Selling with Amazon Prime: Choose the Best Solution Between FBA and SFP

The “Amazon Prime” stamp is a key competitive advantage for sellers on Amazon, providing greater visibility, higher conversions, and customer trust. There are two ways to obtain this certification: FBA (Fulfillment by Amazon) and SFP (Seller Fulfilled Prime). While FBA delegates all logistics to Amazon, SFP allows sellers to retain control of shipments, as long as they meet strict standards.

This article analyzes both solutions in detail, with a special focus on SFP, exploring the requirements, best practices, and strategies for getting the most out of this opportunity.

FBA is Amazon ‘s logistics service that allows sellers to ship their products to Amazon warehouses. Amazon handles storage, packaging, shipping, and customer service.

• Immediate access to the “Amazon Prime” sticker.
• Increased visibility in search results and higher conversions.
• Fast and reliable shipping thanks to Amazon’s network of logistics centers.
• Customer service and returns handling handled directly by Amazon.
• Ability to leverage the pan-European program to sell in different marketplaces without having to manage international shipments.

• High warehousing costs and presence of fees related to reporting of products sold.
• Need to send inventory to Amazon warehouses, reducing control over goods.
• Possibility of additional fees in case of long-term storage or unsold inventory.
• Less flexible management in case of need for product recall or inspection.

Seller Fulfilled Prime (SFP) is a program that allows sellers to earn the “Prime” sticker by managing logistics themselves. With SFP, a seller agrees to ship Prime orders directly from its warehouse, meeting timelines and standards set by Amazon.

• Total control over logistics and warehouse operations.
• No storage cost in Amazon warehouses, avoiding surcharges.
• Increased flexibility in managing its catalog.
• Ability to offer products that FBA does not accept, such as bulky or particularly delicate items.
• Combination of FBA and SFP, optimizing logistics strategy according to product type.
• Reaching Prime customers, increasing sales volume.

• High service standards: the seller must meet very strict shipping and delivery timelines.
• Shipping costs to be paid by the seller.
• Initial trial period, during which the Prime logo is not displayed on products.
• Autonomous management of returns, which can be a logistical challenge.

To join the SFP program, a vendor must meet strict criteria, including:

• Warehouse located in mainland Italy.
• Have an Amazon account with an active Professional sales plan in good standing.
• Guarantee delivery in 1-2 business days for Prime customers.
• Use Amazon-approved couriers (TNT, BRT, Italian Post Office).
• Purchase shipping labels through Amazon’s Buy Shipping service.

• Process at least 25 Prime orders.
• Maintain an on-time shipment rate of 99% or higher.
• Percentage of cancellations before shipment less than 0.5%.

After the probationary period, to maintain eligibility for SFP, a vendor must consistently meet the following parameters:

• 99% on-time shipping.
• 98% of orders with shipping labels purchased through Amazon.
• Percentage of cancellations less than 0.5%.
• Courier pickup time after 3:30 p.m. for Prime orders.

• Immediate acceptance of all return requests that comply with Amazon policies.
• Customers receive aprepaid return label.
• Refunds must be issued within two business days of receipt of the return.

The choice between FBA and SFP depends on several factors:

• FBA is ideal for those who want to delegate logistics and benefit from the Amazon network.
• SFP is suitable for vendors with well-structured logistics that can ensure quick delivery.

Yocabé offers strategic support for sellers who want to optimize their Amazon operations, helping them choose between FBA and SFP based on their specific needs. With Yocabe, you can:

• Analyze the costs and identify the most profitable solution.
• Monitor performance metrics to ensure compliance with Amazon standards.
• Implement optimized logistics strategies to maximize profitability by balancing the allocation of goods between FBA and SFP.
• No need for integration with shipping services required by SFP because they are already provided by us.

SFP represents a great opportunity for sellers with solid logistics, while FBA offers convenience and immediate access to Prime benefits. With Yocabé‘s support, every seller can find the optimal solution to scale their Amazon business.