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FBA vs SFP

Is Amazon SFP Better Than FBA?

Amazon has the list of beneficiary facilities for its sellers. ATES, SPN, AWS and what not, all are Amazon exclusive services for its sellers to make their ecommerce experience smooth. In the same series, for leveraging its sellers with convenience in shipping, it has offered prime shipping service, FBA, FBM/MFN. But Amazon plans have not ended here and to add a feather to the seller’s hat, it has come up with  Amazon Seller Fulfilled Prime (Amazon SFP) service.  

It has launched this service in the year 2015 but it is becoming more popular in these days. Most probably you also have heard of this service and if you are the older seller on Amazon, then, it would be of no surprise that you might be using this exclusive service to grow your business on Amazon. But, if all this is new for you then, keep reading to know more about this exclusive SFP feature that Amazon is offering to its sellers. 

What is Amazon SFP (ASFP)?

Concisely, Amazon SFP is the combination of Prime shipping plus MFN/FBM. It is a prime fulfilment option for the Amazon sellers in which they can showcase Prime badge on the items they fulfil from their own. But to utilize this service, Amazon complies its sellers to fulfil some basic requirements.  For becoming eligible for Amazon SFP program, the sellers must participate in Premium trial to achieve the Premium Shipping eligibility. Amazon runs 30-day trial program to test the qualification of Amazon seller central with professional selling plan.  

Eligibility For utilizing Amazon SFP- Let’s check all the conditions of Amazon

Though Amazon SFP program is beneficial for its sellers yet it is not open to all the sellers. It has a set criterion to allow its sellers to use its SFP program. 

  1. The very first requirement is that the seller must register on Amazon and have an Amazon seller central account.
  2. Next, sellers must have Professional selling plan.
  3. The sellers should utilize the prime shipping services of Amazon.
  4. They must qualify the tough trial period of prime products delivery.  
  5. On checking the performance of the prime sellers, Amazon gives the thought to those sellers for allowing Prime service by their own. 
  6. Amazon checks the seller performance on the basis of their prime shipping service that should be 92% for on-time delivery.
  7. The seller must have 94% rate of accurate tracking status through tracking ID.
  8. The cancellation rate of prime orders must be less than 1.5%.
  9. The existing FBA, MFN/FBM Amazon seller can anytime switch to Amazon SFP. 
  10. Last but not the least, the seller must comply the Amazon policies and guidelines of selling.

When the sellers fulfil the above criteria and prove themselves as a capable prime seller in the 30 days trial period, they enter into the Amazon exclusive seller Prime Shipping program to reap further benefits.   

How to enrol for Seller Fulfilled Prime?

  1. Through the Amazon seller central account, go to seller Fulfilled Prime main page on Amazon and sign up for Seller shipping Prime trial.
  2. Next click on configure shipping settings and enable the prime shipping for the items in your listings.
  3. Assign selected SKUs to enrol the items in Seller Fulfilled Prime. 
  4. Manage orders for the prime shipping items and offer the best service to achieve the higher efficiency and accuracy with  the higher rate of delivery. 

Benefits of Amazon Seller Fulfilled Prime over FBA

  1. Once you get the Amazon SFP, you can ship the prime products with a prime label under your name.
  2. You don’t need FBA for prime shipping. 
  3. Get rid off FBA shipping and handling fees on Amazon. 
  4. You can leverage your customers with prime shipping services and on the other hand, can connect with the millions of prime members to accelerate sales.
  5. No inventory fees for FBA. Amazon charges the sellers to pay for the items they are keeping in Amazon warehouses for FBA. when you will ship your own, you will be saved from such expenses.
  6. When you ship your products your own, there are lesser chances for wrong shipments and therefore lesser chances of returns and refunds on Amazon. Most of the time FBA sellers complaint about improper reimbursement from Amazon for the returns.  Know the Amazon returns and refunds policies.
  7. Amazon charges more for heavy and bulky items. You can make more money on shipping heavy and bulky items yourself and no need to pay Amazon expensively.
  8. Using SFP for heavy and expensive orders can save the items from scratches and cuts as in Amazon warehouse there can be a chance of such damages due to the bulk of inventories. 
  9. Another perk for selling through Amazon SFP is you can also sell those products also that Amazon does not allow for FBA. 

So,

If you are an FBA seller on Amazon and want more exposure for your store then enrolling for Amazon SFP can be a good move in your online business. Calculate your FBA expenses and compare it with your prime shipping expense. If you find yourself at a profitable place then immediately opt for Amazon SFP. Amazon says that sellers with ASFP are earning more than FBA sellers and third-party sellers experiencing the boost of 50% in profit and ROI.

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