Unlock the Potential of Amazon SFP for Your Business

SFP Account, SFP Seller Account

Last updated on June 20th, 2023

Written by Himanshi Raj

If you're unsure or unsatisfied with Fulfillment by Amazon (FBA), you'd want to look into the benefits of Amazon Seller Fulfilled Prime (SFP). In a constantly changing environment like ecommerce, it always makes sense to diversify how you do business.

Among the options available, Amazon SFP can play a pivotal role in ensuring your business thrives in the dynamic market. If your business cannot afford to hit potential slumps and economic setbacks, why not consider switching from FBA to Amazon SFP? We'll tell you why and how in this article.

What is Amazon Seller Fulfilled Prime (SFP)?

Seller Fulfilled Prime is a fulfillment option offered by Amazon for third-party sellers who want to sell with the Amazon Prime badge straight from your warehouse. With SFP, you have the freedom to choose premium shipping solutions and have full control of your inventory and order fulfillment. 

SFP vs. FBA: How is Amazon SFP (Seller Fulfilled Prime) Better than FBA?

Amazon Seller Fulfilled Prime is only one of the two ways to sell on Prime. There is also FBA, which you may have initially considered. So why consider SFP as a good alternative? Here are some reasons SFP may be a better option for your business: 

woman making a choice with two smartphones

The Prime badge entitles you to sell products to Amazon Prime members.

With a Prime badge, you can sell your products to over 200 million buyers. This badge indicates that you're qualified to provide fast and convenient shipping of their orders. Prime customers expect fulfillment and delivery to happen within 1-2 days.

What's more, they are eligible for free shipping, which non-Prime orders can't enjoy. If you can address your Prime customers’ need for convenience this way, SFP can be a massive advantage for you. Before you know it, the millions of visitors on your product page will convert into sure buyers.

You can store your products in your own or a third-party warehouse.

In the FBA program, Amazon takes care of everything—from packing and picking up your products, delivering them to your customer's doorsteps, and providing customer service.

It's a convenient fulfillment option for many online sellers, but there's a downside: you have zero control over your inventory once you ship them to an Amazon fulfillment center. Your stock can suffer accidental handling damages, which may be subject to reimbursements from Amazon

But with the Amazon Seller Fulfilled Prime program, it's your own warehouse and, therefore, your rules. You can do the entire order fulfillment process yourself or employ reliable and experienced staff to do this for you. With your direct involvement or knowledge of the product, you can also provide a more helpful and personalized customer service experience.

You're saved from paying steep storage fees because you don't use the FBA warehouse.

Amazon FBA sellers think they can just sit back and relax as Amazon does everything for them. They could not be more wrong. Of course, such convenience comes at a cost. And if they are not careful, they will be spending more on FBA than profiting from it.

For one, FBA fees are subject to change at any time. Letting Amazon handle your inventory when it goes stale, or business is slow is impractical. Why? Because stock sitting in their fulfillment center for longer than six months incurs a long-term storage fee.

Storage fees are the least of Amazon SFP retailers' worries. Although fulfilling orders independently is much more work on your part, you don’t have to pay fees for storage, upkeep, and fulfillment. Your profit margin also increases as a result.

You focus solely on the inventory stored in your own warehouse/s.

Your control over your inventory depends on where you're storing them. Sending them to Amazon's warehouses means you have nothing to pull from when you want to sell on another channel or run flash sales on your website. If you need them back, you can always recall them from Amazon, but fees apply.

This wouldn't be a problem in the first place if you store your stock in your own warehouse. It's particularly advantageous if you have a physical store, are active on other e-commerce platforms, and are expecting an influx of orders from a sales event.

Your chances of winning the “Buy Box” increase.

Did you know that Amazon sellers have to compete to get the Buy Box feature on their product page? Winning the Buy Box depends on your performance in 14 areas—the second most important is the fulfillment method.

About the Buy Box
clicking on the amazon buy box buy now
The Buy Box is that prominent white box on the right side of Amazon's product detail page. It presents the buyer with what the platform considers the best deal but is not necessarily the cheapest option. It distinguishes a product from the rest, addressing the issue of overwhelming choices for buyers.

Not all sellers are eligible to win the Buy Box, and you also have to compete for it.

If you are a Seller Fulfilled Prime Amazon seller, you have priority over Fulfillment by Merchant sellers because of premium shipping services. FBA sellers also enjoy this advantage.

2 people holding an amazon package

Customers who order from you enjoy quick delivery speed, which helps boost your brand's reputation.

Customers who get their orders fast are happy customers. In turn, happy customers become loyal customers. Some studies prove this:

  • A 2022 Marketing Profs study revealed that 53% of customers cancel or abandon their purchase because the delivery was too slow.
  • 62% of online US customers consider fast delivery as the most significant aspect of a good customer experience, according to a 2019 study from Insider Intelligence.
  • About 67% indicated a willingness to pay more for same-day delivery of packages needed at a specific time.
  • And according to this 2022 study from PWC, 41% of online buyers are more than willing to pay extra for same-day delivery. 

A Few Cons

No program is not without its disadvantages. Here are some areas where Seller Fulfilled Prime needs to catch up:

Self-fulfillment responsibilities can be stressful.

Offering free two-day shipping to your buyers means that (1) you will be responsible for paying their shipping fees, and (2) you will have the added stress of fulfilling your promise of quick delivery.

Since you need to buy your packing slips from Amazon, you must access Amazon and go through the process. This may prove tedious if your system is not directly integrated with the platform's API.

Failure to comply with the policies can cost your Prime badge.

You have to see to it that your warehouse and self-fulfillment processes can meet the shipping targets imposed by Amazon. Failure to do so can cost you your Prime badge. Some sellers have reported negative profits, forcing them to quit SFP.

Amazon SFP puts you on a waiting list.

Applying for SFP includes sitting on a waitlist and undergoing a Prime trial period to prove that you meet the requirements. During this period, your products will not have a Prime badge yet. Only when you pass will the Prime badge be shown on your enrolled ASINs, and you'll be automatically registered in SFP.

FBA has the upper hand in this aspect. Once enrolled in the program, you're automatically eligible for Amazon Prime. There's no need for a waiting list or a trial period. Amazon also shoulders the burden of one or two-day free shipping, but it comes with a price (and a hefty one, that is).

a back shot of an amazon seller fulfilled fulfilled prime truck

How can you join Amazon Seller Fulfilled Prime?

If you finally decide to sell on Amazon SFP, here are the requirements:


Currently, Amazon is not accepting new registrations for this program. However, a waitlist is open for those interested to join. So if you plan on registering once the sign-ups open, these requirements must be met.

  • You must have an Amazon Professional Seller account.
  • You must have Premium Shipping options available to your customers.
  • Not less than 99% of your products must be shipped on time.
  • Your order cancellation rate must be less than 0.5%.
  • Amazon Buy Shipping must be the shipping service provider for 99% of your orders.
  • Delivery of SFP orders must be through SFP carriers supported by Amazon.
  • Utilize shipping methods that accommodate weekend delivery and pickup.
  • You must agree to and comply with Amazon's return policy.
  • You must let Amazon deal with all customer service inquiries.
  • All Amazon Prime offers must be available for nationwide delivery coverage.
  • You must promise one-day delivery for at least 20% of your products and two-day delivery for at least 55%.

Getting Started

As mentioned, you must go through a trial period before becoming a full-fledged Amazon SFP seller. Depending on your performance, it can be as short as five days or as long as 90 days. Among other things, the platform looks at the delivery speed, tracking rate, and cancellation rate. 

Once you pass this trial, Amazon will automatically enroll you in the SFP program and give your enrolled ASINs your Amazon Prime badge.

The Benefits of Selling on Amazon Prime

Whether you're an Amazon SFP or Amazon FBA seller, here are other reasons for selling on Amazon Prime that can drastically change the course of your ecommerce journey. 

Prime shoppers are the ones who come to you.

On Amazon Prime, customers voluntarily come to you rather than the other way around. Prime members are loyal members of the Amazon marketplace. That's because they get to enjoy these perks:

Top-Notch Shipping Services

Prime offers FREE and FAST shipping services for qualified purchases. It offers one- and two-day shipping on eligible orders. Prime subscribers can also get two-hour delivery for free if their zip code is included in the Prime Now list.

Regarding specific rates, Amazon allows shipping for as low as $7.99 per item every Saturday. For standard shipping, the waiting period is only 4 to 5 business days.

Unlimited Streaming

Prime users can enjoy unlimited movies, TV episodes, and music streaming. They may access Amazon Channels like HBO, SHOWTIME, and STARZ. It also has Twitch Prime, which is perfect for avid gamers.

Shopping Galore

  • Prime shoppers can get exclusive savings from Amazon's Whole Foods Market with 2-hour delivery in select cities. 
  • Prime shoppers can earn 5% back when they shop at Amazon.com and Whole Foods Market using the Amazon Prime Rewards Visa Signature card.
  • Prime shoppers can get seven days to try the items in the Prime Wardrobe at home before purchasing them. 

Reading Benefits

Prime subscribers who love to read can borrow various reading materials from the Prime Reading catalog. They also get early access to download new books for free every month.

Other Benefits

  • Amazon allows two adults in the same household to share particular Amazon Prime benefits.
  • Prime users can also enjoy unlimited photo storage using Amazon Photos.

As an Amazon seller, you will have exclusive access to Prime's ready-to-buy customer base, which possesses high purchasing power, thanks to the rewards buyers can avail of for their membership.

Amazon markets you.

Amazon does the marketing for you. When you visit Amazon Prime's website, its homepage displays all the benefits its subscribers can enjoy. There is also the lure of free and speedy delivery service.

Prime buyers pay more.

Besides having strong purchasing power, Prime subscribers are willing to pay more. They have no qualms about spending a monthly membership fee of $14.99 or an annual fee of $139. On average, Prime members spend $1400 on Amazon yearly, twice that of non-Prime members.

You have more chances to get your products featured.

You will have a chance to win the Buy Box by default.

In a Nutshell: How Amazon SFP Can Help Your Business Thrive

If you want to appeal to Amazon Prime customers and have flexible shipping options to withstand ecommerce challenges, a Seller Fulfilled Prime account may be your best bet. By leveraging the SFP program, you can tap into a vast customer base that wants fast and reliable shipping.

Additionally, Amazon SFP gives you control over your fulfillment process while meeting Prime standards. Living up to the platform's and customers' expectations can increase your brand's visibility, engagement, credibility, customer trust, and business growth.

Undoubtedly, Amazon Seller Fulfilled Prime (SFP) offers a strategic advantage in securing your business's success on the dynamic platform. With Amazon Prime having every benefit you could ever want as a seller, it's now up to you to push your products on the market!

Still Taking the Amazon FBA Route? Streamline Your Process and Become a Successful Seller With Seller Interactive!

If you've decided to continue using or exploring the FBA program, you can always rely on professionals from Seller Interactive. We can handle everything, such as Seller Central account management, warehousing, fulfillment, and logistics for you with our Amazon FBA wholesale partnership program.
To better understand which option works best for your business, feel free to leverage the expertise of our highly experienced Amazon account managers, who can help you navigate your situation.

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