Understanding the Difference Between Seller Fulfilled Prime and Premium Shipping on Amazon

As an Amazon seller, you have access to a range of fulfillment options to cater to the diverse needs of your customers. Two popular choices (which are frequently confused) are Seller Fulfilled Prime (SFP) and Premium Shipping. In this article, I will be presenting you the details of each program, explaining their differences, benefits, and how they can impact your business on Amazon.

Seller Fulfilled Prime

Seller Fulfilled Prime is the Prime program that allows you to deliver directly to domestic Prime customers from your own warehouse. By displaying the Prime badge, you are committing to fulfill orders with One-Day and Two-Day Delivery at no additional charge for Prime customers. Amazon gives you access to the right transportation solutions to help you meet the high bar for the Prime customer experience.

Please note, that the customer service for all Seller Fulfilled Prime orders is handled by Amazon, which makes it similar to FBA. However, this also means that your buyers will be provided with a very generous return policy, which includes hassle-free returns, full refunds and extra credits.

Unlike Premium Shipping, Seller Fulfilled Prime requires you to offer free shipping.

Before enrolling in Seller Fulfilled Prime, you must complete a trial period to show that you are able to meet the requirements for Prime fulfillment excellence and customer satisfaction. The Prime badge will not be displayed on items enrolled in Seller Fulfilled Prime during the trial period, however you must process the orders with a zero-day handling time. Once you successfully complete the trial period, you will automatically be enrolled in Seller Fulfilled Prime and your enrolled ASINs will be eligible to display the Prime badge to customers.

Here is the full list of requirements for Seller Fulfilled Prime:

• Offer Premium Shipping Options
• Ship over 99% of your orders on time
• Have an order cancellation rate of less than 0.5%
• Use Amazon Buy Shipping Services for at least 99% of orders
• Have nationwide delivery coverage for all standard-size products
• Use ship methods that support weekend delivery and pick up (Saturday or Sunday)
• Meet targets for 1-day and 2-day delivery promises
• Deliver orders with our supported Seller Fulfilled Prime carriers
• Seller must agree to the Amazon Returns Policy
• Allow for all customer service inquiries to be dealt with by Amazon

Premium Shipping Options

Premium Shipping is a program that allows sellers to offer expedited delivery options to customers without being enrolled in Seller Fulfilled Prime. It offers an alternative for sellers who prioritize fast shipping but may not meet the stringent requirements of SFP.

With Premium Shipping, you can set your own postal charges for each shipping option, such as Next Day, Second Day.

You will be able to manage all customer service yourself and no refunds or credits will be issued by Amazon’s Customer Service on your behalf.

To offer Premium Shipping options, sellers are required to:

• Have sold on Amazon for 90 days or more
• Ship ten or more orders in the last 30 days
• Maintain an on-time delivery rate of 97% or greater for all Premium Shipping option orders
• Maintain a valid tracking rate of 100% for all Premium Shipping option orders
• Maintain a cancellation rate of 0.5% or less for all Premium Shipping option orders

In case that you fail to meet the Premium Shipping Eligibility metrics, you will be able to submit an appeal by e-mailing op-pso-vtr-appeals@amazon.com. Alternatively, they will be reactivated automatically after 90 days, once your metrics clear.

I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can assist you and help you resolve the matter.

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Additionally, here you can watch my YouTube video, where I am addressing everything you need to know about Seller Identity Verification and how to pass it: