Is Seller Fulfilled Prime (SFP) the Right Choice for Your Brand?
Seller Fulfilled Prime (SFP) is a powerful tool for Amazon sellers who want to offer the Prime badge while maintaining control over their own fulfillment. With SFP, you can combine the trust and visibility of Amazon Prime with the flexibility of in-house or third-party logistics. However, achieving and maintaining SFP eligibility requires meeting strict requirements, and it’s not the right fit for every brand. Let’s explore what SFP involves, its challenges and benefits, and how the SupplySync Team can guide you to success.
What is Seller Fulfilled Prime (SFP)?
SFP allows sellers to offer Prime delivery directly from their own warehouse or through a third-party logistics (3PL) provider. Unlike Fulfilled by Amazon (FBA), SFP gives you complete control over your inventory and shipping processes while still enjoying the Prime badge’s customer trust and enhanced visibility.
However, gaining and keeping SFP status is no small feat. Amazon requires sellers to meet stringent performance metrics, including fast delivery times, high tracking accuracy, and low cancellation rates. Sellers must consistently meet these benchmarks to remain eligible, making operational efficiency critical.
However, gaining and keeping SFP status is no small feat. Amazon requires sellers to meet stringent performance metrics, including fast delivery times, high tracking accuracy, and low cancellation rates. Sellers must consistently meet these benchmarks to remain eligible, making operational efficiency critical.
Performance Requirements for SFP
To qualify for and maintain SFP status, you’ll need to meet Amazon’s strict performance metrics:
- On-Time Delivery Rate: At least 93.5% of orders must arrive on time.
- Valid Tracking Rate: A tracking rate of 99% or higher is mandatory.
- Cancellation Rate: Orders canceled by the seller must stay below 0.5%.
- Delivery Speed:
- Standard-Size Orders: At least 30% must offer 1-day delivery, and 70% must offer 2-day delivery.
- Oversized Products: At least 10% must offer 1-day delivery, and 45% must offer 2-day delivery.
Challenges of SFP
While SFP can elevate your business, achieving its benefits comes with several challenges:
- Weekend Operations: To meet delivery metrics, your warehouse or logistics partner must operate on at least one weekend day. Orders placed before the cutoff time need to ship the same day.
- Shipping Costs: Offering nationwide 1-2 day delivery can be expensive, especially for smaller businesses without economies of scale in direct-to-consumer (D2C) shipping.
- Strict Compliance: Failing to meet Amazon’s metrics can lead to suspension of your SFP status, requiring a 30-day waiting period for reinstatement.
- Fulfillment Setup:
You’ll need a robust fulfillment process already in place, including meeting criteria such as:
- Fulfilling 100 packages over the past 90 days.
- Maintaining a cancellation rate under 2.5%, valid tracking above 95%, and a late shipment rate below 4%.
How SupplySync Can Help
Implementing and maintaining SFP can be daunting, but the SupplySync Team is here to guide you through every step. Whether you need full-service support or strategic guidance, we ensure your business is positioned for SFP success. Here’s how we help:
- Operational Assessment: We conduct a detailed review of your current fulfillment capabilities, delivery network, and shipping timelines to assess whether SFP is a viable option for your business.
- Custom Strategy Development: Based on your unique needs, we design a tailored strategy to help you meet Amazon’s requirements. This includes creating custom shipping templates, optimizing your order processing workflows, and aligning delivery speed promises with your logistics setup.
- Cost Optimization: Nationwide 1-2 day delivery can be costly. Our team analyzes your shipping expenses, identifies cost-saving opportunities, and negotiates with carriers to secure competitive rates.
- Process Implementation: o For sellers who prefer hands-on support, we help implement the necessary processes, train your team, and ensure compliance with Amazon’s metrics.
- Ongoing Monitoring & Support: Staying compliant with SFP requires continuous monitoring. We provide ongoing support to track your performance metrics, flag potential issues, and adapt strategies as needed to maintain eligibility.
Is SFP Right for Your Brand?
SFP is best suited for brands with robust logistics capabilities and scalable shipping operations. If your business already excels in order processing and delivery, SFP can unlock new growth opportunities by combining the flexibility of in-house fulfillment with the visibility of Amazon Prime. However, if meeting Amazon’s metrics feels out of reach, other options like FBA or hybrid models may be more practical.
The key is to align your fulfillment strategy with your business goals. A thoughtful approach ensures you reap the rewards of SFP without overburdening your operations.
The key is to align your fulfillment strategy with your business goals. A thoughtful approach ensures you reap the rewards of SFP without overburdening your operations.
Final Thoughts
Seller Fulfilled Prime offers significant advantages for Amazon sellers who are prepared to meet its challenges. From increased visibility to better customer trust, the Prime badge can be a game-changer for your business. However, success with SFP requires careful planning, operational efficiency, and ongoing compliance.
Curious if SFP is right for your brand?
Schedule a discovery call or request a free audit to explore how SupplySync can help you implement this powerful strategy and unlock your full potential.