Amazon - The shrinkage gap in global e-commerce is currently standing number one in the work of building a logistics model. Amazon sellers are certainly no strangers to formal orders likeFulfillment by Amazon (FBA)orFulfillment by merchant (FBM). In addition to these two well-known configurations, Amazon also offers a Seller Fulfilled Prime (SFP) model - a complete replacement for FBA that still ensures cost and sales efficiency. What makes SFP different from the usual two-party model? Which businesses is SFP suitable for? Let's discover together right here!
Fulfillment by Amazon (FBA) gives sellers special rights to Amazon Prime, and Buy Box, but in return, sellers have to spend a lot of money on logistics services and lose control in the process of managing and shipping goods. Fulfillment by merchant (FBM) allows merchants to "connect the chain" when managing from A to Z the units that manage the packaging, shipping, and handling of goods. But the downside is the loss of special permissions on fast transfer and Prime group objects (accounting for ~200 million users in the global arena).
Seller Fulfilled Prime (SFP) is a hybrid fulfillment model between Amazon Formal Fulfillment (FBA) and Fulfillment by merchant (FBM). With SFP, merchants can manage their logistics, package products, and get permission to ship their products to customers directly from their warehouse or service logistics (3PL).
Seller Fulfilled Prime (SFP) helps sellers display the Amazon Prime badge and access Prime members with two-day and free standard shipping. Similar to FBA, when using the Seller Fulfilled Prime (SFP) service, sellers have the opportunity to receive an Amazon Buy Box - which helps products show up when customers search, increases conversion rates and drives sales.
To become an SFP seller, businesses must register and complete a trial period. To be eligible, sellers must have their inventory and use a professional seller account ($39.9 fee).
In addition, the seller needs to meet the requirements that Amazon offers during the trial period. At the end of this period, the Prime badge will show up on product listings, increasing product exposure to customers who shop on Amazon.
The process to become a Fulfilled Prime (SFP) seller includes the following steps:
Sellers first sign up with Amazon by going to the Fulfilled Prime Seller page(https://sell.amazon.com/programs/seller-fulfilled-prime) and signing up for a trial. However, Amazon doesn't always accept new users by the time you visit. You can join the waiting list.
Merchants need to enable Top Shipping in the Master Shipping form. This item may be found at Configure Shipping Settings in the SFP Seller Center. Here, merchants get to choose regions where Prime can ship.
After enabling Prime Shipping, the merchant assigns an SKU specifically to the Prime Shipping sample. It should be noted that Prime trial orders are the only SKU units that follow the Prime Shipping form and the regions that you specify for Prime shipping. This order will contribute to the seller's performance evaluation during the main shipping test usage period.
In the Item Seller Center, define test orders for Prime Shipping with the Prime badge and the “is prime” tag that shows up in the “Order Reports” section. Then follow the steps below:
During the Amazon Seller Fulfilled Prime trial period, merchants must make sure to answer the following Prime performance requirements:
To be eligible for an SFP, you must also respond to the requirements for the Premium Transportation Program. This method of transferring fast in two days is used to select Amazon Prime. To guarantee the Premium Shipping Program, sellers must secure the numbers below within 30 days:
Merchants or the 3PL logistics units they use need to go through the SFP trial period and meet the following requirements with a minimum of 50 orders during the SFP test run.
To maintain the SFP, the seller must follow the policies below:
After completing the trial period, the seller will automatically be registered as an SFP seller. However, to maintain the SFP, the seller must continue to meet these requirements for 7 alternate days
Sellers who fail to meet these requirements will no longer qualify for the SFP.
Seller Fulfilled Prime brings many plus points for retailers on Amazon, specifically as follows:
Sellers who sell SFPs are treated with the same benefits as FBA sellers, which means their products will show up more often to over 200 million Amazon Prime Members worldwide.
Those who are considered Amazon VIP customers spend an average of $200 per person per month and double that of non-Prime Amazon members.
When using FBA, the seller sends all of his goods to Amazon's fulfillment center, which means that the seller loses a lot of control over his products. In addition, Amazon's product storage fees often change without prior notice to sellers.
SFP allows sellers to reduce storage costs and fees to use services like FBA and still enjoy the same incentives as FBA sellers. This sales method will be very suitable for sellers who have well-managed the supply chain and control their goods and products.
FBA brings a series of benefits to sellers but also brings huge cost problems for them. When using FBA, the seller needs to pay the fulfillment fee to Amazon as well as pay the additional cost of shipping the item to Amazon's warehouse. By using SFP, sellers can eliminate inbound shipping costs for Amazon and easily take control of their fulfillment costs.
Product innovation and change are the norms in most industries, especially in the consumer electronics sector. Usually, sellers need to adjust information related to packaging, product characteristics, etc. However, once the product has been submitted to the Amazon Fulfillment Center, these small details cannot be changed.
Or more simply, when the seller wants to add vouchers and cards for special occasions to promote purchases, FBA service will not meet this need.
One of the big hurdles with using FBA is customer returns and refunds for human errors at Amazon Fulfillment Center. Whether it's a lost, damaged, or Amazon-induced delay that results in a return or refund, the seller must proactively submit a claim to Amazon for a refund.
It's become all too common for a seller to work with Amazon Customer Service to get a refund or transact with a buyer. For better control over returns and refunds without going through Amazon, Sellers should choose SFP.
Before signing up to become a Seller Fulfilled Prime, you must complete a trial period to demonstrate that you are fully capable of meeting the requirements set forth by Amazon and satisfying customer satisfaction.
Prime badges won't show up on items you sign up for in Seller Fulfilled Prime during the trial period, but sellers still need to process them quickly. Upon completion of the trial period, the seller will automatically be registered as an SFP, and ASINs who register to sell SFP will display a Prime badge for customers to know.
Sellers using SFP will not need to incur any additional costs other than Amazon's standard referral fee and carrier's shipping fees.
It can be seen that SFP is an effective form of order fulfillment, both allowing sellers to receive similar incentives as FBA at a low cost while helping them actively manage inventory, shipping as well as refunds. money and goods for customers,...
If you don't want to spend too much money on FBA, you can try using SFP in the process of selling on Amazon.
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