win the Amazon Buy Box in 2023.
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