Amazon Seller-Fulfilled Prime 2023 Guide - eSeller World

In the ever-evolving world of e-commerce, Amazon continues to dominate the market with its innovative solutions for sellers. One such solution is the Seller-Fulfilled Prime (SFP) program, which allows sellers to offer Prime two-day shipping on their products without relying on Amazon’s fulfillment centers.

In a recent update on June 13, 2023, Amazon made an announcement on Seller Central stating their plans to reopen new seller enrollment for the Seller-Fulfilled Prime (SFP) program in the coming months. To discover further details about Seller-Fulfilled Prime and the process of enrolling your business in 2023, continue reading.

What is Amazon Seller-Fulfilled Prime?

Amazon Seller-Fulfilled Prime (SFP) is a program offered by Amazon that allows third-party sellers to fulfill and ship their own products while still offering the benefits of the Prime membership to their customers. With SFP, sellers are responsible for storing, packaging, and shipping their inventory, ensuring that it meets Amazon’s high standards for fast and reliable delivery. By participating in Seller-Fulfilled Prime, sellers gain access to the Prime badge, which signifies to customers that the product is eligible for Prime benefits such as fast and free shipping. This program gives sellers greater control over their fulfillment process while tapping into the vast customer base and trust associated with Prime membership.

How Does Seller Fulfilled Prime Work?

Seller-Fulfilled Prime (SFP) allows sellers to fulfill orders from their own or a third-party logistics provider’s warehouse. It is essential for SFP orders to be delivered using Amazon-supported shipping carriers to ensure a high level of customer service. Participating sellers take responsibility for shipping orders directly to customers within the promised Prime shipping timeframe, whether it’s One-Day or Two-Day delivery.

To be eligible for the SFP program, sellers must meet specific criteria, including maintaining high seller performance metrics and demonstrating a track record of timely order fulfillment. Before enrolling in the program, sellers undergo a trial period, typically lasting 5 to 90 days and involving a minimum of 200 orders, to demonstrate their ability to meet Amazon’s requirements. During this trial period, the Prime badge does not appear on the seller’s listings. Successful completion of the trial period results in automatic enrollment in the program.

Sellers participating in SFP must ensure they have sufficient inventory to fulfill Prime orders and maintain the promised shipping timeframe. They can use their own inventory management systems or integrate with Amazon’s seller tools to efficiently manage their inventory.

Sellers are also responsible for handling customer inquiries, returns, and refunds. It is important for them to adhere to Amazon’s customer service standards to provide a positive buying experience for customers.

Reopening of SEP in 2023

Seller-Fulfilled Prime (SFP) enrollment was paused in early 2021. However, Amazon announced on June 13, 2023, that it will be reopening enrollment for the program later this year. The exact date of reopening has not yet been announced, but sellers can join the waitlist to be notified when it becomes available. This is the announcement Amazon made in Seller Central:

“We are excited to announce that we will reopen new seller enrollment for the Seller Fulfilled Prime (SFP) program later this year.

We first launched SFP in 2015. Our goal was to allow sellers to independently handle the fulfillment of their products while also making them available to Prime customers with the same fast, free delivery they have come to expect.

As the program grew, we, unfortunately, realized that SFP was not providing the same high-quality experience that customers expect from Prime. As a result, we paused new seller enrollment while we worked to make sure we had more support for sellers and clear standards in place for the SFP program to ensure it provides customers a great Prime experience. We appreciate the sellers that have helped us work through this, and we are excited to be at the point where we will soon reopen enrollment.

We will update you in the coming months with enrollment details and updated requirements to ensure that it meets Prime customers’ high expectations. We look forward to the improved customer experience that these changes will bring. For those of you that have been interested in joining SFP and waiting, we thank you for your patience. To learn more about the program, go to Seller Fulfilled Prime.”

What Are The Requirements for Seller-Fulfilled Prime?

To participate in the Amazon Seller-Fulfilled Prime (SFP) program, sellers must meet specific eligibility requirements set by Amazon. While the requirements may vary slightly over time, here are the general criteria for Seller-Fulfilled Prime.

Sellers must have a Professional Selling Plan on Amazon, which involves paying a monthly subscription fee.
Sellers must maintain a low order defect rate (ODR). The ODR is calculated based on the percentage of orders with defects, such as negative feedback, A-to-z Guarantee claims, and chargebacks. Amazon expects sellers to maintain an ODR below a certain threshold, typically 1%.
Sellers must consistently meet Amazon’s on-time shipment rate requirement. This measures the percentage of orders that are shipped and confirmed by the expected ship date. Amazon typically requires a high on-time shipment rate of around 97%.
For sellers to qualify for Seller-Fulfilled Prime, they must be capable of providing nationwide delivery coverage for all standard-size products. This means that sellers need to ensure their shipping operations are equipped to deliver products to customers across the entire country where Amazon Prime is available.
Another important requirement for Seller-Fulfilled Prime is the ability to use ship methods that support weekend delivery and pick-up, specifically on Saturdays or Sundays. This feature allows sellers to cater to customers who may prefer receiving their orders over the weekend when they are more likely to be at home.
Sellers must commit to shipping orders within two business days of receiving them. This ensures that customers receive their products within the promised Prime two-day shipping timeframe.

How to Enroll in SEP

To become eligible for Amazon Seller-Fulfilled Prime, follow these steps:

Step 1: Sign up for a professional seller account and activate Premium Shipping. This is the first requirement to participate in the program.

Step 2: Fulfill 30 premium orders in a month. Before applying for Seller-Fulfilled Prime, you need to complete at least 30 Premium Shipping orders within a 30-day period. This demonstrates your ability to handle a significant volume of orders.

Step 3: Enroll in the Seller Fulfilled Prime trial. Complete the application for the Seller-Fulfilled Prime program and agree to offer overnight or two-day shipping on Prime items. You must also agree to adhere to Amazon’s return policy and customer service requirements.

Step 4: Fulfill 200 Prime trial orders in 90 days. During the Seller Fulfilled Prime trial period, which lasts for 90 days, you must successfully fulfill a minimum of 200 eligible orders. Keep track of your performance stats to monitor your progress.

Step 5: Maintain good standing to continue using the program. To continue using Seller-Fulfilled Prime, it’s crucial to maintain a good standing by meeting Amazon’s performance metrics, including order defect rate, on-time shipment rate, and customer feedback. Adhering to Amazon’s policies and providing excellent customer service is essential.

By following these steps and meeting the requirements, you can become eligible for and continue using the Amazon Seller-Fulfilled Prime program.

How to Choose the Right SFP Fulfillment for Your Business?

When selecting the appropriate SFP (Seller Fulfilled Prime) fulfillment option for your business, consider the following factors:

Order Volume: Assess your daily order volume and ensure you have the capacity to handle the expected demand efficiently.
Operational Capability: Evaluate your internal fulfillment capabilities, including inventory management, packaging, shipping, and customer service, to determine if you can meet the requirements of the SFP program.
Geographic Reach: Consider your target market and analyze if you can effectively reach Prime customers in the desired regions without relying solely on Amazon’s fulfillment centers.
Shipping Speed: Determine if your logistics network can consistently deliver products within the Prime two-day shipping window.
Cost Analysis: Compare the expenses associated with SFP, such as shipping fees, packaging materials, storage costs, and labor, against the benefits and potential sales boost from Prime eligibility.
Compliance and Performance: Familiarize yourself with the SFP program’s requirements and performance metrics to ensure your business can meet the standards and maintain Prime status.
Customer Experience: Prioritize delivering a positive customer experience, including reliable shipping, accurate tracking, and responsive customer support, to uphold your reputation and encourage repeat purchases.