Everything you need to know about Amazon Seller Fulfilled Prime
In January, Amazon announced they will extend the Prime benefits to sellers who ship and store their own inventory via their Amazon Seller Fulfilled Prime Program.
This is an exciting time for both buyers and sellers who have a stake in Amazon’s highly popular and highly successful delivery service today.
The goal behind The goal of Amazon Seller Fulfilled Prime program is to offer “Prime” shipping privileges to
Amazon sellers who have demonstrated their capability to fulfill orders from merchants and have Amazon’s highest level of performance (through FBA).
How Will Amazon Sellers Fulfilled Prime Impact Merchants?
1. Avoid Split Inventory
Alongside Prime eligibility and free shipping for two days Another important benefit of the program can help retailers avoid needing to break their inventory.
In the past sellers had to decide the items that would be shipped via Amazon Fulfillment Centers and the rest were offered on the seller’s site and other platforms.
This kind of decision-making was a source of confusion for sellers, as it’s difficult to identify which products fall under FBA.
Sellers can now avoid having to divide or dice up their stock across FBA as well as other channels (if they decide to do so.)
2. Easier Return Handling
In the past in the area of returns, FBA sellers have faced several issues.
This has resulted in an increase in fraud by customers in FBA. With the Amazon Seller Fulfillment Prime sellers are able to directly manage returns on Prime purchases.
We anticipate this will allow sellers to trace and recognize the returns of their products.
3. Benefits Merchants with Large / Heavy Products
Previously, sellers were required to pay for shipping their products from their premises or place of business in the past to the Amazon fulfillment center.
With Seller Fulfilled Prime sellers don’t need to pay an additional cost and can now ship the product directly to customers.
It also helps the customer. As merchants can save on shipping costs they are able to sell their customers with the product at a lower cost (or improve their margins).
4. Reduce Cost For Building New Amazon Fulfillment Centers
In allowing sellers to manage their own deliveries This will cut down on the cost and effort for the construction of new fulfillment centers.
Due to the growing popularity of Prime both for retailers and consumers, Amazon cannot build these centers fast enough to meet the demand.
By allowing merchants Prime eligibility through their own infrastructures–this helps to alleviate the pressure for Amazon to expand and invest in their own fulfillment warehouses
Final Takeaways
Amazon Fulfillment impacts your margin for specific products and, in turn, reduces profit. But, given the rise of
total sales in addition to exposure FBA will likely be an excellent option for an online store.
In this case, you might earn less overall from one particular item, such as the phone charger, however you will
likely sell more chargers for phones overall and make a bigger profit overall.
FBA might not be an option for your store based on the competition that surrounds your products, the products you sell, the location your business is situated as well as your margins and other factors.
