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Jana Pfeiffer December 22, 2020 3 Minutes
Categories: Ecommerce | Ecommerce Marketing | Logistics and fullfilment
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For a long time, Prime shipping was only possible through processing by Amazon itself (FBA). "Prime by Seller" now enables sellers to independently handle Prime shipping from their own warehouse, which means that sales increases of more than 100% can be expected. In order to be able to use the Amazon service profitably for one's business, "Prime by Seller" must be successfully applied for in a first step. For this purpose, Amazon has defined some requirements that sellers must fulfill:

What is "prime by vendor"?

"Prime by Seller" is the Prime shipping program that allows Amazon Sellers to ship goods from their own warehouse directly to national Prime customers. Those who switch their shipping method to Amazon Prime also increase the visibility of their products, as the Amazon algorithm displays products and offers better when they are shipped using Prime. This additionally increases sales. Moreover, the Prime service is a key element in winning the Amazon Buy Box.

Fulfillment by Amazon (FBA) vs. "Prime by Seller"

While Amazon FBA requires sellers to rely on Amazon for receiving their own goods, processing, and shipping to customers, sellers using Prime by Seller retain control over receiving and their shipping processes. Additionally, those who sell private label products do not have the ability to brand orders using FBA. With Prime by Seller, however, sellers can both brand the shipping box and include promotional materials with the order. Furthermore, Amazon's guidelines prohibit the building of email lists, for example to contact existing customers again. So if you want to build relationships with customers, you should go with Prime through Sellers.

Requirements to be able to use "Prime by Seller

Offer Prime shipping benefits

Sellers who want to qualify for Prime by Seller must offer Amazon Prime members the usual Prime shipping benefits. This means that sellers must guarantee customers free premium shipping within one day, as well as free standard shipping on all Prime items. On-time delivery of ordered goods to the customer must occur in 99% of orders to qualify for Prime through Sellers. In addition, the cancellation rate for Prime orders must be less than 1%.

Purchase shipping labels through Seller Central

Shipping labels for orders containing at least one Prime item must be purchased through Seller Central or an adequate integration service provider.

Delivery via Amazon-assisted carriers

Delivery of Prime orders to the customer must also be made using carriers that are supported by Amazon. For this, the seller may face increased costs compared to other carriers not supported by Amazon.

Successful completion of the test phase

In addition, before qualifying for Prime by Seller, the merchant must complete a trial period in which the merchant must prove that it meets the high standards of Prime shipping. However, items shipped during this test phase will not yet carry the Prime logo. Only after a seller successfully completes the trial phase will it be enabled for Prime by sellers and the Prime logo will be visible to customers. During this trial period, the above requirements must be met for 50 valid Prime trial orders. The trial period lasts between 5 and 90 days, depending on when Seller meets the performance requirements. If the trial period is not successfully completed within 90 days, the trial period will automatically reset and Sellers will have to start again.

After successful completion of the Prime test phase

24 hours after a seller becomes eligible for the Prime by Seller program, customers will automatically see the Prime logo for the Prime templates of the SKUs assigned to the seller.

Conclusion

If a seller wants to handle its Prime shipping itself, it has the option of "Prime by Seller". In order to be able to use the Amazon service profitably for his company, "Prime by Seller" must be successfully applied for in a first step. For this purpose, Amazon has defined four requirements that sellers must fulfill: They must offer their customers Prime shipping benefits, purchase shipping labels via Seller Central, deliver to the customer using carriers supported by Amazon, and successfully complete a test phase. 

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