February 23, 2024

Navigating Amazon Seller Fulfilled Prime: Things you need to know 2024

Are you looking to differentiate your offerings and enhance sales? Enter Amazon Seller Fulfilled Prime(SFP), a program allowing sellers to display the coveted Prime badge on their listings. Here is what you need to know to navigate SFP successfully.

Understanding Seller Fulfilled Prime

Seller Fulfilled Prime is a program that enables sellers to offer Prime benefits while fulfilling orders from their warehouse or through a third-party logistics provider. By participating in SFP, sellers gain the Prime badge, which can increase visibility to millions of Amazon customers. However, sellers must meet Amazon’s rigorous delivery standards, such as delivery time and Amazon-approved carriers.

Eligibility requirements for Seller Fulfilled Prime across various markets

Eligibility for SFP is subject to market-specific criteria. Each market has its own set of requirements:

United Kingdom1. Have an Amazon Professional seller account.
2. Have a domestic warehouse from which to fulfill your orders.
3. Ship over 99% of your orders on time.
4. Have an order cancellation rate of less than 0.5%.
5. Use Amazon Buy Shipping Services for at least 98% of orders.
6. Deliver orders with our supported Seller Fulfilled Prime carriers.
7. Seller must agree to the Amazon Returns Policy.
8. Allow for all customer service inquiries to be dealt with by Amazon.
Germany1. Meet delivery promise targets based on product tier and storage location.
2. Meet a punctuality rate of at least 90%.
3. Provide a valid tracking ID for at least 99% of shipments.
4. Meet an order cancellation rate of less than or equal to 0.5%.
5. Offer free shipping and free returns to Prime members (some exceptions apply).
6. Make your Prime-registered products available nationwide.
United States1. Free one-day and two-day delivery for Prime customers.
2. Free nationwide standard shipping for all customers.
3. Meet minimum thresholds for one-day and two-day delivery speeds as viewed by Prime customer detail page views.
4. An on-time delivery rate of at least 93.5%.
5. A valid tracking rate of at least 99%.
6. A seller-initiated cancellation rate of less than 0.5%.
7. Ship and deliver Prime orders on weekends (Saturday, Sunday, or both).
8. Offer Free Returns on items weighing under 50 lb
9. Amazon manages all post-order customer service inquiries.
Trial period: ship 50 eligible Prime trial orders with 100% on-time delivery or Ship 100 eligible Prime trial orders with 99% on-time delivery
The trial period lasts between 5 and 90 days depending on when you satisfy the performance requirements.

Top things to consider when you enter Seller Fulfilled Prime

Choose the right products

When choosing products for SFP, focus on two main aspects: product characteristics and leading product categories.

Criteria of ideal product to sell for Seller Fulfilled Prime

High fulfillment and logistics cost

The cost of SFP consists of the transportation fee of approved carriers and the marketplace referral fees. This can lead to huge expenses, especially when handling large orders. The shipping cost for some items may even exceed the products’ cost.

A well-designed fulfillment process

A seamless fulfillment process requires high investment in fulfillment structure; once you scale up your business and fulfill large order volume, here are essentials to develop a well-designed fulfillment process.

  • Optimized inventory management: Segregate your inventory based on sales velocity and seasonal demand, and keep your high-demand products readily available for quick dispatch.
  • Streamlined fulfillment process: Invest in robust Warehouse Management Software(WMS) that integrates seamlessly with Amazon’s systems. The right WMS enhances your fulfillment efficiency and minimizes errors.
  • Advanced technology for picking and packing: Adopt Advanced Mobile Robotics (AMR) in your warehouse to improve the speed and accuracy of your picking and packing processes. AMRs reduce manual errors and speed up the fulfillment cycle from the initial order to the final dispatch.
CIRRO Fulfillment_AMR-powered fulfillment

In-house warehousing vs. outsourcing

Choosing between in-house warehousing and outsourcing for Amazon’s SFP depends on your order volume fulfillment capability and the size of your business. In-house warehousing gives you strong control over your inventory management, allowing for immediate adjustments in operations based on changing business needs. However, this approach requires a huge investment in infrastructure, also bringing challenges in management complexities and scalability.

Final thoughts

With rising shipping costs being a major concern for 38% of U.S. Amazon sellers, tiny and medium-sized ones, partnering with a third-party logistics (3PL) provider could be a smart move. You don’t have to spend time and energy to build up the fulfillment chain.

As an experienced 3PL provider, like CIRRO Fulfillment, we integrate with leading e-commerce platforms to ensure a smooth and efficient order flow. You can benefit from reduced shipping costs through our over 80 fulfillment centers network and competitive bulk carrier rates. Our advanced AMR-equipped fulfillment centers in key locations across the UK, Germany, the U.S. East, and the U.S. West elevate operational efficiency and satisfy evolving customer demands.