How you fulfil orders to shoppers on Amazon is an important business decision and one that will impact margin, customer service, demand, Buy Box ownership, international availability, Prime eligibility, storage, and inventory management.
Getting this right is a critical part of retail readiness to ensure product lines are set up for success and to cope with potentially great demand while reducing erosion of costs.
Prime – brands selling via Vendor will automatically gain Prime status.
Sellers leveraging FBA (Fulfilled by Amazon) also gain the Prime badge on listings because Amazon is confident of meeting fast delivery promises.
In addition, Amazon allows shoppers to filter for Prime-only items. Although we have seen sellers deliver great results without the Prime badge, we advise that, if possible, it's worth striving to secure because it is a sales enhancer, especially as Prime membership grows.
Many new sellers on Amazon are unaware that Amazon owns the Buy Box Detail Page; even if you have spent time curating content and imagery, any 3rd party seller can attach to the page if they have the same product. As such, the Buy Box is critical to sales, and any item that carries the promise of fast delivery or Prime is more likely to win the Buy Box.
For those wishing to leverage direct fulfilment through their own network, SFP (Seller Fulfilled Prime) can – as long as you meet Amazon's fast delivery parameters and any region-specific courier partner requirements.
But, Remember Customer Support– Sellers own the communications with the buyer, including delivery issues and returns should they wish to fulfil directly. You must factor in having someone to liaise with customer queries and respond to customers within 24hrs.
Learn more about your fulfilment options and benefits here.
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