October 27, 2025
If you’re selling on Amazon and handling fulfillment yourself, you’ve probably noticed that coveted Prime badge on competitor listings. You know the one. It signals fast, free shipping to over 100 million Prime members, and it can boost your Amazon conversions by 25% on average.
For years, the only way to get that badge was through Fulfillment by Amazon (FBA). You send your inventory to Amazon’s warehouses, and they handle everything. It’s convenient, but it comes with hefty storage fees, limited control, and costs that can eat into your margins, especially during peak season when storage rates nearly triple.
But there’s another path: Seller-Fulfilled Prime. With SFP, you earn the Prime badge while maintaining control of your inventory and fulfillment process. You can avoid FBA’s escalating fees and keep your brand experience in your own hands. The catch? You need to meet Amazon’s strict performance standards. That’s where the right strategy and the right partner make all the difference.
What Is Seller-Fulfilled Prime and Why Does It Matter?
Seller-Fulfilled Prime allows you to display the Prime badge on your listings while shipping orders from your own fulfillment operation instead of Amazon’s warehouses. This is particularly valuable for sellers with oversized products, high inventory turnover, or those who want more control over their customer experience.
The challenge is meeting Amazon’s demanding delivery requirements. You need to provide 1-day and 2-day shipping to specific percentages of the country, maintain 99% or higher on-time performance, and process orders for same-day shipping. The requirements vary based on product size:
- Standard-size products: Reach at least 30% of the United States in 1 day or less and at least 70% in 2 days or less
- Oversized products: Reach 10% in 1 day and 45% in 2 days
- Extra-large products: Reach 15% of the country in under 2 days
For most growing brands, achieving this alone from a single location is nearly impossible. That’s where a Third-Party Logistics (3PL) partner plays an important role. A 3PL specializes in warehousing and fulfillment. They store your inventory across multiple locations, process orders as they come in, and ship them out with speed and accuracy. The right 3PL partner gives you the infrastructure to meet SFP requirements without the massive investment of building your own nationwide fulfillment network.
| Fulfillment Method | Storage Location | Who Handles Shipping | Best For |
| In-House | Your facility | You and your team | Low volume, just starting out |
| 3PL with SFP | Professional warehouses | Experienced fulfillment team | Scaling brands, maintaining control |
| FBA | Amazon warehouses | Amazon | Hands-off approach, willing to pay premium |
How to Choose the Right 3PL Partner for Amazon SFP
Not every 3PL can handle Seller-Fulfilled Prime. Amazon’s requirements are strict, and you need a partner who understands the program inside and out. Here’s what to look for when evaluating potential 3PL partners.
Coast-to-Coast Fulfillment Network
A 3PL with multiple warehouse locations across the United States is important. Amazon requires you to reach specific percentages of the country within 1-day and 2-day delivery windows. A single warehouse can’t achieve this. With strategically distributed inventory, a West Coast customer gets their order from a West Coast facility, and an East Coast customer ships from the East. This reduces transit times and shipping costs.
Amazon SFP Expertise
Your 3PL should have experience with Amazon’s Seller-Fulfilled Prime program specifically. They need to understand the performance metrics, the trial period requirements, and how to maintain compliance. Ask for case studies or references from other SFP sellers they’ve supported.
Performance Metrics for On-Time Delivery
Amazon will hold you accountable for on-time delivery and order accuracy. Your 3PL should typically demonstrate an achievement of 99% or higher on-time shipping and 99% or higher order accuracy. These metrics help protect your Prime status.
Seamless Integration with Amazon Seller Central
The 3PL’s warehouse management system must integrate directly with Amazon Seller Central. When a Prime order comes in, the information should flow to the 3PL instantly, triggering immediate order processing.
Real-Time Performance Monitoring and Alerts
Your 3PL should provide dashboards and alerts that let you monitor your SFP performance metrics in real time. If something starts trending in the wrong direction, you need to know immediately so you can course-correct before it impacts your Prime status.
Scalability for Peak Season Order Volume
During Q4 or scheduled promotional events, your order volume can spike dramatically. Your 3PL needs the warehouse staff, systems, and capacity to handle these surges. Ask about their peak season preparedness and whether they have the capacity for your account.
Step-by-Step Guide: How to Enroll in Seller-Fulfilled Prime
Joining the Seller-Fulfilled Prime program is a significant milestone in your business journey on Amazon. But in order to realize those benefits, you need to demonstrate that your business can keep up with the SFP requirements. Amazon has raised the bar for the program, and sellers need to meet stringent requirements to be eligible.
As of the date of publication of this article, here are the steps to enroll as an SFP seller.
Step 1: Join the SFP Waitlist
Start by joining the SFP waitlist on Amazon Seller Central. Navigate to the Seller Fulfilled Prime section in your account and submit your application to join the waitlist. Amazon will review your account and notify you when you’re eligible to proceed to the next step.
Step 2: Meet the Pre-Qualification Requirements
Before you can even start the Prime trial period, you need to prove that you have a track record of reliable fulfillment. Amazon evaluates your performance over the past three months (90 days) to determine if you’re ready for the demands of SFP.
Required Account Setup:
- You must have a Professional Seller account on Amazon (not an Individual account)
- You must have a domestic US shipping address for your fulfillment operation
Required Performance Metrics (Past 90 Days):
- Self-fulfill at least 100 deliveries: You need to have successfully shipped at least 100 orders yourself (not through FBA) in the past three months
- Maintain a cancellation rate below 2.5%: Your order cancellation rate must be 2.5% or lower
- Achieve a valid tracking rate of over 99%: At least 99% of your orders must have valid tracking numbers with carrier scans
- Demonstrate that less than 4% of shipments are late: Your late shipment rate must be below 4%
If you don’t currently meet these pre-qualification requirements, focus on improving your fulfillment performance over the next few months before applying for SFP. This is where working with a 3PL for your current fulfillment can help you build the track record you need.
Step 3: Pass the SFP Trial Period
If you meet the pre-qualification requirements, Amazon will allow you to register for the official trial period. This is your proving ground. The trial period lasts for 30 days and requires that you ship at least 100 Prime trial packages with near-perfect performance.
Trial Period Performance Requirements:
| Performance Metric | Requirement | What It Means |
| On-Time Shipment Rate | 99% or higher | Orders must ship the same day they’re placed, with valid tracking |
| Amazon Buy Shipping Usage | 98.5% or higher | You must purchase shipping labels through Amazon for nearly all orders |
| Order Cancellation Rate | Less than 0.5% | You can cancel almost no orders during the trial period |
| Minimum Order Volume | 100 Prime trial orders | You must successfully fulfill at least 100 orders during the 30 days |
| Valid Tracking Rate | 99% or higher | Every shipment needs a tracking number with carrier scans |
Important Note: Even if you have previously exited the program, Amazon will let you restart the trial as long as you meet the pre-qualification requirements. However, you can only attempt the trial up to three times per calendar year.
If successful, you will automatically be enrolled in Seller Fulfilled Prime at the end of the 30 days. The Prime badge will appear on your eligible listings, and you’ll have access to Amazon’s massive Prime customer base.
Step 4: Launch Inventory and Order Processing
Once you’re in the trial (or after you’ve passed it), you need to have your fulfillment operation ready to handle Prime orders. This means:
- Store inventory in your own warehouse or at your 3PL’s facilities
- Process orders yourself or through your 3PL partner
- Obtain shipping labels from approved carriers using Amazon Buy Shipping
Your 3PL partner should handle the heavy lifting here. They’ll receive your inventory, store it across their warehouse network, and integrate their systems with your Amazon Seller Central account so orders flow seamlessly.
Step 5: Deliver Fast Order Fulfillment
This is where the rubber meets the road. You must pick, pack, and ship Prime orders on the same day to meet Amazon’s fast delivery targets. This means:
- Orders received before your cutoff time must ship that same day
- Every order must have a valid tracking number
- Tracking must show a carrier scan (proof the carrier has the package)
Your 3PL’s warehouse management system should be optimized for same-day shipping. They should have processes in place to pick, pack, and hand off orders to carriers within hours of being placed.
Step 6: Meet Your Delivery Commitments
Shipping the order on time is only half the battle. Your orders must be collected and delivered within one or two days to meet Amazon’s delivery promises to Prime customers.
This is where your 3PL’s carrier relationships and strategic warehouse locations make all the difference. By distributing inventory across multiple facilities, you help minimize transit times and maximize the percentage of customers who receive their orders within the required timeframe.
Understanding Amazon’s Three-Strike Policy
Failure to meet the SFP requirements isn’t necessarily the end of the world, but Amazon takes performance seriously. The company has a three-strike policy for vendors who miss the mark:
- Strike One: You receive an email alert from Amazon notifying you of the performance issue
- Strike Two: Amazon implements a temporary pause on your Prime listings until you resolve the issue
- Strike Three: You are removed from the SFP program entirely
This policy underscores the importance of working with a reliable 3PL partner who can consistently meet Amazon’s demanding standards. You don’t want to risk losing your Prime status due to fulfillment issues.
How to Configure Your Amazon Settings for SFP
Once you’re approved for the trial or enrolled in SFP, you need to configure your Amazon Seller Central settings properly.
Set Up Your Prime Shipping Template
- In Seller Central, navigate to Settings > Shipping Settings and create a Prime shipping template. This template defines which regions you’ll offer Prime shipping to and which SKUs are eligible.
Assign SKUs to the Prime Shipping Template
- Choose which products you want to include in your SFP program and assign them to your Prime shipping template. Start with a small pilot group of SKUs for the trial period, then expand after you pass.
Enable Amazon Buy Shipping
- Make sure Amazon Buy Shipping is enabled for your account. This is the service you’ll use to purchase shipping labels for your Prime orders. Remember, you must use Amazon Buy Shipping for at least 98.5% of your Prime orders to maintain compliance.
Select Your Prime Delivery Regions
- You can choose which regions of the United States you want to offer Prime delivery to. However, remember that you must meet the geographic coverage requirements based on your product size (30% in 1 day and 70% in 2 days for standard-size products).
Managing Inventory During the Transition
One of the trickiest parts of transitioning to SFP is managing your existing inventory while ramping up with your new 3PL. You don’t want to create stockouts, but you also don’t want to be stuck with inventory in the wrong place. Here’s a practical approach.
Continue Selling Your In-House Inventory
- Keep selling the products you currently have at your facility as non-Prime listings. You can still fulfill these orders yourself while you’re setting up SFP. This helps prevent waste and maintain cash flow.
Send New Inventory to Your 3PL
- As you receive new inventory or restock products, send those shipments to your 3PL’s warehouse instead of your own facility. This gradually builds up your inventory at the 3PL without disrupting current operations.
Start the Trial with a Pilot Program
- Choose a small subset of SKUs to include in your SFP trial. Ideally, pick products that are medium-velocity sellers. Not your absolute top performers, but not slow movers either. This gives you meaningful order volume to meet the 100-order requirement without putting your best sellers at risk.
Accelerate Sell-Through of In-House Stock
- While the trial is running, focus on moving your remaining in-house inventory. You might run promotions, bundle products, or offer discounts to clear out stock faster. The goal is to consolidate your inventory at the 3PL as quickly as possible.
Pass the Trial and Scale Up
- Once you successfully complete the 30-day trial, you’re officially an SFP seller. Now you can start adding more SKUs to the program. Gradually transition additional products from FBA or in-house fulfillment to your 3PL, monitoring performance closely with each expansion.
- Plan Strategic Changeover Dates
- For your top-selling SKUs, plan specific changeover dates well in advance. Avoid transitioning these products during peak seasons like Q4, Amazon Prime Day, or other major promotional events. Choose slower periods when you have more margin for error.
The Smart SFP Transition Strategy: Crawl, Walk, Run
Switching your entire catalog to SFP overnight is risky. You could face stockouts, shipping delays, or performance issues that hurt your sales and account health. The smart approach is gradual and methodical.
This is where a hybrid fulfillment strategy becomes your safety net. Before committing fully to SFP, keep your top-selling SKUs in FBA. These products continue generating revenue with the Prime badge through Amazon’s system while you work through the SFP setup and trial period with a smaller subset of products. Once you’ve proven the model works and your 3PL partnership is running smoothly, you can gradually shift more inventory to SFP.
This approach helps protect your revenue stream, maintain your Prime eligibility across your catalog, and give you room to troubleshoot issues.
Getting Started with FBA Prep Before Full SFP Transition
Many sellers find it helpful to start working with a 3PL for FBA prep services before making the full leap to SFP. This creates a working relationship and lets you evaluate the 3PL’s performance on a smaller scale.
With FBA prep, your 3PL receives your inventory, prepares it according to Amazon’s requirements (labeling, polybagging, bundling, etc.), and ships it to Amazon’s fulfillment centers. This gives you insight into the 3PL’s communication style, accuracy, and responsiveness without the pressure of meeting SFP’s strict delivery timelines.
If the partnership works well for FBA prep, you’ll have much more confidence transitioning to full SFP fulfillment with that same partner. It’s a low-risk way to test the relationship before committing to the more demanding SFP program.
Selling Through All Your Existing In-House Inventory
A common concern for sellers transitioning to SFP is what to do with inventory they already have at their facility. You don’t want to waste it or create losses, but you also need to move forward with your SFP strategy.
The solution is to run both operations in parallel for a short period. Continue fulfilling orders from your in-house inventory as non-Prime listings while simultaneously building up inventory at your 3PL for Prime-eligible listings.
To accelerate the sell-through of in-house stock, consider:
- Offering limited-time promotions on products you have in-house
- Creating bundle deals that combine multiple in-house items
- Running flash sales to move inventory quickly
- Consider liquidation options for slow-moving stock that’s not worth transferring
As your in-house inventory depletes, your 3PL inventory grows, creating a smooth transition without disruption.
Why a Hybrid Approach Helps Protect Your Amazon Business
The hybrid fulfillment approach acts like an insurance policy during the transition. By keeping some products in FBA while testing SFP with others, you maintain multiple revenue streams, which helps reduce risk.
If you encounter issues with your 3PL during the trial period, your FBA products continue selling without interruption. If Amazon makes unexpected policy changes, you have flexibility to adjust your strategy. And if certain products perform better under one fulfillment method versus another, you can optimize your mix accordingly.
Many successful sellers continue using a hybrid approach even after fully transitioning to SFP, keeping certain product categories in FBA while fulfilling others through their 3PL. This gives you the best of both worlds: the convenience of FBA for some products and the control and cost savings of SFP for others.
Monitoring Your SFP Performance After Enrollment
Once you’re enrolled in Seller-Fulfilled Prime, the work doesn’t stop. You need to continuously monitor your performance to maintain your Prime status and avoid the three-strike policy.
Daily Performance Checks
Log into Amazon Seller Central daily to review your SFP performance metrics:
- On-time shipment rate
- Order cancellation rate
- Valid tracking rate
- Customer feedback and return rates
Your 3PL should also provide real-time dashboards that show these metrics, along with alerts if anything starts trending in the wrong direction.
Weekly Performance Reviews
Schedule weekly calls or check-ins with your 3PL to review performance, discuss any issues, and plan for upcoming promotions or inventory needs.
Quarterly Strategy Adjustments
Amazon reviews and updates SFP requirements quarterly, giving sellers 45 days’ notice before implementing changes. Stay on top of these updates and work with your 3PL to adjust your strategy as needed.
The Long-Term Benefits of Seller-Fulfilled Prime
Transitioning from in-house fulfillment to Seller-Fulfilled Prime is a significant operational shift. It requires planning, the right partner, and careful execution. But the benefits are substantial.
You gain access to Amazon’s massive Prime customer base while maintaining control over your inventory, your brand experience, and your costs. You avoid FBA’s escalating storage fees and restrictions. You can optimize your fulfillment network for your specific products and customer base. And with the right 3PL partner providing coast-to-coast coverage, performance metrics, and expert support, you can meet Amazon’s demanding standards without building the infrastructure yourself.
The key is approaching the transition methodically. Use a hybrid strategy to help protect your revenue. Start with a pilot program to prove the model. Work with a 3PL that specializes in SFP and can guide you through the process. And once you’re up and running, you’ll have built a fulfillment operation that scales with your business, keeps customers happy, and puts you in control of your Amazon success.
Your Next Steps to Amazon SFP Success
Ready to make the transition? Here’s an action plan:
- Evaluate your current fulfillment performance and identify which products are best suited for SFP
- Research 3PL partners with SFP expertise and coast-to-coast coverage
- Request case studies and references from their current SFP clients
- Start with FBA prep services to test the 3PL relationship on a smaller scale
- Meet the pre-qualification requirements over the next 90 days if you don’t already
- Join the SFP waitlist in Amazon Seller Central
- Launch a pilot program for your SFP trial with select SKUs
- Keep top sellers in FBA as a safety net during the transition
- Pass the 30-day trial with your 3PL’s support
- Gradually scale up by adding more SKUs to SFP after enrollment
With the right approach and the right partner, you can earn the Prime badge on your own terms and build a fulfillment operation that drives long-term growth for your Amazon business.
All content provided herein is for educational purposes only. It is provided “as is” and neither the author nor VEYER warrant the accuracy of the information provided, nor do they assume any responsibility for errors, omissions or contrary interpretation of the subject matter herein.
