The Complete Guide: How to become an Amazon Prime seller

Do you want to become an Amazon Prime seller and establish an Amazon FBA business? Do you want to make the most of it? If so, this article is for you. Here you can find all information about Amazon Prime seller accounts.

If you have ever read Amazon FBA business carefully, you may have seen Amazon Prime badges on different products. You may like it or despise it, but you know Fulfillment by Amazon (FBA). But you may not be aware of Amazon’s Seller Fulfillment Prime (SFP) program. In addition, you may not understand the benefits of SFP to your business.

As a customer, its importance is self-evident. If you are a Prime member, you will get 2 days free shipping when you purchase this product. As a distributor, the advantages of owning the Prime badge will not be so self-evident. However, for every seller on Amazon, it is absolutely necessary to have the Prime badge.

If you are a committed supplier, then your e-commerce method should use SFP. We are here to clarify why this is the case. For Amazon resellers looking for a loyal customer base, Amazon Prime is the best way to sell. There are more than 112 million Amazon Prime members. It includes approximately 51.3% of American households.

For most product categories, products with the Prime badge sell more. The Prime badge means trusting Amazon customers, your image, and your products by trading them. Many Prime individuals purchase items with the Prime badge. That's it, how will you sell on Amazon Prime and use this miracle to grow your deal? Using FBA is the best way to buy the Prime badge is a typical judgment. However, it is one of three different ways to obtain it.

What is Amazon Prime?

Amazon Prime is a monthly membership package for all Amazon customers. One person must pay $119 per year, while Prime students personally pay $59 per year. Regarding monthly memberships, they spend $12.99 and $6.49 each month.

By purchasing Amazon Prime, customers can get unique streaming and shopping discounts. They entered lightning trading 30 minutes earlier than non-Prime individuals. Amazon Prime users can also get shopping allowances.

Dependent upon where purchasers live, being a Prime makes you qualified for:

• Free 2-hour shipping
• Free same-, one-and two-day transporting
• Saturday delivery service
• Delivery date delivery

There are now more than 150 million Prime users worldwide. There are approximately 112 million people in the United States alone.

How to sell on Amazon Prime?

Regarding selling Amazon Prime as a third-party seller, you have the following three options:

1. Vendor Center

Vendor Central is a completely different ball game. Amazon welcomes brands to join the stage, and then buy them in bulk from you at a discounted price. Your product will be sold by Amazon on the Amazon website. They will handle all processes, deliveries, customer service, returns, etc.

As an Amazon seller, you use Amazon as one of its discount providers. You don’t like selling products to customers through other business centers. Supplier Center is an invitation-only service and Amazon should register you as a seller. The supplier center is generally suitable for establishing brands and suppliers. A large number of brands have just been invited to join the program.

Cons

• You need to pay for promotion to get the best outcomes. It tends to be costly.
• Vendor Central is invitation-only.
• Amazon chooses which items to buy from you and in what amounts. Request volumes might be frustrating.
• Amazon may drive costs less than your Minimum Advertised Price (MAP).
• There may be no space for exchange on Amazon’s agreement terms, including pricing. Profit margins may be pressed.
• For items that Amazon would not like to stock, you should offer them to the buyers yourself or locate an outsider dealer. You must do so if you need them to be accessible on the Amazon site.
• You will require excellent coordination to satisfy Amazon’s purchase orders. You may also need to transport small amounts to various areas.

Pros

• Amazon handles all business deals. It does so without including you.
• Vendor Central is the primary. You just need to handle Amazon’s purchase requests and charge them. It is much the same as offering wholesale to any retailer.
• Vendor Central postings are named “Ships from and sold by Amazon.com.” This may additionally support client certainty.

2.Seller Fulfilled Prime (SFP)

Seller-delivered Prime allows organizations to control inventory and demand satisfaction. It also has the advantage of selling on Amazon Prime. In order to meet the requirements of SFP, you should transport the items on the same day and use a confirmed transportation tool. You need to use Amazon to purchase shipping labels to meet performance standards. You cannot charge transportation fees.

When you understand the trial period, you will be better prepared to meet the needs of SFP. To effectively complete the SFP trial period, you should:

• Offer premium delivery to your clients.
• Have a request dropping rate of under 0.5%
• Boat over 99% of your orders on schedule
• Convey orders with Amazon-affirmed suppliers
• Utilize Amazon’s Buy Shipping Services for at any rate 99% of your requests
• Permit Amazon to deal with client service requests
• Consent and follow Amazon’s return policies

Cons

• You should run a fabulous delivery activity, satisfying requests rapidly. You also need to pay for all the costs while staying aware of all the SFP basics.
• SFP has severe acceptance models. It includes meeting all requirements for Premium Shipping. This includes passing the time for testing of 5 to 90 days with at least 200 requests. In some cases, there is a waiting list for applications.
• There is the cost of putting resources into and keeping up a warehouse, staff, software, and inventory.
• Sellers who later fall beneath the standards should experience changing to FBA if they want to hold the Prime badge.

Pros

• You hold authority over your inventory and fulfillment measures.
• You have more authority over returns and discounts.
• There are no FBA postage charges. You just need to oversee inventory levels in your warehouse(s).
• Dealers with shifted inventory can utilize various fulfillment strategies. They can deliver massive items through SFP and smaller items through FBA.
• There is the potential for higher profits on massive and hefty things. Such products do not need to be dispatched twice (first to Amazon and then to the client).

3. Fulfillment by Amazon (FBA)

The easiest way to sell on Amazon Prime is to join Amazon FBA. It is a mechanized and pioneering fulfillment organization. You send your product inventory to Amazon, and they store it in their warehouse. When a customer submits a request through your post, Amazon will select, package, and deliver it.

There is no retention checklist, and no formal testing time is wasted. As an FBA reseller, all you need to do is to get the Prime badge on your posts and keep up with the implementation of large vendors. Amazon has not determined the expectations of FBA distributors to obtain and retain the Prime badge. The following things seem to affect your Prime badge:

• Follow Amazon’s posting and item strategies.
• Less than 1% defect rate
• Sticking to Amazon inventory storage limits

Cons

• FBA can be costly in contrast to doing your delivery based on your cost structure.
• You may have the cost of keeping your items for the long haul in their storage.
• Amazon may request that you transport small amounts to many areas. You can rule this out if you pay extra for the Inventory Placement Service.
• You should screen inventory levels in FBA and recharge stocks time and again.
• Amazon can “intermix” your inventory with items from different dealers. You could get the fault for a phony or harmed thing that originated from an alternate vendor.

Pros

• It is fully mechanized and coordinated with the Amazon commercial center.
• FBA is a fulfillment administration. You do not need to deliver orders or manage some other part of order fulfillment.
• FBA charges may be cheaper than doing your packing and delivery.
• Amazon handles transportation and client care.
• Just like the Prime badge, your postings will likewise say "Satisfied by Amazon."
• Amazon can cut negative client responses that are related to shipping or fulfillment.

How much does it cost to sell on Amazon Prime?

The cost of selling on Amazon Prime depends on your fulfillment strategy. If you sell Fulfillment by Amazon (FBA), then the Amazon Prime fee will be included in your FBA fee. The size of the cost will depend on:

1. The size of your items

The cost of your Amazon FBA depends on the number of items it owns. The more the quantity, the higher the transportation cost.

2. Delivery weight of your item

Amazon's cost directly depends on the weight of the product you deliver.

3. The weight of the packaging materials used

The greater the quality; the higher the delivery cost.

If you fulfill your own order (FBM), you don’t need to pay additional Amazon fees.

Why become an Amazon Prime seller?

SFP should be the real idea of your e-commerce business. It does not depend on whether you are selling in other online business centers, or you have now earned the excellent Prime badge through FBA. You should be an Amazon Prime seller or SFP due to the facts stated below:

1. Avoid long-term storage and FBA fees for large items

There is no doubt that the cost of FBA may be limited for those who occasionally sell things that are huge or heavy. SFP maintains a strategic distance from this cost, and satisfies these things on its own or through 3PL. The cash savings from these costs can offset the fast and free shipping costs. It helps keep the cost of Amazon and your various sales channels high.

2. You can control the inventory

For those who use or consider using FBA, one of the main problems is the lack of control and understanding of inventory. This situation mainly occurs when you use a warehouse other than Amazon. SFP avoids this situation by allowing you to keep all your inventory in the warehouse. It can also use inventory management software to run inventory checks and reports. They provide better knowledge of your inventory levels and execution. Finally, all these services allow you to design future transactions more effectively.

3. You are eligible for Amazon Prime

First and most importantly, SFP makes you eligible for Amazon Prime. It is a fast-delivered subscription service with more than 100 million dynamic users. This forces you to reach 96% more customers, who are bound to buy from Amazon. It does this by expanding the visibility of filtered and unfiltered search results.

4. Amazon Prime members are loyal

According to an ongoing survey, more than 1,000 buyers (60% of Amazon Prime users) said they would portray themselves as "brand loyalists." Only 39% of non-Prime users said the same. Not only that, when asked where they would go shopping if they could only buy from one store, 67% of Prime users said they would shop on Amazon. On the other hand, only 32% of non-Prime members would choose to do so.

5. You can sell on multiple sales channels

SFP also allows you to choose to sell on various sales channels. In doing so, there is no need to worry about the high multi-channel fulfillment cost of FBA. You can also give up restricting inventory levels between sales channels.

In addition, if your cycle allows you to enter the SFP, you can use it to jump to different business centers. You can also enjoy their fast delivery plan. Some examples of this include Walmart’s free 2-day delivery and eBay Fast N’ Free.

6. Amazon Prime Messaging promotes your products for you

Surpassing customers to buy from you again may be tiring. However, your business must transform these customers into everyday customers. The cost of acquiring new and returning customers is usually 20% higher than for first-time buyers. Their conversion rate is much higher (60-70%).

More than 75% of Prime personally believe that Amazon is a fair organization for customers. 84% of members are more willing to choose to shop on the platform. For non-Prime individuals, their relevance has indeed decreased; 60% and 52%. However, these numbers are still high.

7. Your chances of winning the Buy Box are greater.

SFP means you have a higher chance of winning the Amazon Buy Box. Buying a Box allows you to appear on the product page first. The buy box represents 82% of transactions, which enhances your ability to convert customers into profits.

8. You can choose your carrier

As an SFP reseller, you can also supervise which carrier you use without restriction to speed up delivery. You can tailor your choice based on location, service level or personal decision.

If you meet the following conditions, you may not need Prime
Before paying attention to FBA, SFP or Vendor Central, you need to make a decision. Is it worth solving whether you need to sell on Amazon Prime? Amazon sells more than 12 million items. Many of them do not have the Prime badge, but they still sell well. Quite a few people with badges also sell them.

Prime is not a guarantee of progress. Although in some cases the Prime badge is everything except the main badge, in some cases it is not that serious. You may not need Prime in the following situations:

• The cost of your goods is better than Prime merchants struggling to get a Buy Box. At the moment, if the Prime dealer’s price is much higher, you can win the Buy Box.
• You have marked items that buyers are interested in. If they should own you and your image, even if they don't have Prime, they will buy it. However, considering that they have selected the Box to show the possibility of Prime. They may never realize that your item is on the list.
• You sell something difficult and elusive to send on Amazon. Let us take commercial machines or equipment, some equipment or tools with low transaction volume as examples. Not all such goods are suitable for FBA. Such items will punish items that are moderately sold. Amazon may not need to sell them through a supplier center.
• You sell used media items, such as course books, rare books, or repaired items. By definition, these are special, so you will not directly compete with others.

How can Sourcing3 help you import products from China for your Amazon business?

Sourcing3 is a sourcing expert who can quickly help you save on the cost of selling on Amazon. They provide customers with several types of assistance so that they can take advantage of their business. It has a team of experts who know the market very well and have deep connections with Amazon. They provide services in the following ways:

1. Identify high-quality Chinese suppliers

Sourcing3 encourages you to find the best professional cooperatives in China. They will work with key wholesale sellers in China. They help your business grow by ensuring the nature of the goods you sell. It enables you to select high-quality goods at the cheapest cost on the Chinese market. They will try their best to meet your expectations and let you have friendly contacts with Chinese sellers. Such a procurement expert is a requirement for your next business or Amazon FBA business.

2. Negotiate to obtain and obtain competitive product prices

Sourcing3 finds the best products from China. Sourcing3 finding the ideal quality project at the cheapest cost. They conduct barter transactions from you at the best price. Their team has extensive experience with Chinese sellers. You can rely on them to find the best price for you. They do their best to satisfy customers with the price and quality of the goods. This is a huge source of the most affordable price while sitting at home. Their team will ease your efforts and save your bank very carefully.

3. Place an order

Sourcing3 also guarantees the status of your order. It manages the cycle of your request from start to end. They observe and check the early shipment of your goods.Sourcing3 will ensure that your product will contact you as soon as possible. With the help of Sourcing3, you can sit at home and place an order and check the status of the order. For wholesale buyers who wish to buy from China, this is a complete package. Make sure to use their service to source your next delivery from China.

4. Provide the best Amazon preparation service

Amazon provides a preparation service to process and bundle your items at relevant costs.Sourcing3 can handle the business for you. You can use their support to bundle and set up your items for accurate implementation. Well-packaged inventory can ensure safety and reach the warehouse early. They provide you with the best Amazon preparation services and process your items quickly.

5. China's import tariff solution

Tariff refers to the import and export taxes that need to be paid when importing goods to a country.Sourcing3 handles tariffs on Chinese products and provides you with import solutions.Sourcing3 clears customs and provides you with relevant information. It will not let you make any attempts.

Some wholesale products require several certifications. Similarly, various products require customs clearance. A few countries/regions can provide desk work answers for the goods to be imported.

Sourcing3 completes all key tasks quickly. Their organization clarified the basic requirements for shipping goods to a country. They will handle/solve all tariff issues. Therefore, your things will reach your hands meaninglessly.

6. Handle your Amazon FBA transportation business at the lowest logistics rate

Negotiating and ensuring low shipping rates may be the buyer's main concern. The test is to achieve and then maintain ocean freight rates, which is more difficult than people think. Nevertheless, with proper arrangements, this can be achieved.

Sourcing3 helps you get the most economical order logistics. They manage your request until it is shipped to your area. It covers all the needs of your import. They strive to provide comfort to customers. It guarantees buyers a good experience of importing from China.

Final thoughts on Amazon Prime sellers

SFP is ideal for organizations that deliver for many sites. It does not depend on whether it is their website, online business center, in-store transactions, or orders. It allows them to keep the current system. SFP affects existing businesses and helps them solve fixed costs. It helps them stay away from the complexity of monitoring inventory in different regions.

Certain kinds of things are particularly suitable for SFP. There is a little doubt that selling on Amazon Prime has an incredible impact on most sellers’ business sales. You should summarize how to get it through FBA, SFP, or supplier center for posting your goods. To do this, you need to choose among the three for your Amazon FBA business.

First of all, you would say what type of Amazon business you are engaged in? Do you want to sell only B2C, B2B, or both? What kind of products would you say you sell, and what is the ideal way to sell them?

Second, what is the competition in your niche market? If your item competes with other items at the same price and has the Prime badge, you also need the Prime badge. Third, what kind of interest do you have in your items? If there is a huge demand, then Prime is your partner at this point. On the other hand, if your stuff is obscure, then you might just ignore it.

Selling on Amazon Prime provides a way to associate your images and products with customers faster than ever. It has three reseller plans suitable for many organizations. See what fits best and prepare for more additional sales than ever before. Your e-commerce business should be in SFP, because everyone will win.

• Amazon benefits your business in many ways.
• Your customers profit by effectively discovering you. It can help them use their Amazon Prime membership to enjoy free and fast delivery service.
• You profit by acquiring new customers. SFP helps to establish more solid customer value life cycle indicators. It enables you to meet all the requirements of other fast delivery programs.

Frequently asked questions for Amazon Prime sellers
The seller asked many questions about Amazon Prime. We try to cover the most serious issues of working as a Prime seller on Amazon and Amazon Prime seller accounts. The following are common questions and their answers:

Can Amazon sellers get Prime for free?

No, Amazon accounts do not include Prime services. The Pro fee replaces the $0.99 per unit sales fee that must be paid by individual account users. It gives you access to Buy Box, business reports, restricted categories and items. Therefore, there are major Amazon seller fees.

Owning Prime can be enjoyable. However, it does not exist, and it has not existed since the beginning. If you need Prime membership, you must be alone. Also, be aware that you cannot use Prime for customer orders or the sale of resale items. This will result in cancellation of registration, suspension of dealer accounts, or both.

Are all FBA products Prime?

Yes, if your products are in the FBA warehouse, they will be considered premium products. As the name suggests, FBA means that your inventory is handled by Amazon. With Seller Fulfillment Prime, you can easily achieve delivery. Customers will buy through Amazon Prime, and your organization is responsible for shipping these things.

Who is not eligible for Amazon Prime?

Resellers who do not fill in products from the Amazon warehouse are not eligible for Prime. Sellers seem to be fulfilling customer orders instead of using FBA to seek help from Amazon.

When a reseller purchases FBA, things that are usually completed through Amazon are eligible for Prime Shipping. Usually, this means that the product is sold through Amazon, not Amazon.

What is the difference between Amazon and Amazon Prime?
Amazon is the parent company; Amazon Prime is the help it provides. Amazon provides standard delivery services for products requested through its website. Amazon Prime supporters enjoy the advantage of free, standard or 2-day delivery.

What are the best-selling products on Amazon 2020?
The following niche markets will have the highest sales on Amazon in 2020:

• Shapewear
• Health and beauty products
• Travel accessories
• Smartwatches
• Skin Care
• Health Care
• Lamps and Shades
• Hobbies and Crafts

Finally

This is what we think of Amazon Prime sellers. After reading this article, you will be able to understand Amazon Prime and Amazon FBA business. You can joinSourcing3 to enjoy their Amazon and import services. Make sure to useSourcing3 to source your next delivery from China to get the best service. Their team of experts will do all the necessary work to run your import business. We hope you enjoy this article. Goodbye!