SELLER-FULFILLED PRIME
IS MORE RELEVANT THAN EVER
Today, the speed and convenience of Amazon Prime are a part of life, with more than
180 million subscribers in the U.S. and another 60 million worldwide. This means that
Amazon Prime is one of the largest paid retail membership programs ever.
You can capitalize on this hungry audience with a Prime badge, but it’s difficult to stand
out. Shifting to Seller-Fulfilled Prime (SFP) might be the secret to staying top of mind,
thanks to improved service and selection that turn curious shoppers into long-term buyers.
SFP enables Amazon sellers to display the Prime badge on their listings while fulfilling
orders themselves or through a third-party logistics (3PL) provider like VEYER. Unlike the
standard Fulfillment by Amazon (FBA) program, where you send your goods to Amazon’s
warehouses, SFP gives sellers like you full control over inventory and shipping, while still
offering customers free 1- to 2-day Prime delivery.
That creates a lot of opportunity for you to cut costs without losing quality.
After a long hiatus, Amazon recently reopened the SFP program with updated standards
to improve customer satisfaction. As a result, many eCommerce brands are now
reconsidering SFP. For mid-market brands navigating rising FBA fees and inflexible
fulfillment, SFP offers a path to performance and profitability without compromise.
You’re here because you want to capitalize on those opportunities but need a hand
understanding the complexity of Amazon’s SFP requirements and strict metrics.
Thankfully, you don’t have to do it alone. Our goal at VEYER is to facilitate a smooth and
sales-positive transition to SFP. No matter the route you take, we’re here to offer insights
into your choices as a business leader and lend a hand.
Amazon Will End FBA Prep in 2026
At the start of 2026, Amazon says it will stop offering prep and item labeling services
for U.S. shipments that rely on FBA. This covers labeling, bagging, stickering, bubblewrapping,
and other services designed to protect products and avoid damage in transit.
Incorrect labelling and prep could mean an order won’t be eligible for reimbursement
if damaged or deemed untraceable.
To meet Amazon’s demanding FBA requirements, the company says you’ll either need
to do this prep work yourself or hire a service provider. VEYER supports operations like
yours by doing this prep work to meet Amazon’s standards. We ca n help you maintain
FBA requirements and even explore if now is the right time to s witch to SFP.
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UNDERSTANDING THE
BUSINESS CASE FOR SFP
Why does the Prime badge matter
With millions of Prime members in the U.S., SFP lets you tap in to Amazon’s most loyal
and highest-spending customers. Displaying the badge alongside your products can
significantly boost conversion rates, with gains of between 20% and 25%, according
to multiple estimates. That’s because Prime members heavily favor listing with the
Prime badge, and these are hungry shoppers.
Hard numbers surrounding Amazon Prime can be elusive because the company doesn’t
confirm much and publishes even less. However, reliable conservative estimates suggest
that Prime members spend roughly twice as much as non-Prime customers each year.
Recently, that was just under $1,200 for Prime members and just under $600 per year
for non-Prime shoppers, according to Consumer Intelligence Research Partners.
Aside from increased visibility and sales, SFP offers numerous cost-saving and
operational benefits. You avoid Amazon’s FBA and storage fees entirely. For many
sellers, using a 3PL or in-house fulfillment can be more cost-effective than FBA,
especially when you have large volumes, unique goods, or items with special
handling requirements.
You also maintain control over the unboxing experience, allowing custom packaging or
inserts to enhance brand loyalty. Brands will have to do some of this work no matter
what in 2026 when Amazon stops offering FBA prep services. So, making the change to
handling everything gives you a leg up on other sellers, priming buyers to come back and
allowing you to advertise or offer deals.
When paired with a 3PL like VEYER,
SFP delivers enterprise-grade capabilities with the flexibility of a mid-market solution.
SFP also reduces the risk of inventory being stranded in Amazon ’s network, providing
you with more flexibility in product bundling and customization.
Potential Cost-Savings When Moving to SFP
Every business has a unique mix of SKUs, customer locations, and requirements for storage and fulfillment.
That means there is no blanket statement on how much you can save by making the switch, but it also means
there are plenty of opportunities. By partnering with a 3PL that has its own carrier relationships and different storage and pick-and-pack fees than Amazon, you can benefit like some of our partners,
who have cut shipping costs by more than 50%.
Many businesses report that moving to SFP helps them control their costs as well. They can either rely on
warehouse space they own or negotiate rates with a 3PL, such as VEYER, to avoid Amazon’s rising storage fees,
long-term storage add-on costs, or even inventory restrictions during peak seasons.
Fulfillment By Amazon can also introduce higher costs based on product types. There are higher FBA storage costs
related to oversized goods or heavy SKUs, and fulfillment costs may scale to unaffordable levels for some brands.
Moving to SFP may help companies control and reduce these costs while still delivering on the Prime one-day or
two-day delivery model. For many brands, one-day delivery can increase conversions by 20 to 30%, but slowing
down to a three-day window can drop conversions by more than 30%.
7 PRODUCT CATEGORIES WHERE
A SWITCH TO SFP MAKES SENSE
High-Value Electronics, Appliances,
Bags, Fitness Equipment, and More
- •Customize or control packaging so customers
have a branded unboxing experience. - •Brand reputation is crucial, and SFP allows you to
maintain much tighter control over inbound, storage,
how products are packed, and more. - •Greater inventory control and management to stock
at levels driven by customers and trends, such as
seasonality, which may be lower than Amazon’s
minimum requirements. - •Certain products, like TVs with screens 42 inches
or larger, may incur special handling fees.
Seasonal Fashion, Apparel and Footwear, Sporting Items, and Holiday Gifts
- • SFP can be more dynamic with volume and spikes, making it easier to control inventory costs when there is difficulty forecasting inventory needs.
- • A 3PL can offer more flexibility with staging goods to reduce order transit times when your busy season arrives.
- • Storage costs can spike during peak seasons, and you have fewer options to control this with FBA.
- • FBA may require higher inventory levels than your sales can maintain throughout the year.
- • Amazon can impose inventory restrictions in its warehouses during high-demand periods.
Regularly Returned Merchandise, Including Jewelry, Apparel, and Footwear
- • For apparel and shoes, Amazon charges returns processing fees for each customer-returned unit.
- • Fees can be high, such as an Amazon example of $2.19 for a large t-shirt.
- • Other product categories have returns processing fees after your returns hit a certain threshold, which varies by category.
- • High return rates can significantly impact profitability when you face these fees.
Slow-Moving Goods, Including Big-Ticket Items,
Durable Goods, High-End and Luxury Accessories
- •Products with low turnover often see significant
storage costs under FBA. - •Amazon imposes often higher storage fees, and a set
of long-term storage fees applies after six months. - •Inventory limits can be applied to companies with
slow moving goods, limiting your available catalog in FBA. - •SFP allows you to utilize your own warehouses or
shop around for a 3PL that has better long-term
storage rates.
Highly Customizable Goods like
Gift Sets, Cosmetics, and Foods
- •Access to inventory tools that can help utilize all
components to fill orders. - •Allow for customization and assembly at the
warehouse/3PL level. - •No longer need separate inventory for
each variation, as required by FBA. - •Ability to fill more total orders with available
inventory and SKUs. - •FBA inventory limits restrict the number
of variations you can offer.
Goods That Change Regularly, Like
Seasonal Fashion, Linens, and Supplements
- •Products whose sales drop off considerably
after a specific season or cycle. - •Goods you may not want to keep high inventory
counts for. - •Products with a limited shelf-life, where you may
want greater assurance from your fulfillment partner
that expired items aren’t sent to customers. - •SFP allows you to set tight inventory controls and
work with a 3PL to phase out product lines or
individual SKUs on your schedule.
Heavy, Bulky, or Oversized Sporting Goods,
Pet Foods and Supplies, and Luggage
- •Amazon has variable storage fees, and these can
be very costly for heavy, bulky, or oversized products. - •This category also tends to move slowly in many cases,
which could mean higher long-term storage fees related. - •Amazon sometimes limits available warehouse space
for brands, which may make it harder for oversized
goods to meet stock requirements for FBA. - •FBA fulfillment fees quickly scale when goods move into
Amazon’s ‘large bulky’ and ‘extra-large’ product categories.
Amazon offers some price calculators, and 3PLs like VEYER can help you price out SFP and FBA expenses based on your specific goods. You’ll want to ge t a comprehensive look at your expenses and remember that any partner will have expenses related to storage, processing, and fulfillment. You need to discover the right mix that keeps your goods moving and your margins safe.
SFP REQUIREMENTS:
WHAT AMAZON EXPECTS
To reap the benefits of Seller Fulfilled Prime, you’ll
need to meet some stringent requirements and
maintain them throughout the year. These can
be challenging for some small brands to manage
on their own, so it’s crucial that you assess your
systems and capabilities, or find a 3PL partner that
can effectively handle the demands. Missing the
mark not only upsets customers but can quickly
lead to losing Prime badges or even being removed
from the Prime program.
To pre-qualify for the program, you’ll need to:
- ☐ Have a domestic US address as your default shipping address.
- ☐ Have an Amazon Professional selling account.
- ☐ And for 90 days before enrolling in the trial:
- • Have shipped at least 100 seller-fulfilled packages.
- • Have a cancellation rate less than 2.5%.
- • Have a valid tracking rate greater than 95%.
- • Have a late shipment rate of less than 4%.
Once you hit these metrics, you can apply to take
part in the Seller Fulfilled Prime trial. During your
trial period, typically 30 days, you’ll need to fill at
least 100 Prime orders per month while hitting
these KPIs:
- • Offer nationwide 1- to 2-day shipping.
- • Achieve a minimum 93.5% on-time delivery rate (Amazon recommends maintaining 95% or higher).
- • Offering a valid tracking number on 99% of orders, using carriers integrated with Amazon.
- • Have a seller-initiated cancellation rate of less than or equal to 0.5%.
- • Have less than a 4% late shipment rate.
- • Support weekend pickup and delivery capabilities.
- • Ship Prime packages each week of the trial.
“At a Glance” Metrics:
Amazon also has delivery speed requirements for product pages. The delivery speed
metric (also called the “at a glance” metric) is a count of the number of Prime customer
page views where your offer was featured and the customer saw a delivery date of less
than or equal to 1 day or 2 days from when they looked at your product. For SFP, you’ll
need to maintain these minimums even during the trial period:
Amazon will provide you with strict dimensions for product size tiers.
Notably, the company has been quick to put companies on probation in the past if it believed they were misclassifying products to circumvent delivery speed and other requirements. Follow these guidelines as closely as possible when providing the dimensions of your products to Amazon and reporting your delivery speeds.
After your trial period, Amazon may impose more stringent requirements, typically in areas such as customer service, returns, and on-time delivery rates. These can change, as Amazon plans to update them more frequently compared to its older SFP operations from before the pandemic.
You’ll lose the badge for 30 days if your metrics slip below acceptable levels, and that can hit sales hard. Not only is it a sign of trouble with exist ing customers, but it also results in a loss of visibility, sales, and page performance, which may make it difficult to return to SFP status.
VEYER’s fulfillment network is already optimized for every SFP requirement, including same-day order handling, Amazon-compliant tracking, and weekend carrier service. Our 99.9% on-time shipping and 99.9% accuracy have proven that we can help sellers like you exceed expectations in Prime trials. We have a national infrastructure in place to meet Prime SLA thresholds without requiring you to overhaul any internal operations.
How Fulfillment Must Evolve Under SFP
Fulfilling Prime orders from your warehouse introduces performance expectations that exceed the standards most small e-commerce brands can meet. Amazon is strict, but that’s because of its customers.
Prime Members expect free, fast delivery nationwide. So, you must use carriers that can consistently meet transit times of 1–2 days. This typically means UPS, FedEx, or USPS Priority/Express (with no extra charge to the buyer).
And Prime shoppers want their orders quickly, no matter where they are. Amazon has upped its requirements for contiguous US coverage in recent years, so there’s no longer an option to be a “regional” SFP brand.
For your operations, that means having inventory across the US.
You’ll need a network of multiple warehouses to store goods and ship them.
Five core areas can make or break a successful SFP launch and operation:
multiple warehouses in different regions. This might involve your own distribution
centers, or more commonly, working with a 3PL that has a network of fulfillment
centers. VEYER has 40+ facilities across North America. We typically find that
having 4 to 7 locations provides reliability by having distribution nodes on both
coasts as well as the Midwest, Northeast, Northwest, and Southwest regions, based
on customer market density. The more locations you have, the closer customers
are to inventory, which speeds shipping.
seasonality. For example, having warehouses with access to rail networks can save
you money when restocking full container loads of movers, bulky pet foods, baby
strollers, or seasonal items with strong sales. Coastal distribution points provide
access to numerous large population centers, enabling goods to arrive via road
quickly and affordably. Keep in mind that promotions and holidays can significantly
impact this. Consider relying on a 3PL’s WMS system to help route inventory
automatically based on sales projections, like staging winter sporting goods near
your cold-climate customers.
Sunday pickups and sorts. Amazon’s SFP requirements specifically call for you
to receive, pack, and ship orders at least 6 days a week, while using shipping
services that provide delivery at least 6 days a week. While no 1 required, it’s highly
recommended to set up each carrier partner in Amazon’s “Buy Shipping” integration
so that the label/pickup data flows automatically and stay compliant with tracking
metrics. Buy Shipping is Amazon’s service that allows you to buy a shipping labels
directly through your Seller Central account, giving you automatic confirmation
of shipment and delivery of tracking information to the customer. This protects
against A-to-z Guarantee claims issues.
careful. Beyond having goods close to your customers, reducing the travel distance,
you can also shrink costs by utilizing a 3PL’s carrier contracts and volume discounts.
Many sellers rely on 3PLs due to these discounts and carriers giving them a
preference during periods of tight capacity, such as peak season.
have to handle the products that come back to you. That means checking for
issues, fixing things, restocking, and more. Return logistics can become complex as
you grow, and you will need a team or a capable partner to review returned items,
as well as verify that any destroyed inventory is properly documented for tax and
financial purposes.
With a 3PL like VEYER, these shifts don’t require internal investment.
Sellers get instant access to scalable, Amazon-compliant infrastructure. Operational reliability is built into the model, providing sellers with peace of mind that service won’t slip during high-volume periods.
OPTIMIZING YOUR WAREHOUSE NETWORK
STRATEGY: LOCATIONS AND COVERAGE
How many warehouses are enough?
That’s a core question that changes as you grow or your customer base shifts.
For mid-market sellers, the rule of thumb is to have at least two to three regional
distribution points, typically one on each coast and perhaps one in the central US.
That allows you to cover the country within 1–2 days without breaking the bank.
Having too few locations means you either won’t be able to reach them in time, or you’ll
eat rush fees that can kill already slim eCommerce margins. A single warehouse will
incur high fees for expedited delivery to the opposite coast or other far-flung locations.
And when people see your Amazon Prime badge, they know you’re offering fast and free delivery.
That’s why fulfillment partners offer multiple locations. Your inventory is stored closer to
key markets, allowing you to reach people quickly and save on shipping costs, while also
eliminating the need to lease your own space.
Getting it right means analyzing your sales distribution and adjusting accordingly.
- •
Distributing inventory based on order velocity
and geography. - •
Using real-time inventory balancing across nodes,
keeping each SKU in at least two regional locations. - •
Automating routing logic with a warehouse
management system. - • Reviewing coverage maps so that you have no blind spots.
to display (and meet) 1-day and 2-day shipping options
the majority of the time when people look at your goods.
Properly displaying this and making good on that offer
requires you to optimize warehouse distribution so that
products can easily make it to customers.
it is for rapid delivery, and the more times you can display a
1-day or 2-day shipping option on product pages.
while making it easier for you to meet SFP requirements.
VEYER’s 40+ fulfillment centers enable next-day delivery for 98.5% of the US population,
no matter your order volume.
This eliminates the need for sellers to lease space, hire staff, or manage their own multi-node network. Plus, you’ll get data and analytical support to understand how best to deploy and scale based on your products, customers, and order volume.
SFP IMPLEMENTATION PLAN:
FROM PREP TO PRIME BADGE
Becoming SFP-ready requires thoughtful planning. We recommend that you begin your
research and preparations now. Don’t delay the move until FBA becomes too expensive
or inefficient and starts costing you sales. Instead, take the proactive approach that gives
your goods an edge.
high volumes of sales, and can you meet those deadlines?
deeply into profit margins? How much do you expect to save by moving away from
FBA? A discussion with a 3PL like VEYER may help you determine both immediate
and long-term KPIs to consider, as well as gain insight into how costs rise as you grow.
struggling to meet 1-day and 2-day shipping demands already? Achieving SFP
status will mean you’ve increased at-a-glance views with more fast delivery coverage.
It’s important to understand if your existing fulfillment setup can meet future demand
or if you’ll need support as you convert more window shoppers into Prime buyers.
interest, work with your fulfillment team or a 3PL, such as VEYER, to set up accounts
and verify that all product dimensions are accurate. Integrate your systems and connect
Amazon Seller Central to the WMS, inventory tools, and other services you use.
To meet the fast-shipping time demands, you may need to move goods around
before the trial period begins. This is a good time to review both recent orders and
those from last year at this time.
requires you to independently process the first 100 Prime orders, and the company
typically expects zero delays in processing these orders. So, keep things quick and
rely on your Prime-eligible shipping methods. VEYER can handle this by monitoring
orders in real-time and organizing same-day shipments. After you complete the
initial steps, a Prime badge will be displayed for all your goods.
member or operations lead to review metrics and Amazon performance reports
weekly, or even daily. Consider adopting a dashboard that provides live updates on
shipments and exceptions. You want to be able to tackle issues like late shipments
or high cancellations as soon as they begin.
you’re performing against Amazon’s requirements. As you move into SFP,
anticipate that you’ll need more time to analyze fulfillment performance as sales
increase. Scaling typically introduces other challenges and changes, such as new
seasonality or even shifts in your core audience.
and an experienced onboarding team.
A dedicated support structure helps you maintain full visibility during every phase, from pilot to full deployment.
WHY A 3PL PARTNER MAKES
ALL THE DIFFERENCE
targets, and operational overload. A 3PL partner mitigates those risks by offering:
- • Coast-to-coast fulfillment from day one.
- • Pre-negotiated carrier rates and 7-day delivery support.
- • Seamless Amazon integration for Buy Shipping and returns.
- • Real-time exception resolution and performance alerts.
- • A full warehouse staff able to handle demand spikes, with no HR requirements on your side.
- • A strict SLA that helps you meet SFP requirements, without major cost overruns.
-
•
Performance guarantees for speed, accuracy, and more, which you use to win
customers and keep Amazon happy.
and eligible, even during peak. You don’t have to worry about carrier contracts, investing
in new tech, or trying to find new warehouse workers as you grow. A 3PL helps you
minimize your warehousing and fulfillment costs even as you scale.
Having a 3PL in your corner means that partner can flex and problem-solve, even when
the challenge or issue isn’t their fault. You’ve got backup when you need it. There’s no
reason to go it alone, especially when your sales volume is on the rise.
In many cases, SFP can be a substantial savings compared to FBA . While SFP introduces
carrier costs, it avoids common FBA surcharges and provides more storage flexibility.
The right 3PL partnership means you hold the inventory that’s right for your business,
in the places and methods you prefer. When managed effectively, the new total cost
per order under SFP should help improve your margins. VEYER hel ps sellers reduce
total fulfillment costs by optimizing carrier mix, eliminating or reducing charges such as
inventory storage overage fees , and aligning inventory levels with demand.
Understanding your potential savings requires a more detailed conversation. Reach
out to VEYER here (email or link) to learn more about our support for SFP and to get a
free assessment of your opportunities for improvement by leveraging our warehouse
distribution network.
The Prime Badge alone can boost sales by 20% to 30%.
Increasing warehouse locations and improving those 1-day
and 2-day glance views also make you more likely to win
the Buy Box and reduce cart abandonments. The Buy Box
is that coveted spot on a product page displaying the “Buy
Now” and “Add to Cart” buttons, and “winning” it means
Amazon selects you as the seller for these buttons instead
of any other brands that sell this product. Roughly 80% of
all sales on Amazon happen via these buttons.
MAINTAINING SALES
AND AVOIDING DISRUPTION
momentum. The goal as you move from FBA to SFP is to crawl (ana lysis and setting
up your logistics), walk (SFP trial period and adjustments), and run (SFP go-live and
maintenance). Using a hybrid fulfillment strategy—where some SKUs remain on FBA
while others shift to SFP—can help reduce risk as you move thro ugh these stages.
them with a portion of your inventory and a share of your order s. It’s a proven technique
to keep listings live and minimize any disruption to customers, which also helps keep
you Prime-eligible during the switch.
helps you avoid sales dips while scaling your SFP efforts. Common steps in this process include:
- • Phased rollouts by product type or volume.
- • Retaining top-selling SKUs in FBA during the transition.
- • Real-time performance monitoring with exception alerts.
- •
Specific changeover dates for top SKUs to avoid order or fulfillment disruptions
during busy seasons, such as peak.
ongoing, proactive support to mitigate risk and help
scale with confidence. That can come from your internal
teams and operational leads, or a 3PL partner can provide
it. Either way, you want coverage that helps you identify
high-priority ASINs for a staggered transition, while
using lower-volume items to test different inventory
distribution plans and locations.
Amazon appears to be both a more seller-friendly
approach with its recent updates that adjust on-time
delivery rate (OTDR) protections and. These are making
SFP more viable and could signal a good time to invest
in the Prime opportunity.
inventory control and overall operational security in
the event Amazon makes a significant change or the
supply chain faces a severe disruption.
costs significantly during peak
season, which can eat into your
margins significantly if you’re holding
a lot of inventory. Standard-size
goods rise from $0.78 per cubic foot
to $2.40 per cubic foot for October-
December. Oversized goods move
from $0.56 to $1.40 per cubic foot in
the same months.
Nearly tripling your storage rates
adds unnecessary pressure during
an already busy peak season. It
doesn’t have to be this way. Smart
partners like VEYER can help you
reduce your costs without sacrificing
that Prime badge.
sellers unlock revenue and customer loyalty while avoiding Amazon’s growing fees and restrictions.
adding operational complexity. You’ll be ready for the growth SFP promises while offering a customer
shipping experience that won’t disappoint.
- •Reach out, and VEYER can partner with you to: Evaluate your current fulfillment setup.
- •Create a warehouse and product distribution strategy for 1-day and 2-day speeds.
- •Start a pilot program using a subset of SKUs
SFP advisors to see how our warehouse network helps you stay in control of Prime without
compromising the customer experience.
Ready to take control of Prime?
Connect with VEYER to see how Seller Fulfilled Prime can work for your business.
