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How Does Amazon Seller Fulfilled Prime Work? What Is It?

Any retailer would have understood the value of selling on Amazon by now, and more specifically, the value of selling on Amazon Prime. You...

Amazon Seller Fulfilled Prime Work

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




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.


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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.



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.


 Read More:

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