What are the different ways to sell on amazon prime?

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What are the different ways to sell on Amazon Prime?

Selling on Amazon Prime has significant benefits. Research indicates that Prime products receive a higher ranking in search than non-Prime products. This is very important for private label sellers, who are often competing against a number of similar products that already have the Prime badge, and would be at a disadvantage if they were the odd one out.

For products with more than one seller, Prime provides an advantage over competitors for winning the Buy Box. It is not the only factor in determining the Buy Box winner, but it is one of the most important.

Prime member buying behavior creates another significant benefit for sellers. Shoppers will often check the box to show only products available under Prime – or just visually filter out products without the badge. This is because once people get used to the fast 1-2 day shipping, Prime members find it hard to accept anything slower.

Prime members not only spend more annually but also shop more frequently and spend more per visit to the marketplace. By offering your product under Prime, you open the door to greatly increased sales for your Amazon business.

Here’s a summary of the three ways your products can sell on Amazon Prime:

Fulfillment by Amazon (FBA)
FBA is a comprehensive, easy-to-access, pay-as-you-go logistics service provided by Amazon which includes warehousing, picking, packing, shipping, returns, and customer service.

The FBA program is integrated with the Amazon marketplace, so when you sell an item on Amazon that is stored in an Amazon warehouse, the order gets processed automatically. The FBA program is available to all businesses, from sole traders to multinational companies.

Seller Fulfilled Prime (SFP)
SFP allows sellers to handle their own fulfillment and shipping, but still get the Prime badge on their products. Orders are shipped from the seller’s own warehouses via approved carriers, or by using a third-party logistics service provider (a 3PL).

Vendor Central
As an Amazon vendor, you sell to Amazon as one of its wholesale suppliers, rather than selling directly to shoppers through the third-party marketplace.

Vendor Central is invitation-only – you must be recruited by Amazon as a vendor to participate. Vendor Central is most relevant for established brands and manufacturers, many of which have already been invited to join the program.

Before committing to FBA, SFP or Vendor Central, it’s worth questioning whether selling on Amazon Prime is really a necessity for you.

Amazon sells more than 12 million products. Many of them do not have the Prime badge and still sell well, and many of those that do have the badge still sell poorly. Prime is not a guarantee of success.

While the Prime badge is all but essential in some circumstances, there are situations where it is not such a big deal. So, do you need it?

You really need Prime if:
1. You have your own brand, but there are other very similar products with the Prime badge that compete with yours. This is the case for the majority of private label products.
2. You sell a third-party branded product that other sellers are also offering (i.e. competing for the Buy Box on the same listing), and one or more of these sellers have the Prime badge.

In summary, if you don’t have Prime but are in very direct competition with other sellers who do, you are likely to struggle to get sales.

Ultimately, selling on Amazon Prime offers a way to connect your brand and products with customers faster than ever, through three seller programs that fit many businesses. Carefully review your business situation, see what fits best, and get “primed” for more sales than ever before.

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