Differences between Fulfillment by Amazon and Seller Fulfilled Prime

Fulfillment and Seller Fulfilled are both programmes aiming first and foremost at customers of Amazon Prime - a sort of a very select club offering advantages to buyers and access to multimedia content.

How do Fulfillment by Amazon and Seller Fulfilled Prime stand out from each other?

• Logistics. Within the framework of Fulfillment by Amazon (FBA), the platform handles the entire logistics process - from product storage in warehouses to dispatching. Seller Fulfilled Prime (SFP) leaves you 100% in charge of everything in this regard, yet forces you to cover dispatch fees at your own cost.

• Stock control. With FBA, product storage is entrusted to Amazon, which can definitely take a huge load off your mind... Except if you are selling via several channels, in which case you will need to split your stock into two (you would be managing the rest) or decide to completely yield stock management to Amazon. Added to this is the fact that storage fees increase the longer your products remain in Amazon’s warehouses... This problem does not exist with SFP, but is replaced by another issue: complying with Amazon’s promise regarding delivery lead times (one working day for “Prime” customers).

• Return management. In the event of a product being returned under the FBA programme, Amazon handles everything: a definite advantage for small establishments that have other things to worry about. With SFP on the other hand, you need to be able to count on your own customer service - but that also means controlling your returns more carefully. In both cases, the fees are to be covered by the vendor.

• Service access. Eligibility conditions for the SFP programme are strict: you need to have used Fulfillment by Amazon in the past, and passed a trial period to be granted full access to the service. You also potentially need to wait for a space to free up - as Amazon does not constantly take on new vendors as part of its SFP programme. On the other hand, you could sign up immediately to FBA.

As a conclusion, Fulfillment by Amazon is better suited to small vendors who are just starting out or wish to remain small-scale, whereas Seller Fulfilled Prime is more appropriate for e-vendors that are already well-established and have several different sales channels.