Fulfillment by Amazon (FBA) is a service provided by Amazon that handles your inventory, shipping, and customer service. FBA allows you to store your products in Amazon’s fulfillment centers, and they pick, pack, ship, and provide customer service for these products.
However, many sellers have found that they can’t just simply transfer all of their items to FBA because of financial reasons or some items are not eligible. Instead, they end up with a mix of both FBA and Seller Fulfilled Prime (SFP).
But what is the difference between FBA and SFP? How do you decide which one to use? In this article, we will compare the differences between the two to help you decide if Seller Fulfilled Prime is right for you.
How Does It Work?
With amazon fba business, Amazon stores your inventory in its own warehouses. When customers place an order for your item on Amazon, it’s picked from the warehouse shelves, packed into a box and then shipped directly to the customer. You don’t have to worry about anything once you place your item(s) into an Amazon warehouse. That’s why many sellers like FBA.
With SFP you’re responsible for picking and packing orders from your own
To help you succeed, Amazon offers two performance-based programs — Fulfillment by Amazon (FBA) and Seller Fulfilled Prime (SFP). But there are some differences between the two.
FBA vs. SFP
As the name implies, FBA is the fulfillment program that gives sellers access to Prime benefits. If a seller has enrolled in FBA, they’re eligible to list items as Prime-eligible and Amazon will store, pack and ship their products from its fulfillment centers.
In contrast, SFP is a program that allows sellers who have proven themselves capable of delivering consistently fast shipping and high-level customer service to offer Prime benefits on orders they fulfill themselves. Sellers enrolled in this program must meet guidelines for delivery speed and customer feedback ratings to retain their Prime badge.
Seller Fulfilled Prime was introduced in 2015. It’s a program for sellers — like you — who have proven their ability to provide a Prime-quality customer experience and are approved to display the Prime badge on products they sell that aren’t fulfilled by Amazon. So why do people choose this option instead of FBA?
The main reason is control. The trade-off for having Amazon take care of shipping and customer service is that merchants must relinquish control over their inventory. With Seller Fulfilled Prime, merchants get the best of both worlds: They can manage the entire process themselves while still benefiting from the Prime badge and the associated sales bump.
In addition to having more control, sellers also select their own shipping carriers, so they can negotiate lower rates and keep shipping costs down.
Fulfillment by Amazon (FBA) is an order fulfillment service that lets you sell your products on Amazon.com and have them shipped to customers by Amazon.
Seller Fulfilled Prime (SFP) lets you ship your own products to Prime customers and maintain the “Prime” shipping eligibility designation on the product detail page.