Prime managed by the seller

One of the reasons why Amazon has so many loyal customers is its high standards in terms of logistics operations. Through the FBA (Fulfillment by Amazon) option, Amazon guarantees fast order delivery, efficient customer service and easy returns, if desired. However, FBA is not the only program that meets these standards, which increasingly seem to be the new norm:

With the Seller Managed Prime program, Amazon launched a program that is in line with these standards, but allows sellers to manage their own logistics. 

1. What is vendor-managed prime?

Seller-managed Prime, or "seller fulfilled prime" is a program that allows merchants to make domestic, Prime-branded deliveries from their own warehouses. This program was launched in 2015, and is a good option for those advertisers who want to continue to manage their own logistics, and at the same time, take advantage of the privileges offered by Amazon Prime.   

2. Why use vendor-managed prime?

Today, Amazon has more than 200 million prime customers worldwide. These subscribers enjoy a number of benefits, one of them being free and 1-2 day delivery of products. With the seller-managed prime program, Amazon offers sellers the opportunity to reach this huge base of loyal customers, but without losing control over their logistics, as would be the case with FBA (Fulfillment by Amazon). 

In this sense, all those enrolled in this program will be able to offer prime deliveries - free deliveries within 1-2 days - and thus reach more customers and increase their order volume. All without relinquishing control over their logistics operation. 

Requirements: 

To be part of this program, Amazon requires sellers to meet a series of requirements to ensure quality in terms of shipping, customer service, or returns:

• Have an active account in good standing of the professional sales plan.
• To have a national warehouse, from which orders will be managed.
• Ship more than 99 % of orders on time
• Maintain order cancellation rate below 0.5%.
• Utilize shipping label purchase services for the program on at least 98% of orders
• Deliver orders with one of the carriers that Amazon has approved for this program. 
• Complying with Amazon's return policy
• Letting Amazon handle all customer service inquiries
• Passing the probationary period 

Costs: 

There is no cost to be part of the program itself. However, Amazon requires you to purchase shipping labels through Seller Central with one of their authorized carriers at their established prices. In this way, Amazon ensures that Prime's high customer satisfaction expectations are met.

In Spain, Amazon currently authorizes SEUR and Correos Express to ship products enrolled in the prime program managed by the seller. 

3. How to become part of the vendor-managed prime program?

In order to be part of the program, Amazon requires passing a probationary period to demonstrate that the seller is able to meet the requirements of excellence for Prime logistics and customer satisfaction. 

During this time, the Prime badge will not be displayed on enrolled products.

During the probationary period, the following performance requirements must be met: 

• Deliver 25 shipments on time, for at least 99% of Prime orders. 
• Purchase shipping from authorized Prime carriers via "buy shipping" in Seller Central for at least 98% of Prime orders. 

Once this period has passed, the Prime seal will be activated on all products that are "enrolled" in the program. You will have to set a daily Prime order limit, the maximum number of Prime orders you can reliably ship each day and a cutoff time. 

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