Advantages of becoming an Amazon Prime Seller

Updated on : January 10, 2024
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Advantages of becoming an Amazon Prime Seller

In the competitive landscape of e-commerce, being an Amazon Prime Seller is more than a badge; it’s a gateway to a multitude of advantages. This blog will delve into the diverse benefits and strategic insights that come with offering Prime services on Amazon.

What is Amazon Prime Sellers?

Amazon Prime is a customer program offering perks like fast deliveries and exclusive sales. Launched in 2016, it’s grown rapidly in India. As a seller, joining as an Amazon Prime Seller not only gets you Amazon Prime Badge but also increases your product visibility, attracting more customers, and boosting sales.

To become an Amazon Prime Seller and unlock these opportunities, you can choose Fulfilment by Amazon (FBA) as your shipping method. Alternatively, joining the Local Shops program allows access to the Prime badge for customers in nearby pin codes. The impact of Prime Day extends beyond the event itself, with new sellers experiencing a threefold increase.

Key Takeaway:

Strategic Advantage of Prime Services: Being an Amazon Prime Seller is not just a status symbol; it’s a strategic move to gain advantages like faster deliveries, increased visibility, and participation in exclusive events.

Programs for Amazon Prime Sellers

Amazon Prime sellers, also known as FBA (Fulfillment by Amazon) Prime sellers, can utilize various Amazon programs to enhance their offerings and visibility to Prime members. Some of the eligible programs for Amazon Prime sellers include:

  1. Fulfillment by Amazon (FBA): Sellers store their products in Amazon’s fulfillment centers. Amazon handles storage, packing, shipping, and customer service for these items. Check Amazon FBA Fees to know more about Amazon FBA and its fees.
  2. Amazon Prime: Prime-eligible products are available for Prime members, offering fast and free shipping, thereby enhancing product visibility and sales potential.
  3. Amazon Buy Box: Prime-eligible offers have a higher chance of winning the Buy Box, a prominent area on the product detail page where customers can directly add items to their carts.
  4. Prime Exclusive Discounts: Sellers can offer discounts exclusively to Prime members, encouraging higher sales among Prime customers.
  5. Prime Day Participation: Sellers with Prime-eligible products can participate in Prime Day, an annual sales event exclusively for Prime members, to boost sales.
  6. Subscribe & Save: Sellers can enroll eligible products in the Subscribe & Save program, offering recurring automatic deliveries for subscribed customers, attracting loyal buyers.
  7. Amazon Prime Video: Sellers may have the opportunity to advertise their products through sponsored placements on Amazon Prime Video, reaching Prime subscribers.
  8. Amazon Prime Pantry: Prime-eligible products can be included in Amazon Prime Pantry, offering a convenient way for Prime members to order household essentials.

These programs provide Prime sellers with additional visibility, credibility, and access to Prime members, enhancing sales opportunities and customer reach. However, eligibility for some of these programs may have specific requirements that sellers need to meet to participate.

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Advantages of becoming Amazon Prime Seller

1. Prime One-Day or Two-Day Delivery:

Being an Amazon Prime Seller means your products are eligible for Prime shipping, often with free prime two-day delivery or Prime one-day delivery. This visibility can significantly increase your product’s appeal to the millions of Amazon Prime members who prioritize fast and reliable shipping.

2. More Visibility to Customers:

Prime products are featured prominently on the Amazon website, giving Amazon Prime sellers unparalleled visibility. Prime-eligible items are more likely to appear in the Buy Box, increasing the chances of attracting potential customers.

Amazon Prime operates globally, providing Prime sellers with the opportunity to reach an international customer base. The optimized product detail pages for Prime products ensure preferential treatment in search results, increasing the likelihood of potential customers discovering your products.

3. Early Access During Sales:

Major sales events like the Great Indian Sale grant early access to Prime members. This head starts in reaching customers before competitors is a crucial advantage during the frenzy of a sale.

4. Boost in Sales:

The cumulative impact of quick delivery, increased visibility, and participation in exclusive events contributes to a substantial boost in sales. Prime Sellers have reported up to a threefold increase in sales, making it a strategic move for business growth.

5. Tap into a Loyal Customer Base:

The Prime badge is a mark of trust, indicating that a product meets Amazon’s high standards for quality and service. Customers actively seek out Prime-eligible products, allowing sellers to capitalize on this dedicated customer base and build brand loyalty.

6. Access to Prime Day and Other Amazon Prime-Exclusive Deals:

Prime Day, a monumental shopping event initiated by Amazon, is a golden opportunity for Prime Sellers. Exclusive deals and product launches attract millions of shoppers, providing Prime Sellers with a platform to showcase their products to a massive audience.

7. Amazon Lightning Deals and Deals of the Day:

As a Prime Seller, you can offer Amazon Lightning Deals and Deals of the Day, providing additional ways to attract customers and drive sales. These time-sensitive promotions can create a sense of urgency, prompting customers to make faster purchasing decisions.

8. Seller Gains More Control Over Inventory:

While FBA may limit control and visibility, SFP allows sellers to ship inventory from non-Amazon warehouses, providing greater control. This is particularly advantageous for sellers with multiple sales channels or seasonal products.

9. Better Control of Amazon Long-Term Storage Fees:

SFP gives sellers full control over warehouse costs, avoiding the unpredictable storage fees associated with FBA. This control is crucial for cost savings, especially for sellers with well-managed supply chains.

10. Control Fulfilment and Shipping Fees:

FBA fees can erode a seller’s profit margin. Amazon SFP empowers sellers to eliminate inbound shipping costs to Amazon, offering better control over fulfilment expenses.

11. Product Flexibility:

SFP allows for last-minute modifications to packaging or product enhancements, providing sellers with flexibility. Maintaining inventory at their own warehouse ensures adaptability to market demands.

12. Better Control Over Returns and Refunds:

Handling returns and refunds is streamlined with Seller Fulfilled Prime, placing control back in the hands of the seller. This autonomy reduces reliance on Amazon for claim resolution, enhancing overall customer satisfaction.

Key Takeaway:

Multi-Faceted Benefits for Sellers: The content highlights a range of benefits, from accelerated sales and enhanced visibility to the control over inventory, shipping fees, and long-term storage costs, making it a comprehensive guide for sellers considering the Prime program.

How to become an Amazon Prime Seller?

Becoming an Amazon Prime seller involves adhering to specific criteria set by Amazon to ensure a high level of customer satisfaction and quick delivery. Here are steps to become an Amazon Prime seller:

  1. Fulfillment Method: Opt for Fulfilled by Amazon (FBA) or Seller Fulfilled Prime (SFP) to handle shipping orders. FBA involves storing your products in Amazon’s fulfillment centers, while SFP enables sellers to use their own warehouses but meet Amazon’s Prime shipping standards.
  2. Meet Prime Requirements: To become a Prime seller, your products must meet specific criteria, including:
    • Fast Shipping: Ensure quick and reliable shipping, preferably within two days or less.
    • Product Quality: Offer high-quality products and maintain good seller performance metrics.
    • Prime Badge Eligibility: Products must be eligible for the Prime badge, indicating they qualify for Prime benefits like free and fast shipping.
  3. Enroll in SFP or FBA: If using FBA, ship your inventory to Amazon’s fulfillment centers and let Amazon handle the storage, packing, and shipping of orders. For SFP, sellers manage their shipping but must maintain Prime-level shipping standards.
  4. Maintain High Performance: Consistently meet Amazon’s performance metrics, ensuring on-time deliveries, low order defect rates, and excellent customer service to maintain Prime eligibility.
  5. Apply for Prime: Once you’ve met the requirements and your products are eligible for the Prime badge, you can apply for Prime status through Seller Central.
  6. Adhere to Policies: Follow Amazon’s guidelines and policies to maintain Prime eligibility and prevent account suspension.

Remember, Amazon may review seller accounts periodically to ensure they meet Prime standards. Meeting these standards consistently will help you become and remain an Amazon Prime seller.

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Different Shipping Options for Amazon Prime Sellers?

Becoming an Amazon Prime Seller can significantly enhance your sales by offering attractive discounts and deals to customers.

Prime sellers on Amazon can access various fulfillment and shipping options to cater to customer demands:

Fulfillment by Amazon (FBA):

Fulfillment by Amazon (FBA) streamlines your business by handling packaging, shipping, and customer service. Enjoy time savings, trust-building, and hassle-free scaling, with fees based on your product category. Sign up for FBA to make your products eligible for Prime.

  • FBA Fees breakdown:
    • Referral Fee: Varies by category (starting from 2% of sale).
    • Closing Fee: Fixed price based on item price.
    • Fulfillment Fee: Starts at Rs. 28, covering picking, packing, storing, and shipping.

You can check the list of FBA fees and use the fee calculator here.

Local Shops on Amazon:

Local Shops on Amazon enables brick-and-mortar stores to thrive online. Register your physical store, offer same or next-day delivery, and unlock the ‘Prime Badge’ for enhanced visibility and discovery.

  • Criteria: Physical store, ability for same or next-day delivery, and additional services if applicable.

Seller Fulfilled Prime (SFP):

Seller Fulfilled Prime (SFP) allows sellers to provide a Prime experience by shipping directly from their facility. This invite-only program reduces shipping costs while maintaining the Prime advantage.

Seller Flex:

Seller Flex integrates FBA services into your storage facility, provided you meet criteria like having a Flex site, IT infrastructure, ample manpower, and necessary packaging supplies.

Key Takeaway:

Transformative Journey to Business Growth: The conclusion emphasizes that becoming an Amazon Prime Seller is a transformative journey, offering sellers the potential to elevate their brand, tap into a loyal customer base, and maximize sales by embracing the comprehensive benefits of the Prime program.

Discover more about KwickMetrics by using our demo account

FAQs In relation to Amazon Prime Seller

How do I become an Amazon Prime Seller?

Explore the steps, such as choosing FBA or joining the Local Shops program, to unlock the benefits of being an Amazon Prime Seller.

What advantages do Prime Sellers have in terms of product visibility?

Understand how the Prime badge, one-day or two-day delivery, and visibility on the Amazon website contribute to increased product appeal.

What benefits do Prime Sellers experience during major sales events like Prime Day?

Learn about the early access granted to Prime members, contributing to a boost in sales and increased visibility during exclusive events.

How does Seller Fulfilled Prime (SFP) offer more control to sellers over their inventory?

Explore the advantages of SFP, including better control over long-term storage fees, fulfilment and shipping fees, and enhanced flexibility.

Conclusion

Being an Amazon Prime Seller is a transformative journey that goes beyond expedited shipping. It’s about leveraging strategic advantages to elevate your brand, tap into a loyal customer base, and maximize sales. By embracing the comprehensive benefits of Prime, sellers can position themselves for success in the dynamic world of e-commerce. Dive into the realm of Prime selling, unlock its potential, and watch your business thrive. Happy selling!

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It only takes a few seconds to fill out the signup form and start trying out KwickMetrics.

14-day free trial. No credit card required, cancel at any time.

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