Amazon will drop the 2% fee for using Seller Fulfilled Prime (SFP) when it becomes available in October, according to Bloomberg.
Amazon had announced in June it was reviving the program and provided more details in August, saying it would open SFP October 1st.
The Amazon SFP program has a high bar – not every seller can meet the requirements described on the Amazon website (nor would every seller necessarily wish to participate):
- Offer Premium Shipping Options;
- Ship over 99% of your orders on time;
- Have an order cancellation rate of less than 0.5%;
- Use Amazon Buy Shipping Services for at least 99% of orders;
- Have nationwide delivery coverage for all standard-size products;
- Use ship methods that support weekend delivery and pick up (Saturday or Sunday);
- Meet targets for 1-day and 2-day delivery promises;
- Deliver orders with our supported Seller Fulfilled Prime carriers;
- Seller must agree to the Amazon Returns Policy;
- Allow for all customer service inquiries to be dealt with by Amazon.
Some media reported on Wednesday that the decision to drop the 2% SFP fee was related to a pending investigation by the Federal Trade Commission, but there was immediate pushback to the fees from sellers themselves.
One Amazon seller said they were puzzled that merchants providing the fastest shipping services and generous return policies – which would add to their costs – would be penalized rather than rewarded for their participation in the program.
Why the interest at all? Sellers who participate in the SFP program have a Prime badge displayed on their listings, which attracts shoppers and would likely increase sales.
Reuters also picked up the story on Wednesday.
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