Amazon FBA and SFP: Why you should use it

  • Amazon FBA (Fulfilment by Amazon) is a service that allows you to store your products in Amazon’s fulfilment centres, where Amazon handles the picking, packing, shipping, and customer service for your orders. By using FBA, you can benefit from:
    • The Prime badge, which attracts more customers and increases your sales potential.
    • The reduced shipping costs and faster delivery times, which improve your customer satisfaction and retention.
    • The simplified inventory management and tax compliance, which save you time and money.
    • The access to Amazon’s global marketplaces and fulfilment network, which expand your reach and growth opportunities.
  • Amazon SFP (Seller Fulfilled Prime) is a service that allows you to fulfil your orders from your own warehouse, while still displaying the Prime badge and accessing the Prime customer base. By using SFP, you can benefit from:
    • The flexibility and control over your fulfilment operations, which suit your specific needs and preferences.
    • The lower fees and higher margins, which increase your profitability and cash flow.
    • The ability to sell products that are not suitable for FBA, such as slow-moving, bulky, or fragile items.
    • The access to Amazon’s approved carriers and shipping solutions, which ensure the quality and speed of your delivery.

Both FBA and SFP have their own requirements and challenges, so you need to weigh the pros and cons of each option and choose the one that best fits your business model and goals. You can also use both FBA and SFP together, depending on the type and demand of your products, to optimize your fulfilment strategy and maximize your Prime sales. You can find more information and guidance on how to use FBA and SFP on Amazon’s website1

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