Experiencing success in online sales is no easy task. But if you want to stay ahead of the competition and maximize your earnings, consider switching to Seller Fulfilled Prime (SFP).
Joining this powerful program will help you sell your products with the coveted Amazon Prime badge from your own warehouse. Unlike when selling your product through the Fulfillment by Merchant (FBM) method, SFP will give you access to over 200 million Prime members, so you can sell more and ship faster.
However, the SFP order fulfillment method isn’t all sunshine and rainbows. Several challenges come with this fulfillment model. This article delves deeper into the SFP fulfillment method, its benefits, challenges, and how the right software can make it much easier to manage.
What is seller fulfilled prime?
Seller Fulfilled Prime (SFP) is an Amazon fulfillment program that allows qualified sellers to display the Prime badge on their products and deliver directly to customers from their own warehouses. This program enables sellers to provide a fast and reliable delivery service without shipping their products to Amazon’s warehouses first. With SFP, you can keep all your stock in your warehouse or the warehouse of your choice via a third-party provider.
To qualify for SFP, you must meet certain criteria, such as providing free two-day shipping and maintaining a low order cancellation rate. Amazon also requires you to meet a threshold of 50 orders within 90 days. Once approved, you can take advantage of the increased visibility and sales that come with displaying the Prime badge on your products.
The benefits of seller fulfilled prime
With all the requirements to qualify for SFP, is it worth it? Absolutely. Here are some of the key benefits:
Increased visibility and sales
Amazon boasts over 200 million Prime members who pay a flat annual fee to enjoy benefits like free delivery of their orders within two days. These customers are interested in fast, free, and reliable delivery.
So, displaying the Prime badge on your product listings drives more traffic to your products. You’ll gain access to this massive marketplace of shoppers and increase your sales potential.
Better control over your inventory
SFP gives you better inventory control than other fulfillment methods, like Fulfillment by Amazon (FBA). With SFP, you can store your stock in your warehouse or the warehouse of a third-party provider and manage it according to your preferences. You can decide when and how much stock to order and when to ship orders out.
You also have the flexibility to adjust your inventory levels based on demand and customer feedback. This allows you to keep up with customer needs while minimizing the costs associated with excess inventory.
Saving you money
With SFP, you can fulfill orders directly from your warehouses or third-party providers, rather than shipping them to Amazon first. You can save money on shipping costs and avoid the need for costly storage fees that Amazon usually charges for the inventory stored in their warehouses.
This fee can be high during busy shopping seasons or if your items stay in the warehouse for a long time. If you’re using the FBA fulfillment method, Amazon will also charge you order removal fees if you need to remove stock from their fulfillment centers. SFP helps you avoid these extra costs.
Better tracking of packages
Since Amazon doesn’t take the reins for order fulfillment, you have more control over tracking packages. You can see what stage of fulfillment a package is in and determine if it will be delivered on time. This allows you to quickly address customer service issues related to order fulfillment and ensure that your customers are satisfied with their purchases.
Challenges of seller fulfilled prime
Despite its benefits, SFP is not without its share of logistical challenges. The most significant challenge of SFP is meeting Amazon’s strict requirements for timeliness and order cancellation rates. To maintain your Prime status, you must ensure that you ship orders within two days and maintain a cancellation rate of less than 0.5%.
So, you’ll need to select a reliable carrier that can handle the quick turnaround time and provide real-time tracking. You’ll also have to manage carrier invoices and track shipping costs to stay profitable.
The other key challenge is managing inventory levels in your warehouse or through a third-party provider. You must ensure you have enough stock available to fulfill orders quickly and accurately while avoiding overstocking or running out of items too often.
Inventory management can be challenging if you have multiple warehouses and 3PLs. In this case, you need a system that gives you a seamless view of your inventory across all locations so that you can make the best decisions for your business.
Finding the right software to support SFP
Having the right software in place can help you overcome the logistical challenges of SFP. For instance, a solution like SKULabs will help you meet the two days delivery requirement and manage inventory in multiple locations. This multi-channel inventory and order management system (OMS) will help you manage your shipping and inventory under one cloud-based system.
SKULabs will help you meet the shipping requirements by automatically prioritizing the seller-fulfilled prime orders when shipping in batches. The system will also sort orders by the guaranteed shipping date to ensure you ship everything on time. It will also select the cheapest rates to help you keep shipping costs low.
On top of that, SKULabs will automatically link your FBM and SFP listings to give you a single view of your inventory across multiple locations. The stock sync feature will keep your listings up to date on Amazon, even during busy seasons. As such, you can avoid overselling and ensure you have enough stock to fulfill orders.
Overcome the challenges of seller fulfilled prime with SKULabs
Seller Fulfilled Prime is a great way to save money on shipping costs and avoid costly storage fees. However, it comes with its share of logistical challenges that can be difficult to manage. Fortunately, the right software can help you overcome these challenges and keep your seller-fulfilled Prime status intact.
SKULabs is one such solution that can help you ship orders on time, reduce shipping costs, and monitor your inventory levels through a single interface. With SKULabs, you can easily keep up with Amazon’s selling requirements and take advantage of Prime status without the hassle. Get started with SKULabs and see how it can supercharge your ecommerce inventory and order management processes.
