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What is Amazon Seller Fulfilled Prime?

Home » FAQ » What is Amazon Seller Fulfilled Prime?

Seller Fulfilled Prime (SFP) is an Amazon platform that allows sellers to display the Prime badge while fulfilling their own domestic orders from their own storage facilities. SFP allows vendors to sell directly to Prime customers without using Amazon’s fulfillment operations. 

In displaying the Prime badge, sellers commit to fulfilling their own orders and offering two-day deliveries at no additional charge for Prime customers. Amazon provides access to its transportation solutions to help sellers maintain the strict standards Prime customers expect. Seller Fulfilled Prime provides a hybrid solution for experienced Amazon sellers with luxury or expensive products that may not move as fast as Amazon wants inventory to move in its warehouses. This gives sellers more control over their inventory but requires them to store and fulfill their own orders or partner with a 3PL service provider to fulfill their orders. 

Potential SFP vendors follow these five steps to qualify for SFP status:

  1. Completing a strenuous trial period
  2. Store inventory in seller’s warehouse or seller’s fulfillment partner’s distribution centers
  3. Sellers process their own orders and buy shipping labels from approved carriers
  4. Pick, pack, and ship orders on the same day
  5. Seller Fulfilled Prime vendors collect and deliver orders in two-days time to customers

Qualifying for SFP

Amazon’s SFP program comes with some rigid requirements, such as:

  • Sellers must offer premium shipping options
  • 99% of orders must be delivered on time
  • Order cancellation rate must be less than 0.5%
  • Must use Amazon Buy Shipping Services for at least 99% of orders
  • Must provide nationwide delivery for all standard-size products in two days
  • Use shipping methods that support weekend delivery and pick up on Saturday or Sunday  
  • Must adhere to 1-day and 2-day delivery promises
  • Deliver orders using Amazon Seller Fulfilled Prime carriers
  • Agree to Amazon returns policy
  • Allow Amazon to provide customer service 
  • Process own returns

Things to Consider

The SFP trial period can take as little as five days and up to as many as 90 days. It is based on how long it takes sellers to fulfill 200 eligible Prime orders. Sellers aren’t allowed to display the Prime badge during the trial period. If after 90 days, the seller has not met the quota for Prime orders, the trial period automatically resets and the seller can start the trial over. Once the trial period is over, Amazon reserves the right to remove the Prime badge if performance levels fail to meet Amazon’s stringent metrics for SFP, even once. Amazon’s Seller Fulfilled Prime platform makes it easier for sellers to control their inventory and more effectively compete for the Buy Box by displaying the Prime badge. However, SFP vendors are required to meet the delivery standards and maintain other stringent metrics that Amazon demands to maintain their Prime status. 

SFP vs. Fulfillment by Merchant (FBM)

As is the case with SFP, Amazon’s Fulfillment by Merchant (FBM) leaves inventory control in the hands of the seller; this includes warehousing the inventory as well as picking, packing, and shipping the orders. With FBM, however, sellers can choose to partner with a 3PL and pass the responsibility of warehousing, picking, packing, shipping, returns, and customer service on to the 3PL. 

In contrast with the SFP agreement, FBM sellers don’t have to adhere to a strict timeline for shipping out orders but they are not able to display the Prime badge. For some sellers, not being able to display the Prime badge takes FBM out of the running. It’s important to consider that FBM is fee-based (i.e., referral fees, monthly subscription fees, and a fee for each item sold) and those fees can impact the bottom line.

If your business is interested in Amazon’s SFP program but can’t meet the demands set forth by Amazon on your own, consider partnering with a reliable and experienced 3PL such as Phase V Fulfillment. We will keep your business in good standing with Amazon and with your customers. Contact us today for a free quote!