SFP

 SFP bridges the gap between Fulfilment by Amazon (FBA) and Fulfilment by Merchant (FBM) by giving high-performing sellers the ability to maintain Prime-level delivery speed and customer satisfaction without using Amazon’s fulfilment centres.
To qualify, sellers must prove their ability to meet Amazon’s stringent SLAs (Service Level Agreements) and pass an onboarding trial period.

How SFP Works:

1. Seller Control:
   • The seller stores, picks, packs, and ships products from their own warehouse.
   • All orders must meet Prime delivery standards (1–2 days).
2. Amazon Oversight:
   • Amazon monitors delivery times, cancellation rates, and on-time performance.
   • SFP sellers must use Amazon-approved carriers and purchase shipping labels via Amazon’s Buy Shipping service.
3. Customer Experience:
   • Buyers enjoy the same benefits as FBA: fast shipping, Prime eligibility, and Amazon-backed customer service.

Key Eligibility Requirements:

• Maintain on-time shipment rate ≥ 99%.
• Maintain cancellation rate ≤ 0.5%.
• Use Amazon Buy Shipping for at least 99% of orders.
• Offer same-day dispatch for orders placed before the cut-off time.
• Provide weekend delivery and pick-up in certain regions.

Benefits for Sellers:

• Prime access: Earns the Prime badge, increasing visibility and conversion.
• Inventory control: Full management of stock, packaging, and branding.
• Cost efficiency: Avoids FBA storage and fulfilment fees for large or bulky items.
• Flexibility: Ability to integrate with existing warehouse systems.

Benefits for Amazon:

• Network expansion: Extends Prime coverage without new fulfilment centres.
• Customer satisfaction: Maintains fast, reliable delivery standards.
• Operational efficiency: Reduces congestion in FBA warehouses.

Challenges:

• Stringent SLAs: Failure to maintain metrics can lead to programme suspension.
• Limited eligibility: Only experienced, operationally strong sellers can qualify.
• Shipping costs: Sellers bear the full cost of meeting 1–2-day delivery promises.
• System integration: Requires robust warehouse management and carrier tracking systems.

Why It Matters:
SFP allows Amazon to expand its Prime network while giving sellers more control and flexibility.
For sellers, it provides the conversion benefits of Prime without surrendering inventory management to Amazon.

Example:
A home décor seller operating its own warehouse in Germany joins SFP.
By using Amazon-approved carriers and same-day dispatch, the seller offers 1-day Prime delivery to customers - achieving a 20% boost in conversion compared to non-Prime listings.

In short:
SFP (Seller Fulfilled Prime) enables sellers to deliver Prime-level service from their own facilities - combining the visibility and conversion benefits of Prime with full control over inventory and fulfilment operations.