The more effort you put into earning the Prime badge, the more you will sell! Keep reading to learn about how to become an Amazon Prime seller.
Amazon Prime has had great success due to its customer-centric approach.
The way it works is quite simple: subscribers buy products with positive ratings, fast shipping, high sales and fair pricing, and Amazon delivers just that. It’s no wonder the Prime program has over 126 million members just in the US.
Sellers can greatly benefit from Amazon Prime, but getting the Prime badge is no easy task. Luckily, we’re here to show you how you can be part of this much-vaunted program.
In this post we’ll tell you how to become a fully-fledged Amazon Prime seller. Let’s dive right in!
Amazon Prime – An Overview
Prime is Amazon’s monthly subscription service. It is available to all shoppers by paying a $119 annual fee. Monthly memberships cost $12.99 per month.
This is one of the most successful Amazon Programs, and it just keeps growing. 64% of free Prime trial users convert to paid members. Plus, Amazon Prime has a 93% subscriber retention rate after the first year, and a 98% retention after two years.
Subscribers spend more annually, shop more frequently, and spend more time on the marketplace. This is because prime tackles shipping costs and gives subscribers the ability to find products quickly.
Prime subscribers also get streaming content, Prime Day, and Whole Foods discounts. In return, customers make the most of their shopping, and remain loyal to Prime brands.
It’s also a bargain for sellers. Amazon Prime products receive higher search rankings. It also increases the changes to win the Buy Box.
The Prime Badge
Customers can spot Prime sellers thanks to the Amazon Prime badge.
Amazon’s badges are hallmarks for shoppers to find the best items on the marketplace. There are 3 badges that may appear on a product detail page:
- Amazon’s Choice – Features high-rated and well-priced items.
- Best Seller – Points out the products with high-sales rank.
- Prime – Marks out Amazon Prime-eligible products.
Many Prime members will only buy items that showcase the Amazon Prime badge. That means that being a Prime seller will increase youth customer conversions and sales on Amazon.
The question for sellers is: how can you earn the Prime badge and enjoy all the Amazon Prime benefits? Simple, you’ve got to enroll in Seller Fulfilled Prime.
Sources: Jungle Scout and WebRetailer
What is Amazon Seller Fulfilled Prime
Amazon Seller Fulfilled Prime (SFP) was born to relieve Amazon’s maxed-out warehouses. At the same time, the program makes sure enrolled sellers meet the retail giant’s high shipping standards.
SFP sellers handle their own fulfillment and shipping. The great perk is that they have access to Prime shipping, and therefore receive the Prime badge.
When enrolled in Seller Fulfilled Prime, you can tag products with the Prime label and ship them directly from your own warehouse. Here, we enlist some of SFP’s benefits:
- Access to the Prime customer base
- Control over inventory and fulfillment
- Enjoy the same Buy Box perks as FBA sellers.
- No FBA long-term storage or handling fees.
- Better control over refunds and returns.
- Bulky or heavy items don’t have to be shipped twice (first to Amazon, then to the customer).
- Sell products that are ineligible for FBA or need special storage requirements.
- Use of multiple fulfillment methods.
Amazon itself states that Seller Fulfilled Prime is best suited for high-value items, or those with many variations. SFP is also ideal for seasonal products, or items with fluctuating demand.
If you think you fill the bill, then you should consider joining SFP and getting the Prime badge. But first, let’s see what it takes to enroll in the program.
Other Paths to Amazon Prime
Seller Fulfilled Prime is not the only way to get the Prime badge benefits. There’s two other ways to earn it.
1. Vendor Central is an invitation-only program for established manufacturers. Vendors do not sell directly to shoppers. They act as Amazon’s wholesale suppliers, and there’s much to gain from this setup:
- Listings are labeled “Ships from and sold by Amazon”, which may boost trust.
- All products sold by vendors have the prime badge
- Amazon also deals with storage, shipping, customer service and returns.
2. Fulfillment by Amazon (FBA)guarantees your stock will be eligible for Amazon Prime. Plus, FBA sellers also get better ratings, thanks to Amazon’s guarantee.
FBA simplifies shipping, reduces fees and optimizes delivery rates. It is also a better option when expecting many sales.
Each seller has different goals, so one program might be better suited to run your Prime sales than the other.
Pre-Trial Considerations
Amazon Prime is certainly an opportunity for growth. However, you should consider your brand’s capabilities before joining the program.
For example, the more inventory and the less automation you have, the greater the burden.
The shipping and return costs fall onto your brand. Besides, you may need to keep warehouses across the US to deliver one-day or two-day deliveries, and still make a profit.
Don’t forget about the processing, either. You need to hand over ready-to-ship products on the same day the order comes in.
Two-day shipping must be on the shipper’s hands before 4:00 PM, and same-day orders by 1:00 PM.
Customer service can also be a costly burden. You must give Prime subscribers stellar attention. If you don’t have the capacity to meet high-volume services, you may have to find an outsourced ally.
Review your business’s core strengths to determine which program is best for you to enroll in Amazon Prime.
How to Join Seller Fulfilled Prime
SFP has very strict standards for sellers. For starters, Seller Fulfilled Prime has a waiting list. But you can use that time to get everything in order while you get accepted into the trial period.
Make sure you have available stock to fulfill your Prime orders. Also, research and pick your Amazon’s approved shipping partners to find the best fit you.
You must also be eligible for Premium Shipping. There’s a 30-day item eligibility period. The requisites are:
- 92% on-time order delivery rate
- 94% valid tracking ID
- Less than 1.5% cancellation rate
Amazon must be convinced that you can give amazing customer service and fulfill your orders efficiently. So, when you are a premium seller and out of the waiting list, you will go into the SFP trial period.
The trial lasts from 5 to 90 days. The requirements for Seller fulfilled prime are the following:
- Commit to two-day deliveries, at no extra fee to the customers.
- Your standard-size products must have nationwide delivery coverage.
- It’s crucial to use Amazon-approved shipping businesses, with weekend-supported shipping methods.
- Accept and comply with the Amazon Returns Policy.
- Let Amazon handle all customer service inquiries.
- The program also requires you to have a track record (99%) of on-time distribution.
- Your cancellation rate must be less than 0.5%.
Sellers have to meet the performance requirements on at least 200 Prime trial orders. Anything less and you will have to try again.
If sellers fail to meet SFP standards, Amazon will send them guidance on how to improve their practices, so they can reapply later.
Improving Your SFP Performance
Here are some tips you improve your SFP performance, even when you are still on the trial period:
- Assign Prime templates to your fastest moving products so you fulfill orders fast.
- Add as many ASINs as possible to the SPF trial without increasing shipping costs.
- Link your carrier accounts to your items to leverage volume discounts with SFP.
- Track your performance metrics every day to ensure that you are complying with the program.
- Place your high-selling products on a national Prime template, and put your low-selling items on a regional Prime template.
Once you pass the trial, you will automatically join Seller Fulfilled Prime. Then, your ASINs will display the Prime badge.
Note: You will not display the Prime badge during the SFP trial. However, you must still handle your orders as a Prime seller during this period.
Sources: Feedvisor and JungleScout
Final Thoughts
Earning the Prime badge should be one of your main goals to connect with customers, reach a wider audience, and to boost your sales on Amazon.
Yes, you must have a 99% on-time delivery track record, and a less-than-1% cancellation rate to enroll. However, you will stand to make more sales for the following reasons:
- Gain access to a huge customer base.
- Members can find cheap, reliable products.
- You will have more incentive to lower costs.
- It will drive you to improve customer satisfaction.
- Products qualify for free two-day free shipping.
So, in a nutshell, the more effort you put into earning the blue label, the more you will sell!
