Amazon Seller Fulfilled Prime: A New Opportunity for E-commerce Vendors

Amazon is set to redefine the e-commerce landscape once again—starting October 1st, the company will accept new applicants for its revamped Seller Fulfilled Prime (SFP) program. If you’ve been contemplating entering the extensive Amazon marketplace, this could be your ideal moment.
As a seller, you’re likely aware that Amazon possesses immense potential for your business. According to Amazon’s 2022 annual report, third-party sales reached an impressive $117 billion. Becoming part of this marketplace can significantly enhance your visibility, and having the Prime badge on your products may considerably boost your conversion rates. However, the effectiveness of this badge is not guaranteed.
Before proceeding, it’s essential to consider: “Is Amazon SFP the right fit for my business?”
This guide explores the details of the Seller Fulfilled Prime program, preparing you to determine if it’s the ticket to elevating your sales in 2023. We examine the fundamental aspects of SFP, its advantages, and disadvantages, and how it may align with your business objectives.
Understanding Amazon Seller-Fulfilled Prime
Amazon’s Seller Fulfilled Prime (SFP) program allows eligible sellers to offer their products on Amazon Prime while fulfilling orders from their own warehouse or through third-party logistics (3PL). By participating in SFP, sellers can display the Prime badge on their products, signifying eligibility for fast and free shipping options, including one- and two-day delivery.
Initially launched in 2015 as an alternative to the Fulfillment by Amazon (FBA) program, SFP sought to enhance product availability for Prime members while giving sellers more control over the fulfillment process. However, due to declining service quality from an influx of participants, enrollment was paused around 2020. With a new set of guidelines launched in 2023, SFP enrollment is reopening this October.
This prompts a critical inquiry for any vendor: “Is the Seller Fulfilled Prime program beneficial for my business?”
The answer varies.
Before diving deeper, it’s essential to understand how SFP differs from other Amazon fulfillment options.
Comparing Fulfillment Options: FBA, MFN, and SFP
As sellers join Amazon, they must decide on their fulfillment approach: use Amazon’s services or manage it independently.
Fulfillment by Amazon (FBA) allows sellers to store products in Amazon’s warehouses, where Amazon handles picking, packing, and shipping, as well as returns and customer support. Products fulfilled this way carry the Prime badge, but come with storage and service fees.
Merchant Fulfilled Network (MFN) or Fulfilled By Merchant (FBM) gives sellers the autonomy to list products on Amazon and handle shipping directly. This means fulfilling orders themselves, managing customer service, and determining pricing and shipping strategies.
Seller Fulfilled Prime (SFP) combines aspects of both FBA and FBM. Sellers can fulfill orders independently or using 3PL while enjoying the Prime badge and its associated benefits, but this comes with strict requirements.
While SFP offers lower fees than FBA, it also imposes rigorous criteria that may be more demanding than FBM.

Advantages of Seller Fulfilled Prime
In a competitive online marketplace with around 2.5 million retailers in the U.S., gaining visibility is crucial. Joining SFP can significantly amplify your success for several reasons:
Access to Prime Members: SFP allows you to reach Amazon’s loyal Prime members, who tend to spend significantly more than non-members—often up to three times more—making them a valuable target audience.
Trustworthy Prime Badge: Having the Prime badge can boost conversion rates by 20-25%. Customers associate this badge with quality and reliability, making it a powerful selling tool.
Enhanced Customer Experience: The promise of free delivery appeals to many shoppers. With SFP, you can leverage this messaging, improving customer satisfaction and encouraging repeat business.
Increased Brand Visibility: Participating in SFP enhances brand recognition, as Amazon reports that 75% of shoppers utilize its marketplace to discover new brands.
Cost Savings and Inventory Control: Sellers can avoid high storage fees associated with FBA by managing their logistics more effectively, particularly for unpredictable or seasonal products.
However, there are also several potential downsides to consider before joining SFP.
Disadvantages of Joining Seller Fulfilled Prime
Here are some challenges based on feedback from current SFP participants:
Stringent Performance Metrics: Amazon’s rigorous standards for maintaining SFP status may pose challenges, particularly for smaller sellers or those new to the platform.
National Shipping Costs: With the removal of regional delivery options, sellers must manage nationwide shipping, which can involve significant costs, especially for businesses without established coast-to-coast logistics.
Variable Delivery Requirements: Amazon can alter its delivery requirements quarterly, often with short notice.
Is Amazon Seller Fulfilled Prime Worth It?
Determining whether to enroll in the Seller Fulfilled Prime (SFP) program is an important choice that could significantly impact your Amazon business trajectory. The answer to whether it’s a worthwhile investment isn’t a simple “yes or no” — it hinges on various factors, such as your product types, business scale, and profit margins.
In this section, we explore the critical elements that can help you assess if SFP aligns with your business objectives:
Product Offering
The nature of your products plays a key role in determining if the SFP program is suitable for you. Amazon indicates that SFP is most beneficial for sellers who offer:
- High-Value Items: Products with a higher price point that can accommodate potentially elevated shipping costs.
- Goods with Unpredictable or Seasonal Demand: Items that see fluctuating demand, making management of inventory levels challenging within FBA.
- Variations of Items: Products available in different sizes, colors, or styles, which could benefit from the more hands-on inventory control provided by SFP.
- Slow-Moving Products: Items with a longer sales cycle that can help avoid the high storage expenses tied to FBA.
- Special Handling Requirements: Products needing specific handling or preparation, allowing for greater control during fulfillment.
In our experience, various factors influence the feasibility of SFP for vendors. Brands dealing with larger items, such as furniture or equipment, often find it easier to meet the delivery demands and associated costs of the SFP program.
Business Size
The scale of your business also affects your ability to participate in SFP. Larger enterprises with established logistics and fulfillment frameworks are generally better equipped to meet SFP’s stringent requirements compared to smaller or newer businesses. Additionally, having reliable relationships with a competent third-party logistics provider (3PL) that can adapt to your needs and maintain high customer service standards is beneficial.
Profitability
Profitability is a vital consideration when assessing the SFP program. While potential savings on FBA storage fees and greater inventory control could enhance profit margins, it’s crucial to accurately assess shipping expenses and other related costs to determine if the program is financially advantageous for your operation.
If Seller Fulfilled Prime still appears to be a promising option for your business, it’s time to explore the requirements and next steps for joining the program.
How to Enroll in Seller Fulfilled Prime
With an understanding of the 2025 requirements for Seller Fulfilled Prime (SFP), it’s time to explore the enrollment process. Here’s a step-by-step guide to help you navigate your way into the SFP program:
Join the SFP Waitlist: Begin by signing up for the SFP waitlist on Amazon Seller Central.
Qualify for SFP: Ensure you meet the pre-qualification criteria and successfully complete the trial period.
Pre-Qualification Criteria: Before starting the SFP trial, verify that you have a domestic U.S. shipping address and a professional selling account. You’ll also need to demonstrate compliance with the following standards over the past three months:
- Self-fulfill at least 100 deliveries.
- Maintain a cancellation rate below 2.5%.
- Achieve a valid tracking rate of over 95%.
- Ensure less than 4% of shipments are delivered late.
Complete the SFP Trial Period: If you meet the pre-qualification requirements, you can register for the official 30-day trial period, which involves shipping at least 100 Prime packages. Successful completion of this trial will lead to automatic enrollment in Seller Fulfilled Prime.
Inventory Management and Order Processing: Store your inventory in your own warehouse and manage order processing independently, using shipping labels from approved carriers.
Fast Order Fulfillment: Ensure that you pick, pack, and ship orders on the same day to adhere to rapid delivery targets.
Meet Delivery Commitments: Make certain that orders are collected and delivered within one or two days to satisfy Amazon’s delivery expectations.
If you fail to meet the SFP requirements, it’s not the end of the line. Amazon has a three-strike policy that starts with a notification email, followed by a temporary pause on your Prime listings, and ultimately, removal from the program if compliance isn’t achieved.
For more details on joining the SFP program, you can visit the official Seller Fulfilled Prime page or the upcoming changes section in Seller Central.