When selling on Amazon, one of the biggest decisions sellers face is choosing between Fulfilment by Amazon (FBA) and Seller Fulfilled Prime (SFP).

Both fulfilment options come with distinct advantages and challenges, making it crucial to understand which model best suits your business. In this blog, we'll break down the key differences between Amazon FBA and Amazon SFP and explore how StoreFeeder can assist sellers in managing both.

What is Amazon FBA?

Amazon Fulfilment by Amazon (FBA) allows sellers to store their products in Amazon’s fulfilment centres. Amazon takes care of storage, picking, packing, shipping, and customer service, including handling returns.

Pros of Amazon FBA:

• Prime eligibility: Products are automatically eligible for Amazon Prime, giving access to millions of Prime members.
• Hassle-free fulfilment: Amazon manages logistics, freeing up time for sellers to focus on growing their business.
• Customer service & returns: Amazon handles inquiries and returns, reducing the operational burden on sellers.
• Faster shipping: Amazon's extensive fulfilment network ensures fast and reliable delivery

‍Cons of Amazon FBA:

• Higher fees: FBA fees can add up, especially for long-term storage or oversized products.
• Less control: Sellers have limited control over how products are stored, packaged, and shipped.
• Inventory management: Keeping track of stock and avoiding storage overages can be challenging.

‍What is Amazon SFP?

Seller Fulfilled Prime (SFP) allows sellers to ship products directly from their own warehouses while still offering the benefits of Amazon Prime. However, to qualify for SFP, sellers must meet Amazon’s strict delivery and performance standards.

Pros of Amazon SFP:

• Prime badge without FBA fees: Sellers can offer Prime shipping without the costs associated with FBA storage and fulfilment.
• Inventory control: Sellers have full control over inventory and can integrate fulfilment with other sales channels.
• Branded packaging: Unlike FBA, SFP allows sellers to use their own packaging, enhancing brand recognition.

Cons of Amazon SFP:

• Strict requirements: Sellers must maintain high performance metrics, including on-time shipping and fast delivery speeds.
• Logistics responsibility: Unlike FBA, sellers must handle all aspects of fulfilment, including returns and customer service.
• Shipping costs: Meeting Amazon's stringent Prime delivery standards can lead to higher shipping costs.

How StoreFeeder can help with both FBA and SFP

Managing fulfilment on Amazon, whether through FBA or SFP, can be complex. StoreFeeder, a powerful multichannel eCommerce management software, offers a suite of tools designed to streamline the fulfilment process for both models.

StoreFeeder Benefits for Amazon FBA Sellers:

• Automated inventory syncing: Keep stock levels updated across multiple sales channels to avoid overselling.
• FBA shipment management: Easily create and send FBA shipments to Amazon’s fulfilment centres.
• Detailed reporting: Monitor FBA fees, sales trends, and stock performance to optimise profitability.

StoreFeeder Benefits for Amazon SFP Sellers:

• Order routing & shipping automation: Integrate with leading couriers to ensure fast, Amazon-compliant Prime shipping.
• Performance tracking: Monitor delivery times and other key performance metrics to maintain SFP eligibility.
• Warehouse & inventory management: Centralised control over inventory to fulfil orders efficiently while managing multiple sales channels.

Conclusion

Choosing between Amazon FBA and SFP depends on your business model, cost structure, and operational capacity. FBA is ideal for those who want a hands-off fulfilment solution, while SFP is best suited for sellers who can meet Prime’s shipping requirements while maintaining control over fulfilment. Regardless of your choice, StoreFeeder provides essential tools to streamline inventory, order, and shipping management, making it easier to succeed on Amazon.

Want to learn more? Explore how StoreFeeder can optimise your Amazon fulfilment strategy today!

‍