With the number of Amazon Prime members growing to almost 100 million, it’s no wonder Amazon Sellers want to have their product listings designated as Prime-eligible products. Previously the only way for products to be Prime eligible was to participate in Amazon Retail and use Fulfillment by Amazon (FBA). But now sellers have the option of doing Amazon Seller Fulfilled Prime. Amazon Seller Fulfilled Prime allows sellers to deliver orders directly to Prime customers from their own warehouse. Sellers using Amazon Seller Fulfilled Prime commit to fulfilling orders using two-day shipping without charging additional shipping costs to Prime customers.
But why should sellers care about having the Prime badge on their product listings?
Prime members typically spend around $1,500 annually on Amazon, compared to the roughly $600 non-Prime members spend. Amazon Prime members are loyal and in 2017 accounted for about 63% of the total customers on Amazon. Not offering your products to this faithful “Prime-only” product hunter severely limits your ability to entice them to purchase your items. But some sellers don’t want to go the route of FBA because of the hassle of high fees and complicated inventory tracking. Luckily, Amazon Seller Fulfilled Prime offers sellers access to transportation solutions that can help them meet the high standards that Prime members are accustomed to.
Amazon Seller Fulfilled Prime is attractive for many reasons, including making your items more effective in competing for the Buy Box. Sellers using Amazon Seller Fulfilled Prime also benefit from Amazon’s 24/7 after-sale customer service. At no additional cost, Amazon’s customer service will help customers on your behalf with regards to tracking, refund requests, and submitting returns. With these and other benefits, many Amazon Sellers find that Amazon Seller Fulfilled Prime is a more feasible fulfillment for them over FBA.
Amazon Seller Fulfilled Prime is only open to sellers who can qualify and pass a rigorous trial period of fulfilling Prime orders before they can display the Prime badge. To start the trial period, follow these steps as outlined by Amazon:
To complete the trial, sellers must meet the following performance requirements on at least 50 Prime trial orders:
- On-Time Shipment Rate of at least 99% for Prime orders
- Use of Buy Shipping Services for at least 98% of Prime orders
- Cancellation rate of 0.5% or less for Prime orders
Once a seller has become eligible for Amazon Seller Fulfilled Prime after successfully completing the trial period and meeting the requirements, the SKUs mapped to one or more of your Prime Templates will automatically display the Prime badge on each product listing 24 hours later. The requirements outlined previously must also be continually met in order to maintain a seller’s eligibility for Amazon Seller Fulfilled Prime.
It’s important to weigh your fulfillment options carefully against your business goals and capabilities. What works for one seller won’t necessarily work for you, so you should do diligent research before deciding.