Amazon now allows sellers to fulfil some Amazon Prime orders as a variation on the Merchant Fulfilled Network program (also known as MFN Prime or Seller Fulfilled Prime.) This means if you are a fast-shipping vendor, you can increase sales of Prime-eligible merchandise while leveraging your own inventory and fulfillment investments. How much of an impact can this make? Internet Retailer notes that Prime buyers spend on average $500 more per year, compared to regular Amazon buyers. They also found that one company, Quick Candles, saw a 20% increase in sales of items newly marked Amazon Prime after their SFP program launched.
While Seller Fulfilled Prime can be a great way to increase order volume and overall revenue, there are several steps you need to take to make sure you are ready.
- You need to be aware of some of the challenges of the SFP program, which include strict on-time shipping requirements (e.g. 98.5%), the requirement to purchase parcel shipping services through Amazon, and the need for fast status updates as shipments are completed.
- You need to make sure your shipping software supports Seller Fulfilled Prime. With a new Pacejet integration via Amazon Marketplace Web Service, we can provide shipping integration between your ERP and Amazon to make fulfillment and compliance faster, easier, and more automated. We've been working with customers on this new program and you can learn more about the experience of SoTel Systems below.