Requirements For Amazon Sfp Merchants
With more than 100 million active users, Amazon Prime is an attractive option for online sellers. In 2016, it got even more attractive when Amazon rolled out its Seller Fulfilled Prime (SFP), a program that allows merchants to sell their goods under the Amazon Prime badge. The seller then fulfilled those orders themselves, or through third-party logistics providers. The eligibility requirements are pretty stringent, but SFP has been a game-changer. However, now the game’s about to change again as Amazon even more stringent requirements that will make it even harder for merchants to maintain eligibility in the SFP program.
HURRY, HURRY, HURRY!
Buyers have always loved Amazon Prime’s free and super-fast delivery service. It’s become an expectation. And now Amazon wants all sellers using the Amazon Prime badge to meet the Prime program’s delivery standards. In an effort to enhance the program’s efficiency, the e-commerce giant recently announced that as of February 2021, all merchants on the SFP program will be required to:
- Use shipping methods that offer Saturday order deliveries and pickups to give customers a more consistent delivery experience.
- Meet the target metrics for one and two-day delivery promises.
- Offer nationwide delivery for all standard sized products.
Also in the announcement, the company reported that before the Covid-19 pandemic, fewer than 16% of merchants in the SFP program managed to live up to the two-day delivery promise. Now, with two-day delivery being the standard shipping time almost everywhere, Amazon has a new goal: nationwide one-day or even same-day delivery.
WHAT DOES IT ALL MEAN?
The new SFP shipping requirements are great for Amazon Prime subscribers because they receive their purchases even faster. On the other hand, this is all going to put more pressure on merchants. The new requirements mean that at least 30% of SFP merchant page views for items sold using the Prime badge must be fulfilled within the same day. They also suggest SFP sellers should own at least one warehouse to facilitate Saturday deliveries conveniently. Frankly, that’s not going to work for everyone.
The majority of merchants in the Seller Fulfilled Program joined because the program meant skipping Fulfillment By Amazon (FBA). Bypassing FBA gave merchants greater control of handling, shipping methods, packaging materials, etc. But now under Amazon’s new requirements, merchants will need access to multiple warehouses across the country to avoid paying for costly expedited shipping options. Throw in the need for Saturday delivery, and for many merchants, the math doesn’t add up. The easiest way to meet Amazon’s delivery standards is to let Amazon do it.
STILL DON’T WANT FBA?
HELP IS ON THE WAY.
There IS some good news. A reliable Third-Party Logistics provider can help small and medium-sized SFP sellers meet the new delivery standards. So you can keep your customers happy and still have control of your own destiny.
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