Amazon Seller Fulfilled Prime
Prime members can benefit from a range of benefits, including unlimited one day delivery on qualifying items. Prime products are more visible, thanks to search features and are more likely to win the Buy Box than non-Prime items.
There are now two ways to qualify for Amazon Prime, Fulfilment By Amazon (FBA) and Seller Fulfilled Prime.
What is Seller Fulfilled Prime?
Seller Fulfilled Prime allows retailers to sell on Amazon Prime, without having to use Fulfilment By Amazon. Your products will have the Amazon Prime badge on them, but the retailer will handle the fulfilment, customer service and returns, as they would with a traditional seller-fulfilled order.
What is the Cost of Seller Fulfilled Prime?
You’re probably thinking, “This is great, the advantages of FBA, without the huge fulfilment and storage fees”. While this may be true, you will have to offer next day delivery on your items for free. (https://services.amazon.co.uk/services/seller-fulfilled-prime/how-it-works.html). This can become very expensive for a retailer and can eat away at your margins.
As well as the cost of next day delivery, you will have to store, pick and pack your inventory yourself. This will mean owning your own warehouse, employing and training staff. All orders on Seller Fulfilled Prime must be shipped the same day, so an efficient inventory process is essential.
Black Friday and Amazon Prime Day
Having all of your inventory in your own warehouse means that you have full control of it. There is no sharing of inventory between your own warehouse and Amazon’s distribution centres. This makes life easier, if you sell multi-channel.
For events such as Black Friday and Amazon Prime Day, there will be no limit on how much you can sell as there would be with FBA. If you are using Seller Fulfilled Prime, all of your products can be sold meaning you can really benefit from these sales events.
Customer Service and Returns
If you sell your products via FBA, Amazon handles not only the distribution and storage of your products, but also returns and customer service. This can save you time and hassle and can be extremely important for smaller businesses with fewer staff.
With Seller Fulfilled Prime, this is different. You will have to handle your own customer service and returns. This means you will need qualified staff to handle these issues, adding cost to your business. On the other hand you will have tighter control over your stock and your communications with customers.
Should I use FBA or Seller Fulfilled Prime?
Both FBA and Seller Fulfilled prime have benefits and disadvantages and these will be different for every company. If you are interested in finding out more about Seller Fulfilled Prime, all of the details can be found at: https://services.amazon.co.uk/services/seller-fulfilled-prime/how-it-works.html
For more information about how Clarity E-Commerce Translation can help you with your business, please contact us.