

Shipping information must be purchased through Amazon’s Buy Shipping Tool, which means you have to log into Amazon to generate and print shipping labels. SFP adds another logistical layer as well. This can eat away at your margins and possibly result in a negative sale if you’re not careful. You use the Amazon Prime brand name and shipping rules, but it’s up to you to pick, pack and ship to your customers.Ī big difference between having items fulfilled by Amazon and using SFP is that you have to pay for shipping. Customers will purchase through Amazon Prime as usual, but your company ships the items directly with no intervention from Amazon. Amazon then picks, packs and ships the items to your customers, and takes the complexity out of the fulfillment process. You send a portion of your inventory to Amazon’s fulfillment centers, where it’s stored until a customer decides to buy it. The most striking difference between FBA and SFP is the way your items are fulfilled.Īs the name suggests, FBA means your inventory is completely fulfilled by Amazon. To help you determine which program may be best for your business, here are five key differences between the programs. FBA and SFP are fundamentally very different, and each one has features that appeal to certain businesses depending on size, profitability and aspirations.

While both programs allow you to sell on Amazon Prime, that’s about where the similarities end. Today we’re going to look at the two programs that give you access to those lucrative Prime shelves: Fulfilled by Amazon (FBA) and Seller Fulfilled Prime (SFP). In fact, with 200 million Prime members worldwide spending an average of $1,400 a year - compared to the $600-per-year average spent by non-members - the Prime subscriber pool clearly offers significant opportunity to reach ready-to-spend buyers. The marketplace giant’s Prime program plays a starring role in day-to-day operations of brands and retailers of all shapes and sizes. More specifically, the benefits of selling on Amazon Prime cannot be ignored. The critical importance of selling on Amazon is difficult to overstate.
