Seller Fulfilled Prime (Amazon SFP): Guide, Fees, Pros & Cons

Seller Fulfilled Prime is a fulfillment program that enables Amazon sellers to offer Prime shipping directly from their own warehouse or logistics partner. It gives sellers access to Prime customers without using FBA, allowing for greater control over inventory and operations. With fast, reliable delivery as a core requirement, SFP helps boost visibility and conversion rates. However, meeting Amazon’s strict performance standards is essential. In this guide, we’ll explore how Seller Fulfilled Prime works, its benefits, challenges, and how to get started.

What is Seller Fulfilled Prime (Amazon SFP)?

Seller Fulfilled Prime allows sellers to ship Prime orders directly with full control and fast delivery (Source: Internet)

Seller Fulfilled Prime (SFP) is an Amazon fulfillment program that allows third-party sellers to display the Prime badge on their listings while shipping orders directly from their own warehouses or through a logistics partner. Unlike Fulfillment by Amazon (FBA), where Amazon handles the entire fulfillment process, Seller Fulfilled Prime gives sellers full control over inventory, packaging, and shipping. By meeting Amazon’s performance standards, SFP sellers can offer Prime-eligible delivery options – such as same-day, one-day, or two-day shipping-using Amazon-partnered carriers like UPS or FedEx. This model is ideal for businesses seeking both Prime visibility and operational flexibility.

How does Seller Fulfilled Prime work?

Seller Fulfilled Prime (SFP) allows third-party sellers on Amazon to offer Prime shipping while managing their own fulfillment processes. Here’s how it works:

Enrollment Process: Sellers must first prequalify for the SFP program by meeting specific performance metrics, including late shipment rates, valid tracking, and cancellation rates. Once prequalified, they can register for a 30-day trial period to demonstrate their ability to meet Amazon’s standards for Prime delivery.
Fulfillment Options: During the trial and after enrollment, sellers can fulfill orders from their own warehouses or through third-party logistics providers (3PLs). They have the flexibility to choose their shipping carriers and methods, allowing for customized fulfillment strategies.
Prime Badge: Once enrolled, sellers can display the Prime badge on their product listings, indicating to customers that they are eligible for fast and free shipping. This badge enhances visibility and can significantly increase sales potential, as Prime members tend to spend more.
Performance Monitoring: Sellers must continuously meet Amazon’s performance requirements to maintain their SFP status. This includes ensuring on-time delivery and managing customer service inquiries effectively. Amazon provides tools and dashboards to help sellers monitor their performance metrics.
Customer Service: While sellers handle pre-order inquiries, Amazon manages post-order customer service, including returns and refunds, which helps streamline the overall customer experience.

Who can use Amazon’s Seller Fulfilled Prime program?

Amazon’s Seller Fulfilled Prime program is available to professional third-party sellers who meet strict performance criteria, including a proven track record of on-time shipping, low cancellation rates, and reliable tracking. Eligible sellers must also use Amazon-approved carriers and be capable of fulfilling Prime orders from their own facilities or through a trusted 3PL. SFP is best suited for merchants with established logistics systems seeking to offer Prime benefits without relying on FBA.

Seller Fulfilled Prime is for pro sellers with strong logistics who meet Amazon’s (Source: Internet) — Seller Fulfilled Prime is for pro sellers with strong logistics who meet Amazon’s delivery and performance standards (Source: Internet)

What are the requirements for Seller Fulfilled Prime?

To participate in Amazon’s Seller Fulfilled Prime (SFP) program, sellers must meet several specific requirements designed to ensure a high level of service for Prime customers. These requirements include:

Professional Selling Account: Sellers must have an active Professional selling account on Amazon to enroll in the SFP program
Domestic U.S. Address: A domestic U.S. address must be set as the default shipping address for the seller’s account. This is essential for fulfilling Prime orders within the required timeframes.
Performance Metrics: Sellers must demonstrate their ability to meet Amazon’s performance standards, which include:
- On-Time Shipment Rate: At least 99% of orders must be shipped on time.
- Cancellation Rate: The order cancellation rate must be less than 0.5%.
- Valid Tracking: Sellers must use Amazon’s Buy Shipping services for at least 98.5% of their orders to ensure valid tracking information is provided.
Trial Period: After pre qualifying, sellers must successfully complete a 30-day trial period where they fulfill a minimum number of Prime orders while adhering to the performance metrics outlined by Amazon.
Customer Service Commitment: Sellers must allow Amazon to handle all post-order customer service, including returns and refunds, to maintain a consistent customer experience.

Amazon Seller Fulfilled Prime: Pros & Cons of SFP

Below, we outline the key pros and cons of Seller Fulfilled Prime, providing insights into how it can impact your business operations and profitability:

Amazon SFP Pros

Increased sales potential: Sellers can display the Prime badge on their listings, which significantly enhances product visibility and can lead to an average sales uplift of over 50% for Prime-eligible products.
Control over fulfillment: Unlike Fulfillment by Amazon (FBA), SFP allows sellers to manage their own inventory and shipping processes. This control enables sellers to customize their fulfillment strategies and branding.
Cost savings: SFP can be more cost-effective than FBA, as sellers avoid high storage and handling fees associated with Amazon’s warehouses. This can lead to higher profit margins, especially for sellers with large or bulky items .
Access to Amazon’s customer service: Sellers benefit from Amazon’s 24/7 customer service for post-order inquiries, which helps enhance customer satisfaction and streamline the returns process.

Seller Fulfilled Prime Cons

Strict performance requirements: To maintain SFP status, sellers must adhere to stringent performance metrics, including a 99% on-time shipment rate and a cancellation rate of less than 0.5%. Failure to meet these standards can result in losing Prime eligibility.
Challenges with scalability: As order volumes increase, managing fulfillment can become complex. Sellers need to invest in robust logistics infrastructure to handle the demands of fast shipping and customer service effectively.
Higher shipping costs: Providing fast shipping options can lead to increased shipping expenses, particularly for sellers without multiple warehouses across the country. This can impact profit margins if not managed carefully.
Limited flexibility in shipping: Sellers must use Amazon-approved carriers and adhere to specific shipping timelines, which can limit their flexibility in choosing shipping methods that may be more cost-effective.

SFP boosts sales with the Prime badge, offers fulfillment control, lowers costs, and includes Amazon’s customer service support (Source: Internet)

How to enroll in Seller Fulfilled Prime

Enrolling in Amazon’s Seller Fulfilled Prime (SFP) program involves a series of steps that allow sellers to offer Prime shipping while managing their own fulfillment processes. Here’s a concise guide on how to get started:

Step 1 – Register

First, ensure you have a Professional selling account on Amazon. If you do not have one, you will need to sign up. Once you have your account, visit the Seller Fulfilled Prime trial registration page to check if you prequalify for the program based on your performance metrics, such as late shipment and cancellation rates.

Step 2 – Enable Prime shipping

After pre qualifying, you need to enable Prime shipping in your shipping settings. This involves configuring a Prime shipping template in Seller Central, where you can specify delivery regions and shipping options that meet Amazon’s Prime standards.

Enable Prime shipping by setting up a shipping template that meets Amazon’s delivery standards in Seller Central (Source: Internet)

Step 3 – Enroll items

Next, assign specific SKUs (Stock Keeping Units) to the Prime shipping template. Only the items linked to this template will be eligible for Prime shipping during the trial period. This step is crucial as it determines which products will carry the Prime badge.

Step 4 – Fulfill Prime trial orders

Once your items are enrolled, you will begin fulfilling Prime trial orders. During this 30-day trial, you must meet Amazon’s performance requirements, including shipping orders on time and maintaining low cancellation rates. Successfully completing this trial will lead to full enrollment in the SFP program.

Fulfill Prime trial orders for 30 days to meet performance standards and qualify for full SFP enrollment (Source: Internet)

What’s the difference between fulfillment by Amazon (FBA), Fulfilled By Merchant (FBM), and Seller Fulfilled Prime?

When selling on Amazon, understanding the differences between Fulfillment by Amazon (FBA), Fulfilled By Merchant (FBM), and Seller Fulfilled Prime is crucial for optimizing your logistics strategy. Each method has distinct features, advantages, and challenges:

FBA

FBA allows sellers to store their products in Amazon’s fulfillment centers. Amazon then takes care of storage, packing, shipping, customer service, and returns. This method offers several benefits:

Prime Eligibility: Products fulfilled through FBA are automatically eligible for Amazon Prime, which can significantly increase sales due to the large base of Prime members.
Customer Service: Amazon handles all customer inquiries and returns, allowing sellers to focus on other aspects of their business.
Scalability: FBA enables sellers to scale their operations without needing to manage logistics directly.

FBM

FBM gives sellers full control over their inventory and shipping processes. Sellers store their products and handle all aspects of fulfillment themselves or through third-party logistics providers. Key points include:

Cost Control: Sellers can potentially save on fees associated with FBA, especially if they have efficient logistics systems in place.
Customization: FBM allows for personalized packaging and customer interactions, which can enhance the customer experience.
Flexibility: Sellers can choose their shipping methods and manage inventory according to their specific needs.

FBM offers sellers control, cost savings, and flexibility in managing inventory, shipping, and customer experience (Source: Internet)

SFP

SFP is a hybrid model that allows sellers to offer Prime shipping while fulfilling orders themselves. This method combines elements of both FBA and FBM:

Prime Badge: Sellers can display the Prime badge on their listings, increasing visibility and sales potential.
Control Over Fulfillment: Like FBM, sellers manage their own inventory and shipping, allowing for customization and direct customer interaction.
Performance Standards: To maintain SFP status, sellers must meet strict performance metrics, including on-time shipping and low cancellation rates.

Should your business use Seller Fulfilled Prime?

Seller Fulfilled Prime is a smart choice for businesses with robust logistics capabilities or partnerships with reliable 3PL providers. It allows sellers to retain control over inventory and shipping while gaining access to Amazon’s Prime customer base. To succeed, sellers must consistently meet Amazon’s performance metrics, including on-time delivery and tracking accuracy. If your business can maintain these standards, SFP offers increased visibility and potential sales growth without relying on FBA.

How to choose the right Amazon SFP provider?

When selecting a third-party logistics (3PL) provider for Amazon Seller Fulfilled Prime, consider the following key factors to ensure you make an informed decision:

Technology and Integration: Look for a provider that offers advanced technology solutions, such as real-time inventory management and seamless integration with Amazon’s platform. This capability will help you effectively monitor stock levels and order statuses, ensuring you meet customer expectations.
Geographic Coverage: Choose a 3PL with multiple warehouse locations to facilitate faster shipping. A provider with a nationwide network can significantly reduce shipping times and costs, which is vital for meeting SFP requirements for one- and two-day delivery.
Customer Service and Support: Evaluate the level of customer service provided by the 3PL. A responsive support team can help you navigate challenges and ensure that your fulfillment processes run smoothly. Strong customer service is also crucial for handling any issues that may arise during order fulfillment.
Cost Structure: Analyze the pricing model of potential providers. Look for transparency in their fee structures, including fulfillment and storage fees. A cost-effective solution can help you maintain healthy profit margins while meeting Amazon’s requirements
Scalability: Consider whether the 3PL can scale its services to accommodate your business growth. As your sales increase, your logistics needs may change, and a flexible provider can adapt to these evolving requirements without compromising service quality.

Choose a 3PL with strong tech, wide coverage, good support, clear pricing, and scalability to meet Amazon SFP standards (Source: Internet)

Simplify SFP: Fast, Efficient, and Affordable with Keys Logistics

Keys Logistics is your trusted partner for Seller Fulfilled Prime, offering fast, reliable, and scalable third-party logistics solutions tailored to Amazon sellers. With strategically located self-operated fulfillment centers in the US, UK, and Germany – plus processing hubs in Hong Kong, Vietnam, Shenzhen, and Dongguan – we help you meet Prime delivery standards without the need for in-house warehousing.

Our comprehensive SFP support includes one-piece order fulfillment, real-time inventory tracking, optimized pick-and-pack operations, and seamless last-mile delivery via trusted carriers like UPS and FedEx. Whether you’re a growing e-commerce brand or an established marketplace seller, our flexible solutions enable you to reduce fulfillment costs, enhance customer satisfaction, and stay competitive in global markets.

Seller Fulfilled Prime offers the perfect balance between operational control and Prime visibility, making it a valuable option for qualified sellers. With the right logistics support, you can meet Amazon’s high delivery standards while optimizing cost and efficiency. Understanding how SFP works – and how it compares to FBA and FBM – is key to choosing the right fulfillment strategy for your business.

Need a reliable partner to manage your SFP operations? Contact Keys Logistics today for fast, efficient, and scalable fulfillment solutions tailored to Amazon sellers!