SphereWMS Blog

Amazon is one of the world’s largest online marketplaces, and its Prime program, with millions of loyal Amazon customers, has revolutionized the way people shop online. To help third-party sellers compete in this marketplace and offer their products to Prime members, Amazon created the Seller Fulfilled Prime (SFP) program. This in-depth guide will explore the processes, requirements, and benefits of SFP, providing valuable insights for warehouse operators, 3PLs, and fulfillment providers.

Amazon Seller Fulfilled Prime Program Overview

The Seller Fulfilled Prime (SFP) program presents a valuable opportunity for warehouse operators, third-party logistics providers (3PLs), and fulfillment businesses to work closely with Amazon sellers. By assisting sellers in meeting the stringent SFP requirements, these businesses can help sellers leverage the coveted Prime badge on their product detail pages, thereby attracting more customers.

The Power of the Prime Badge for Your Clients

Amazon Prime members are among the most loyal and active customers on the platform, and they often filter their search results to show only Prime-eligible products. By helping your seller clients display the Prime badge on their product listings, you can contribute to their increased visibility and sales, further solidifying your partnership with them.

Benefits of SFP for Warehouse Operators and Fulfillment Businesses

1. Expanded Client Base: By offering SFP-compatible services, you can attract more Amazon sellers as clients, potentially expanding your business.
2. Stronger Client Relationships: Assisting your clients in meeting the SFP requirements can lead to increased customer satisfaction and long-term partnerships.
3. Competitive Advantage: Offering SFP support can differentiate your business from competitors that do not provide such services.
4. Streamlined Operations: Helping clients with SFP can lead to more efficient fulfillment processes and operational improvements in your warehouse.

Seller Fulfilled Prime Requirements and How Warehouse Operators and Fulfillment Businesses Can Help

To participate in the Seller Fulfilled Prime program, sellers must meet strict performance standards. As a warehouse operator or fulfillment business, you can play a crucial role in helping your clients meet these requirements:

• Trial Period: Support your clients in successfully completing a trial period to demonstrate their ability to meet Amazon’s stringent requirements for SFP, such as on-time shipping and nationwide delivery coverage.
• On-Time Delivery Rate: Ensure your fulfillment processes are efficient and timely to help your clients maintain a 99% on-time delivery rate for Prime orders.
• Shipping Performance: Assist your clients in achieving a valid tracking rate of at least 95% for their Prime shipments.
• Use of Amazon Buy Shipping Services: Help your clients integrate Amazon’s Buy Shipping services into their workflow, ensuring that at least 99% of shipping labels for Prime orders are purchased through the platform.
• Shipping Template: Work with your clients to configure their shipping template in Seller Central to offer Premium Shipping options (two-day and/or next-day shipping) for Prime members.
• Cancellation Rate: Minimize order cancellations by maintaining accurate inventory levels and promptly addressing any issues that may arise, helping your clients achieve a cancellation rate of less than 0.5%.
• Two-Day Delivery Window: Offer fast, nationwide shipping options to help your clients provide a two-day delivery window for Prime orders at no extra cost to the customer.
• Weekend Fulfillment Requirements: Be prepared to fulfill orders and handle customer service requests on weekends and holidays to meet SFP requirements.
• Customer Service Inquiries: Support your clients in promptly responding to customer service inquiries and maintaining a low order defect rate.

By understanding and addressing these SFP requirements, warehouse operators and fulfillment businesses can effectively support their Amazon seller clients in achieving and maintaining their Prime status, ultimately contributing to their success on the platform.

Understanding the Fulfillment Process for Seller Fulfilled Prime Orders

To ensure a seamless experience for customers, SFP sellers must adhere to specific guidelines while fulfilling orders:

1. Receive orders: Sellers receive orders either through their own eCommerce website or via the Amazon marketplace.
2. Pick and pack: Sellers must pick and pack the orders using their own inventory and packaging materials, ensuring zero day handling time.
3. Shipping: Orders must be shipped using the shipping services purchased through Amazon’s Buy Shipping Services, adhering to the two-day delivery window for Prime shipments.
4. Tracking: Accurate tracking information must be provided to both Amazon and the customer.
5. Returns: Returns must be processed quickly and accurately by the seller or through a third-party logistics (3PL) provider to maintain a low order defect rate.

Implementing SFP Support in Your Business

1. Evaluate your current fulfillment capabilities: Assess your existing infrastructure, equipment, and workforce to determine if you can meet the SFP requirements. Identify areas for improvement and create an action plan to enhance your capabilities.
2. Familiarize yourself with SFP requirements: Ensure you understand the SFP program requirements and performance metrics. This knowledge is essential for developing effective strategies to support your clients in meeting these standards.
3. Communicate with your clients about SFP support services: Proactively inform your clients about your ability to support their SFP needs. Explain the benefits of participating in the program and outline the requirements they must meet. Offer guidance and assistance throughout the process.
4. Monitor your performance to improve SFP support services: Regularly track your performance metrics to identify areas for improvement. Use this data to make adjustments and optimize your operations to better support your clients in the SFP program.

Optimizing Your Warehouse for Seller Fulfilled Prime Success

Before you can succeed in helping your e-commerce clients with SFP, you must optimize your warehouse for optimal performance. The key elements of a successful fulfillment operation include:

• Efficient warehouse layout and organization: Design your warehouse layout to optimize space utilization and facilitate the efficient movement of products. This can involve organizing products by size, weight, or popularity, implementing vertical storage solutions, and utilizing the most appropriate storage equipment, such as pallet racking or shelving systems.
• Staff training and development: Ensure your warehouse employees are well-trained and knowledgeable about SFP requirements, as well as best practices in warehouse operations. Offer ongoing training and development opportunities to enhance their skills and maintain a high-performing workforce.
• Data-driven decision-making: Use data and analytics to make informed decisions about warehouse operations, inventory management, and shipping processes. Analyze key performance indicators (KPIs) to identify trends, bottlenecks, and opportunities for improvement.
• Implementing lean warehousing principles: Adopt lean warehousing principles to minimize waste, streamline processes, and improve overall efficiency. This can involve techniques like 5S (Sort, Set in Order, Shine, Standardize, and Sustain), continuous improvement, and just-in-time inventory management.
• Technology integration: Invest in technologies that can enhance your warehouse operations and support SFP requirements. This may include barcode scanners, automated storage and retrieval systems, conveyor systems, and robotics. SphereWMS offers features that are specifically designed to support SFP sellers and their fulfillment partners.
• Streamline pick and pack processes: Develop efficient pick and pack processes to minimize errors, speed up order processing, and enhance customer satisfaction. This can involve implementing batch picking, zone picking, or pick-to-light systems to improve accuracy and efficiency.
• Automate shipping processes: Use shipping software to generate shipping labels, automatically update tracking information, and reduce manual errors. Automation can also help ensure compliance with Amazon’s Buy Shipping Services requirements for SFP sellers.
• Optimize shipping and packaging materials: Select lightweight packaging materials and appropriate box sizes to minimize shipping costs and reduce damage during transit. Partner with reliable shipping carriers to ensure fast and accurate delivery.
• Develop efficient inventory management strategies: Implement a comprehensive inventory management system to maintain accurate stock levels, reduce stockouts, and prevent overstocking. This can involve using real-time data, demand forecasting, and inventory optimization tools.
• Prioritize two-day and next-day shipping options: Offer fast shipping options to help your clients provide a two-day delivery window for Prime orders. This can involve negotiating with carriers for better rates, optimizing shipping routes, and strategically locating your warehouse for faster delivery times.
• Implement quality control measures to maintain high standards: Establish quality control procedures to ensure that products are accurately picked, packed, and shipped. Regularly inspect products for damage or defects and address issues promptly.

By implementing these best practices and offering comprehensive support services, your warehouse or fulfillment business can help clients succeed in the Seller Fulfilled Prime program. This can lead to increased client satisfaction, stronger partnerships, and business growth.

Related: How to Manage Your Warehouse Like You’re Amazon

Offering Additional Services to Support SFP Sellers

Aside from fulfilling orders, SFP sellers can benefit from a number of additional services, including:

• Returns management: Provide efficient and hassle-free returns processing for your clients. This can involve inspecting returned items, restocking inventory, and processing refunds or exchanges.
• Product preparation and bundling: Offer services like labeling, poly bagging, and bundling to help your clients meet Amazon’s product preparation requirements.
• Custom packaging solutions: Provide custom packaging options, such as branded boxes or eco-friendly materials, to enhance your clients’ brand image and customer experience.
• Kitting and assembly services: Assemble multi-component products or create kits and bundles for your clients, streamlining their operations and adding value to their offerings.
• Labeling and barcoding: Apply barcode labels and other necessary identifiers to products to ensure accurate tracking and inventory management.
• Cross-docking and just-in-time inventory management: Implement cross-docking and just-in-time inventory strategies to minimize storage costs and improve order processing times for your clients.

How SphereWMS Supports Seller Fulfilled Prime

As a warehouse operator, 3PL, or fulfillment provider, implementing SphereWMS can help you meet SFP requirements and provide exceptional service to your customers, including seamless integration with retail EDI for Amazon:

• Inventory management: SphereWMS enables real-time inventory tracking, ensuring that your stock levels are accurate, and you can efficiently manage your products. Accurate inventory management is crucial for maintaining your Prime eligibility.
• Order processing: SphereWMS streamlines your order processing workflows, ensuring quick and accurate order fulfillment. This helps you meet the zero day handling time requirement and provide a seamless experience for your customers.
• Shipping integration: SphereWMS seamlessly integrates with Amazon’s Buy Shipping Services, allowing you to purchase and print shipping labels directly from the platform. This integration simplifies the shipping process, ensuring compliance with Amazon’s shipping label requirements.
• Retail EDI Amazon Integration: SphereWMS supports Retail EDI Amazon integration, which facilitates seamless communication between your warehouse management system and Amazon’s systems. This integration allows you to efficiently process and fulfill Amazon orders while maintaining compliance with Amazon’s EDI requirements. It also helps to streamline order management, minimize errors, and reduce processing time, ultimately improving your customers’ experience and supporting your success in the Seller Fulfilled Prime program.
• Reporting and analytics: SphereWMS provides valuable insights into your fulfillment performance through comprehensive reporting and analytics. By monitoring key performance indicators (KPIs) such as on-time delivery rates and cancellation rates, you can make data-driven decisions to improve your SFP operations.
• Scalability: As your business grows, SphereWMS can scale with you, providing the support and features you need to manage increased order volumes and maintain your Prime status.

Benefits of Partnering with a 3PL or Fulfillment Provider for SFP Success

Working with a third-party logistics (3PL) or fulfillment provider can offer numerous advantages for Seller Fulfilled Prime clients. By leveraging the expertise and resources of a 3PL or fulfillment partner, sellers can focus on growing their business while ensuring they meet Amazon’s strict SFP requirements, without the need to manage their own warehouse:

1. Expertise and experience: A 3PL or fulfillment partner brings extensive knowledge of SFP requirements, warehouse management, and shipping best practices. By relying on their expertise, sellers can optimize their operations and meet Amazon’s stringent performance standards.
2. Technology and infrastructure: Partnering with a 3PL or fulfillment provider gives sellers access to advanced technology and infrastructure, such as warehouse management systems like SphereWMS, which can help streamline inventory management, order processing, and shipping.
3. Cost savings: A 3PL or fulfillment partner can offer cost-effective solutions for storage, labor, and shipping, enabling sellers to save on operational expenses while benefiting from their partner’s economies of scale.
4. Scalability and flexibility: A 3PL or fulfillment provider can easily scale their services to accommodate fluctuations in demand or business growth, giving sellers the flexibility they need to succeed in the rapidly changing e-commerce landscape.
5. Weekend fulfillment support: Partnering with a 3PL or fulfillment provider can ensure that sellers meet Amazon’s weekend fulfillment requirements, as these businesses have the resources and staff to process and ship orders during weekends.

By emphasizing the benefits of partnering with a 3PL or fulfillment provider, you can demonstrate the value of your services and attract SFP clients looking for expert support and reliable solutions to help them succeed on Amazon.

Balancing SFP with FBA

Many Amazon sellers choose to use a combination of Fulfillment by Amazon (FBA) and Seller Fulfilled Prime to optimize their fulfillment strategy. FBA sellers can take advantage of Amazon’s extensive fulfillment network and reduce their fulfillment costs, while SFP allows sellers to offer Prime shipping on products that may not be suitable for FBA due to size, weight, or other factors.

By offering both FBA and SFP options, sellers can maximize their product listings’ visibility and appeal to the most loyal Amazon customers who value the Prime badge and the benefits it provides.

Two-Day Shipping and Premium Shipping Options

Offering two-day shipping and other premium shipping options can help attract Prime customers and increase your products’ visibility in the Buy Box. These premium shipping services ensure that your products reach customers quickly, improving customer satisfaction and driving repeat business.

To offer premium shipping options, it’s essential to maintain a reliable supply chain and work closely with your shipping partners to ensure that all orders are processed and shipped promptly.

Prime Eligible Products and Prime Listings

To maximize the benefits of the SFP program, it’s essential to identify the products that are most likely to be popular with Prime customers and focus on making these products Prime eligible. By doing so, you’ll attract a larger share of Amazon’s most loyal customers and increase your chances of winning the Buy Box.

Maintaining accurate and up-to-date product detail pages is also crucial for ensuring that your Prime listings are visible and attractive to potential customers. Ensure your listings provide all the necessary information and showcase the benefits of choosing your Prime-eligible products.

Conclusion

Successfully participating in the Amazon Seller Fulfilled Prime program requires a strategic approach to managing your warehouse, optimizing your supply chain, and balancing SFP with other fulfillment options like FBA. By investing in the right infrastructure, technology, and processes, you can ensure that your products are attractive to Prime customers and meet the strict requirements of the SFP program.

Implementing a warehouse management system like SphereWMS will further streamline your operations and help you stay competitive in the rapidly evolving world of e-commerce. With careful planning and a commitment to providing exceptional customer service, you can leverage the SFP program to grow your business by helping your clients reach new heights of success on the Amazon marketplace.

FAQs

What is Amazon Seller Fulfilled Prime (SFP)?

Amazon Seller Fulfilled Prime is a program that allows qualified sellers to display the Prime badge on their product detail pages and fulfill orders themselves or through a third-party fulfillment partner. This allows sellers to offer their products to millions of Prime members and leverage the benefits of the Prime program.

What are the requirements for joining Seller Fulfilled Prime?

To join the SFP program, sellers must complete a trial period, maintain specific shipping performance metrics (on-time delivery rate, valid tracking rate, and cancellation rate), use Amazon Buy Shipping Services for shipping labels, configure their shipping template, and promptly respond to customer service requests.

What is the role of warehouse operators and fulfillment businesses in the Seller Fulfilled Prime program?

Warehouse operators and fulfillment businesses play a crucial role in helping their clients meet SFP requirements, including on-time delivery, shipping performance, label purchasing, and customer service. They also support sellers in maintaining accurate inventory levels and offering fast, nationwide shipping options.

How do I optimize my warehouse for Seller Fulfilled Prime?

To optimize your warehouse for SFP, invest in a robust warehouse management system (WMS) like SphereWMS, streamline your pick and pack processes, automate shipping processes, and optimize your shipping and packaging materials.

How can SphereWMS help me with Seller Fulfilled Prime?

SphereWMS simplifies inventory management, streamlines order processing, integrates with Amazon’s Buy Shipping Services, provides reporting and analytics, and scales with your business. By implementing SphereWMS, you can effectively manage your SFP operations and provide exceptional service to your customers.