Vendor Fulfilled Prime (SFP) is the most suitable choice for manufacturers who wish to handle each side of their Amazon enterprise.
As a result of Amazon provides success help, many sellers begin their companies by promoting on the central ecommerce platform. However what about established sellers with their very own success and gross sales technique, particularly ones who additionally wish to promote on Prime?
Fortuitously, Amazon has an answer. It’s known as Vendor Fulfilled Prime (SFP), a novel various to Amazon FBA. With SFP, firms can use their logistics, provide chain, and even buyer help, whereas nonetheless getting the perks that Amazon provides its sellers.
However what are the necessities for seller-fulfilled Prime? How can companies scale their success for Prime and different gross sales channels? Let’s discover out!
What Is Vendor Fulfilled Prime?
Amazon Vendor Fulfilled Prime permits sellers to retailer and ship objects from their very own warehouse whereas nonetheless making the most of Amazon Prime privileges, resembling entry to the 180 million subscribers.
Ecommerce firms could select SFP for a lot of causes, resembling in the event that they have already got a success technique or work with a 3PL agency. That is additionally the perfect answer for manufacturers with a multi-channel ecommerce technique.
How Does Amazon Vendor Fulfilled Prime Works?
Vendor Fulfilled Prime is a win-win for ecommerce firms and Amazon. SFP lessens the burden on Amazon warehouses and places sellers answerable for their provide chain whereas accessing Prime advantages.
Delivery
Fast transport is likely one of the primary explanation why Amazon clients subscribe to Prime. The truth is, Prime clients can get the quickest transport potential.
All Prime clients can get one or two-day free transport, plus free same-day transport with a $25 or extra buy on particular objects (although same-day transport solely prices $2.99). That mentioned, Amazon has strict transport necessities for sellers who use Prime.
All sellers should provide at the very least free two-day transport, and all parcels should ship out by 4 pm the day the client locations an order. Should you’ll offer same-day transport, sellers should ship out parcels by 1 pm.
All returned objects should even have free transport, and sellers should take up all transport and return prices.
Buyer Service
Amazon additionally consists of customer support in FBA. However for those who use SFP, you should provide customer support or work with a third-party firm. You’ll deal with buyer inquiries, reply questions, reply to issues, deal with returns, and monitor critiques and FAQs.
Instruments and Options
Whereas Vendor Fulfilled Prime has many requirements, this system provides these options to make it simpler to handle your Amazon SFP enterprise:
- Efficiency. A glance into totally different promoting metrics and the way your enterprise is performing.
- Delivery area automation. Arrange areas to supply one or two-day transport to patrons of their fast space.
- Supply velocity report. Determine whenever you had distinctive or too sluggish deliveries and the merchandise contributing to transport velocity.
Vendor-Fulfilled Prime vs Amazon FBA?
Most Amazon Prime sellers use Achievement by Amazon (FBA) as a result of it provides a full vary of success providers, together with storage, selecting, packing, transport, and even customer support.
FBA comes with charges that eat right into a vendor’s income, nonetheless.Many sellers scale back these charges by dealing with their success.
FBA additionally has restrictions on sure merchandise, resembling hazmat items. Should you promote merchandise on this class, Vendor Fulfilled Prime is one other choice to increase your shopper base whereas rising gross sales on Amazon.
Observe that Amazon additionally provides success by service provider (FBM), however this program doesn’t qualify for Prime.
Professionals and Cons of Vendor Fulfilled Prime
Whereas Amazon SFP provides many advantages, there are some disadvantages to organize for:
Professionals
- Attain extra clients. Prime members spend twice as a lot as non-Prime clients, so that you’ll attain Amazon’s most loyal patrons.
- Provide free deliveries. 66% of consumers count on free deliveries, so that you’ll faucet into one of many largest gross sales motivators.
- Stock management. Not all sellers profit from FBA. Sure companies, resembling seasonal sellers, enterprises coping with slow-moving objects, firms promoting outsized/heavy merchandise, and any vendor requiring particular stock preparations and dealing with, will want extra stock management.
- Storage financial savings. Sellers incur excessive storage charges on FBA, and companies can get monetary savings with in–home success or through the use of an inexpensive 3PL service.
Cons
- Excessive requirements. Amazon units a excessive bar for sellers on SFP, so companies should work diligently to supply a constant, high-quality expertise.
- Nationwide promoting challenges. Should you don’t have a number of warehouses all through the nation, providing quick and free transport to clients in numerous areas will be difficult.
- Final-minute modifications. Whereas Amazon does notify sellers if they modify any phrases of their program, it may be tougher for SFP sellers to implement these modifications than for FBA companies.
Vendor Fulfilled Prime Necessities
Amazon has common necessities for all sellers on SFP:
- Provide one or two-day deliveries.
- Ship standard-sized objects six days/week.
- Ship standard-sized objects throughout the nation.
However as you start your SFP technique, you’ll discover the transport necessities are extra intricate than they appear.
Manufacturers should provide free transport and returns. Since Amazon requires one or two-day deliveries, the merchandise should be shipped by 4 p.m. on the day the order was positioned. Identical-day deliveries bump as much as 1 p.m.
All sellers bear transport and return prices, which is probably not possible for all budgets.
For returns, you should uphold the Amazon return coverage. Should you use your individual return coverage, it should be equal to Amazon’s.
Steps to Be a part of Amazon SFP
There’s a course of that each one sellers should observe to hitch SFP. Right here’s a step-by-step information:
- Pre-qualify for SFP.
- Should you pre-qualify, be a part of the ready record.
- Add your stock and arrange order processing.
- Fulfill and ship orders.
Vendor Fulfilled Prime FAQS
Why does Amazon make modifications to the seller-fulfilled Prime program?
Buyer expectations are all the time altering, particularly for Prime subscribers. Any modifications to SFP replicate the most recent buyer expectations.
How can I get a greater supply velocity score?
Whereas providing quick deliveries provides you with a optimistic supply velocity report, issues get difficult when distance and provider efficiency are concerned. Amazon considers these elements, along with weekend deliveries and cut-off occasions.
Do I have to ship nationwide to be within the Vendor Fulfilled Prime program?
No. You need to solely provide one-day nationwide transport if you are able to do so.
That are the perfect transport providers for SFP?
Sellers can work with numerous carriers, together with USPS, FedEx and UPS. You may also companion with numerous carriers relying in your wants and price range.
Do I have to ship merchandise on the weekends?
Sure, and there are not any exceptions to this rule. SFP sellers should function and ship merchandise on the weekends, although they’ll select to meet orders on Saturday or Sunday.
I’m based mostly exterior the U.S. Can I nonetheless use SFP?
Vendor-fulfilled Prime is barely accessible within the U.S. That mentioned, you possibly can take part if your enterprise operations are within the U.S. and/or for those who retailer your merchandise in an American warehouse.
Is Vendor Fulfilled Prime Proper for You?
Amazon is the main ecommerce platform for sellers to realize gross sales and for purchasers to buy high-quality merchandise. That is very true for Amazon Prime, which boasts tens of millions of subscribers.
Whereas Amazon provides its FBA service to ease success and transport, Vendor Fulfilled Prime is the higher answer for firms that choose to be in management. That mentioned, sellers should meet excessive requirements, resembling providing free one—or two-day transport.
If Amazon SFP isn’t best for you, there are different methods to develop your enterprise. If you belief our providers, you’re employed with a devoted workforce that may give you unconditional steering and help in your Amazon vendor path.
Creator
Stephanie Jensen has been writing ecommerce content material for seven years, and her copy has helped quite a few shops rank on Amazon. Comply with her on LinkedIn for extra perception into freelance writing and creating high-quality content material.
Esteban Muñoz is a content material author at AMZ Advisers, with a number of years’ expertise in digital advertising and e-commerce. Esteban and the AMZ Advisers workforce have been capable of obtain unbelievable progress on Amazon for his or her shoppers by optimizing and managing their accounts, and creating in-depth content material advertising methods.