By Greg Yevich
Originally Published in Operation ROI, May 18, 2016
Amazon Seller Fulfilled Prime – Merchant Fulfilled 2-Day Delivery
Last year, Amazon began to contact certain merchants who sell on the marketplace to see if they’d be interested in taking advantage of the benefits of Prime 2-day delivery, without the need to store their goods in the Amazon warehouse. The end result, known as Seller Fulfilled Prime, gives marketplace merchants the ability to flag their products as eligible for Prime two-day delivery. Before the Seller Fulfilled Program, this 2-day feature was only available to products shipped directly from an Amazon warehouse.
As 2015 came to a close, Amazon reported that sellers flagged 500,000 marketplace SKUs as Prime eligible. But why is this so important? Simply put, Amazon shoppers like seeing products that are eligible for 2-day delivery, so, if you can show your product as Prime eligible, chances are you’ll sell more of that product.
In fact, Prime shoppers (who pay an annual fee to gain access to 2-day shipping) are more likely to shop from Amazon (they spend roughly $1,200 each year on Amazon, vs. non-Prime members, who spend roughly $700) in order to see some type of value in their yearly subscription.
Prime Shipping Is Key For Sellers, But Don’t Overshoot The Moon
Amazon is very protective of its Prime 2-day offering, which is why for so long the ecommerce giant only allowed products stored in its own warehouses to be eligible. With complete oversight of the shipping process, Amazon could guarantee their promise of 2-day shipping was fulfilled.
Now that a greater spectrum of merchants can join the fray (regardless of where their products are stored), Amazon needed to find a way to ensure its 2-day promise didn’t get watered down, so they’re keeping a close eye on how quickly marketplace orders are shipped. They require that merchants maintain certain standards and, it appears, they’ll allow products to maintain the Prime badge so long as a minimum of 98.5% of orders are shipped on time.
So protective is Amazon of its 2-day delivery promise that during the holiday season of 2015, it paused its Seller Fulfilled Prime program. That way it avoided upsetting Prime members as a result of what was sure to be missed or delayed orders during an extremely busy shipping time of the year.
How Do You Get In On This Amazon Seller Fulfilled Prime Program?
It’s nearly a guarantee that sellers who are accepted into this Seller Fulfilled Prime program will see an uptick in products sold. In order to become eligible, merchants have to first meet the requirements, and then can apply to participate.
Some of the requirements include:
- Sellers must be enrolled in Premium Shipping and must have fulfilled at least 30 Premium Shipping orders over the last 30 days
- Sellers must have a cancellation rate of less than 1% on Premium Shipping orders
- Sellers must have an on-time delivery rate of at least 96% for Premium Shipping orders
There are a few more requirements you have to meet before you’re even eligible, but once eligible, we strongly encourage all merchants to apply. The benefits of having products flagged as Prime are nearly countless, which is why OperationROI can work with you to get your account in good standing with Amazon.
We’ll help you meet all of Amazon’s requirements, and will then help you apply to be considered. Once accepted into the program, we can help manage your Prime products and develop a strategy to ensure you never lose that coveted Prime badge on any of your products.