What is Amazon Prime?

Amazon Prime is a monthly subscription service that all Amazon shoppers are allowed to use.

For standard members, it costs $119 per year and $12.99 per month. This price is $59 per year and $6.49 per month for students.

There are many privileges that Amazon Prime provides for users like special streaming, reading and shopping benefits. These users are also receiving shipping perks. Here are some benefits of Amazon Prime:

  • Free 2-hour shipping
  • Free same-day, one-day and two-day shipping
  • Saturday shipping
  • Release-date delivery

At this point, Amazon has more than 300 million active customers, with 90 million Prime subscribers in the U.S. alone.

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What is Amazon Prime Seller?

To become a prime seller, there is a long wait list currently. But there are lots of thing to make yourself ready while waiting to be accepted. At this time, you can search for a suitable shipping partner for your store.

After you are moved from waiting list to trial period, you will be ready to cover Seller Fulfilled Prime’S (SFP) requirements.

  • Offer premium shipping options to your customers
  • Ship over 99% of your orders on time
  • Keep your cancellation rate less than 0.5%
  • Use Amazon’s Buy Shipping Services for at least 99% of your orders
  • Deliver orders with Amazon-approved carriers
  • Agree to and follow Amazon’s returns and refunds policies
  • Allow Amazon to handle customer service inquiries
  • Show you can fulfill orders with “zero-day” handling time

Amazon doesn’t specify an exact time frame for their SFP trial period, and the Prime badge will not be displayed during your trial. But once Amazon decides you’ve completed the trial successfully, the ASINs you enrolled will automatically show the badge on their listings.

How to sell on Amazon Prime?

If you want to become a part or Amazon Prime as a third-party seller, you have two options to choice: Seller Fulfilled Prime and Fulfillment by Amazon.

Fulfillment by Amazon (FBA)

Fulfillment By Amazon (FBA) is a service provided by Amazon that provides storage, packaging, and shipping assistance to sellers. This method takes the burden off of sellers and supports them to be more flexible in their selling practices. The program allows the sellers to ship their merchandise to an Amazon fulfillment center, where items are stored in storages until they are sold. When an order is placed, an Amazon employee prepare, package, and ship the product.

The advantages of FBA:

  • Using brand name of Amazon on products
  • Having subsidized shipping fees
  • Shipping on multi-channel fulfillment
  • Standardization of shipping
  • Being able to access to the Prime Audience
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Seller Fulfilled Prime (SFP)

Amazon Seller Fulfilled Prime (SFP) is an option for third-party sellers to ship out Amazon Prime orders to their customers within the 2-day delivery SLA from their own warehouse. This is up to the seller meeting the demanding requirements and SLA windows expected of Amazon.

Being available and continuing to cover the requirements of SFP is harder because Amazon asks you to keep the integrity of your business and be sustainable.

The advantages of Amazon SFP: There are several advantages of Amazon SFP besides its requirements like FBA for sellers to choose it as an option for their store. Here are some benefits of  it;

  • Increase your profits via Prime logo
  • Take advantage of Amazon’s customer service
  • Pay less than FBA
  • Have more control and options than FBA
  • Use your own storage

 

The requirements of Amazon Seller Fulfilled Prime (SFP) is like below;

  • Having a professional seller account on Amazon
  • Offering premium shipping options to your customers
  • Shipping almost all of your orders on time
  • Have an order cancellation rate less than 0.5%
  • Using Amazon BUY Shipping Services for almost all of your orders
  • Delivering orders of customers with Seller Fulfilled Prime carriers supported by Amazon
  • Agreeing to the Amazon Returns Policy
  • Allowing for all customer service inquiries to be dealt with by Amazon

To apply Amazon’s Seller Fulfilled Prime program, there is a trial period for sellers to register and complete. All sellers must prove they can cover all the requirements to become a part of it and develop.

Why should you sell Amazon Prime?

Alternatives like Amazon Prime can increase your incomes and customer base. Prime does this by encouraging customers to spend more money by offering incentives, such as giving customers free two-day shipping on a wide variety of products without a minimum order.

A survey of 2,000 U.S. Amazon.com customers by RBC found that the average Amazon Prime customer spent $538 a year on the site. Compare this to the $320 that the average Amazon customer spends and you will see the instant advantage to using Prime in your Amazon e-commerce strategy.

 

A good guider will help you a lot when you decide to be a part of dropshipping world. If you need help to boost your business  and increase your sales, start using Pirahas! Pirahas helps you to use right niche for your store and makes the necessary analyzes. Enjoy your free time that you will have!

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