Seller Fulfilled Prime Delivery

Seller Fulfilled Prime (SFP) is an Amazon program that allows eligible sellers to display the coveted Prime badge on their product listings whilst fulfilling orders themselves or via a 3PL like Lama Fulfilment, instead of relying on Amazon’s fulfilment centres.

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What is Amazon Seller Fulfilled Prime?

Seller Fulfilled Prime (SFP) is an Amazon program that allows eligible sellers to display the coveted Prime badge on their products listings whilst fulfilling orders themselves or via a 3PL like Lama Fulfilment, instead of relying on Amazon’s distribution centres.

SFP vs. FBA: Key Differences

Amazon provides several fulfilment options for sellers. The two most popular are Fulfilment by Amazon (FBA) and Seller Fulfilled Prime (SFP). With FBA, Amazon take care of storage, picking, packing, and shipping for you. With SFP, you can reach Prime customers while keeping control over fulfilment.

What sets FBA apart?

Many sellers find that SFP lets them fulfill orders in-house or with a trusted logistics partner, like Lama Fulfillment. This way, they can still enjoy the benefits of the Prime customer base, whilst keeping in control.

Storage & Fulfilment

FBA uses Amazon’s warehouses, whereas SFP allows sellers to use their own facilities or a 3PL service.

Fees

With FBA, you pay Amazon for storage and fulfilment services, whereas SFP lets you manage these costs yourself.

Shipping

SFP sellers must use Amazon-approved carriers and meet strict delivery timelines.

Many sellers find that SFP lets them fulfill orders in-house or with a trusted logistics partner, like Lama Fulfillment. This way, they can still enjoy the benefits of the Prime customer base, whilst keeping in control.

What are the benefits of Seller Fulfilled Prime?

Access to Prime Customers

Get the Prime badge on your listings. This makes your products more appealing to Amazon’s loyal Prime members, which ultimately leads to an increase in sales and more chance of attaining the Buy Box.

Control Over Inventory & Fulfilment

Unlike FBA, which scatters stock across multiple fulfilment centres, SFP allows you to maintain full oversight of stock levels and manage orders effectively.

Branding

With SFP, sellers can control how their goods are sent out, with bespoke packaging that reinforces a consistent brand identity.

Cost Savings

For sellers who have already established efficient shipping processes or already use a 3PL, Seller Fulfilled Prime can be more cost-effective than using FBA.

Flexibility

Seller Fulfilled Prime offers sellers the flexibility to choose their own carriers and shipping methods, from a list of eligible providers,  allowing them to tailor their shipping processes to best suit their needs and those of their customers.

What is ‘Buy Shipping’ and which couriers are approved by Amazon in the UK?

Amazon Seller “Buy Shipping” is a feature that allows Amazon sellers to purchase shipping labels directly through their seller account.

When a seller receives an order, they can use the “Buy Shipping” tool to select the shipping carrier, service type, and package details. Amazon then generates a shipping label with the necessary postage, which the seller can print and affix to the package before sending it to the buyer.

Amazon Seller Fulfilled Prime Approved Couriers

Amazon Shipping

Much like Royal Mail, sellers can link their Amazon Shipping account to their Seller Account – but there’s a catch: you’ll need to be handling at least 250 parcels a day to qualify. But with Lama Fulfilment, this is no problama. Smaller sellers with less than 250 daily orders can piggy back off the 3PL’s volume and reap the rewards of better pricing with less volume.

Royal Mail

If you have a Royal Mail Business Account, you can link it to your Amazon shipping methods and use your pre-negotiated rates. This gives you more control over shipping costs, with the rates and package volumes directly negotiated between you and Royal Mail for better visibility.

DPD

When you ship with DPD, you’re using Amazon’s DPD account, not your own negotiated rates. Amazon will charge you per order, with fees deducted from your disbursement. While DPD can be pricier, they’re perfect for larger items, handling parcels up to 30kg with ease.

Evri

Named “Amazon Prime Preferred Partner” in May 2023, Evri offers sellers access to both Evri Standard and Evri Two Day Drop-off services. Sellers with 30+ daily parcels can even request an Evri collection for added convenience.

What are the requirements for Seller Fulfilled Prime eligibility?

To qualify for Seller Fulfilled Prime, your business must meet these requirements:

Steps to Enrol in Seller Fulfilled Prime

Getting started with Seller Fulfilled Prime requires careful planning. Here’s how to do it:

1

Qualify & Complete the Trial Period

Before getting SFP status, sellers must complete a trial period. During this time, they must meet Amazon’s strict shipping and performance standards.

2

Set Up Your Warehouse & Inventory

You need the right systems and processes in place to handle fast order turnaround times. This includes efficient inventory management stock software and well-trained staff.

3

Use Approved Carriers

Amazon requires SFP sellers to use Buy Shipping Services, ensuring fast and reliable deliveries.

4

Pick, Pack & Ship Orders on the Same Day

SFP orders must be despatched on the same day they are received (up to 4pm). This means a streamlined stock checking and order fulfilment process is essential.

5

Maintain Performance Metrics

After successful completion of the trial, sellers must continue meeting Amazon’s performance requirements and metrics to retain SFP status.

Best Practices for Success with SFP

To maximise the benefits of Seller Fulfilled Prime fulfilment, follow these best practices:

Common Challenges and How to Overcome Them

Seller Fulfilled Prime is no walk in the park. Amazon’s high standards mean you need to be on top of your game at all times. Here are some of the most common challenges sellers face – and how to overcome them.

By staying ahead of these challenges, you can make Seller Fulfilled Prime work in your favour – keeping customers happy while maintaining your Prime status.

Managing Shipping Costs & Logistics

Shipping costs can eat into your profits fast, especially when meeting Prime’s next-day delivery promise. Finding the right couriers, negotiating bulk shipping rates, and maintaining fast turnaround times can be tricky – especially for smaller businesses.

Meeting Amazon’s Delivery Deadlines

Amazon expects you to pick, pack, and dispatch orders at lightning speed – often on the same day the order is placed. Delays or missed deadlines can lead to losing your SFP status.

Handling Returns

Amazon’s customer-first approach means their return policies are strict. If your returns process isn’t up to scratch, you risk poor seller ratings or even removal from the SFP programme.

Why Partnering with a 3PL for SFP is a Smart Move

You may have noticed one key point mentioned to tackle each challenge above – outsourcing to a 3PL service. Handling Seller Fulfilled Prime fulfilment can sound like a logistical nightmare. This is where a third-party logistics (3PL) provider like Lama Fulfilment comes in.

Smoother, No-Stress Fulfilment

A 3PL picks, packs, and ships stock at lightning speed, keeping you compliant with Amazon’s strict requirements. They also ensure you don’t miss Seller Fulfilled Prime pick up times, and delay orders. One less thing to think about. No drama, lama!

Lower Shipping Costs

A good 3PL has bulk shipping agreements with couriers, meaning better rates and lower overall costs for your business.

Scalability

Whether you’re handling 50 orders a day or 5,000, a 3PL helps scale operations without added stress.

Avoid Amazon’s Storage Fees

FBA comes with hidden fees, especially during peak seasons. By using a 3PL, you dodge these costs while keeping fulfilment fast and reliable.

Flexibility

Seller Fulfilled Prime offers sellers the flexibility to choose their own carriers and shipping methods, allowing them to tailor their shipping processes to best suit their needs and those of their customers.

Frequently Asked Questions

Got a question? Check out our FAQs to find the answer! If your query isn’t listed, please get in touch!

What is Seller Fulfilled Prime (SFP)?

Seller Fulfilled Prime allows you to showcase the Prime badge on your listings while handling your own order fulfilment or using a 3PL like Lama Fulfilment. You get the perks of Prime without relying on Amazon’s fulfilment centres.

Unlike FBA, Seller Fulfilled Primes gives you full control over your inventory and shipping processes. When working with 3PL with efficient fulfilment setups like Lama Fulfilment, it’s often more cost-effective for sellers. What more could you want?

As a rule of thumb, anything larger than a shoe-box is usually more affordable to ship via SFP rather than FBA.

Approved Seller Fulfilled Prime couriers include DPD, Royal Mail, Amazon Shipping, and Evri. Each has its own strengths, like Royal Mail’s pre-negotiated rates or DPD’s handling of heavy parcels. We will work out which works the best for you, and your business needs.

Yes – no problama! You can link your current Royal Mail Business Account to Amazon, using your pre-negotiated rates for better control over shipping costs.

Amazon Shipping requires handling at least 250 parcels per day. But, with Lama Fulfilment, smaller sellers can piggyback on our volume to access these services without meeting the minimum themselves.

Is Your Business Ready for Seller Fulfilled Prime?

Seller Fulfilled Prime gives sellers a great chance to reach Prime customers. They can also keep control of their stock and fulfillment. While it requires meeting strict requirements, the benefits can be well worth the effort. If handling fulfilment sounds like a headache, partnering with a 3PL like Lama Fulfilment ensures smooth sailing – no problama! To lower costs, improve efficiency, or grow your business, consider SFP. A reliable logistics partner can help you achieve lasting success.

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