Amazon is offering a potentially beneficial service to it’s sellers. With Seller Fulfilled Prime (SFP), merchants have the opportunity to now fulfill and ship their own orders. This saves on many fees for sellers and helps Amazon by eliminating the need for more fulfillment centers. Only top tier sellers qualify for this program, ensuring consumers can have a worry free buying experience. So how is this service compared to their other options?
Eliminate FBA Fees
Switching to SFP does away with so many fees. No more fees with FBA means a bigger potential profit for the seller. Because SFP provides the option to store your own products, you no longer have to pay those pesky storage fees. This also means that if you are selling through Amazon on another channel, such as your personal website, you won’t be subject to increased fees. Perhaps you have a few items you wanted to sell with FBA, but they were deemed ineligible. It is now possible to sell those items as well.
Another huge perk is having access to Amazon Prime members without the need to have bulk inventory at an Amazon warehouse. Now a seller can have their products in their own possession and still qualify for Prime. That will snag you a whole other lot of consumers. Many people are loyal to Prime eligible products, only buying those items. Prime members, on average, spend about $1,400 per year.
To be eligible for this service, there are a few criteria that sellers must meet. There is a trial period which lasts from 5 to 90 days. During this time, you must have an on time shipping rate of 99%. You also need to have a cancellation rate lower than 1%. If you do not reach 200 sales by the end of your trial, your time will reset and give you another chance.
What are the Downfalls?
There are several stipulations that some sellers may not like. It is the sellers responsibility to supply the shipping labels and it is required to adhere to Amazon’s return policy. With all inquiries being required to be directed to an Amazon representative rather than the seller, it does take away from the merchant/consumer relationship. Prime shipping must always be offered as well. Amazon expects their sellers to have a high level of integrity and represent their company well. Fast, reliable shipping is a sure fire way to keep your customers happy. Failure to produce proper results will disqualify you from the program.