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EP 10: Driving Growth with Amazon SFP (Seller Fufilled Prime) with Matt Snyder
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🎙Robyn Johnson & Abe Chomali sit down with Matt Snyder to discuss Seller Fulfilled Prime (SFP), Fulfilled by Merchant (FBM), and how brands can optimize their fulfillment strategies beyond Amazon FBA. They explore the challenges, benefits, and best practices for implementing SFP and FBM effectively.
🔑 Key Takeaways
🚀 Maximizing Amazon Fulfillment Options
- While FBA is ideal for most brands, SFP and FBM can offer cost savings and flexibility in certain cases.
- SFP works well for high-value, bulky, seasonal, and slow-moving products.
- Amazon’s strict performance metrics for SFP require careful execution.
📦 When to Consider Seller Fulfilled Prime (SFP) or FBM
- Inventory Gaps: If stockouts frequently impact sales, FBM can serve as a backup to maintain listings.
- High-Value & Large Products: Jewelry, furniture, and oversized goods can save on fees with FBM or SFP.
- Seasonal & Limited Inventory: FBM prevents overstocking FBA during seasonal peaks.
- Control Over Shipping: SFP allows sellers to manage customer experience better than FBA.
📊 Cost Considerations & Choosing a 3PL
- If fulfillment fees exceed 38% of the total sale price, SFP or FBM might be more cost-effective.
- Brands must evaluate carrier rates, storage costs, and shipping speed when selecting a third-party logistics (3PL) partner.
- Recommended 3PLs:
- DaVinci Micro Fulfillment – Nationwide locations & strong carrier relationships.
- Ware2Go (owned by UPS) – Scalable fulfillment with UPS benefits.
⚠️ Common Challenges & Risks
- SFP Approval Process: Requires a 100-order prequalification and a 30-day trial period with strict shipping metrics.
- Maintaining SFP Status: Amazon enforces a three-strike policy, so brands must proactively manage shipping delays.
- Weekend Deliveries: Amazon requires one weekend day for SFP shipments—brands must plan accordingly.
🔗 Helpful Links from the Episode
🎯 Final Thoughts
- Brands should analyze their fulfillment costs and consider SFP or FBM for better inventory control and cost savings.
- FBA remains the best option for most products, but alternative fulfillment strategies can reduce risk and increase flexibility.
- Partnering with the right 3PL is key to maintaining fast, reliable shipping outside of Amazon FBA.
If done correctly, Seller Fulfilled Prime and FBM can be game-changers for brands looking to optimize fulfillment beyond Amazon!
Chapters
1. EP 10: Driving Growth with Amazon SFP (Seller Fufilled Prime) with Matt Snyder (00:00:00)
2. Welcome & Matt’s Background (00:00:31)
3. Getting Started with Amazon (00:01:03)
4. Meeting at Prosper & Sharing Knowledge (00:03:40)
5. Seller Fulfilled Prime vs FBA (00:05:56)
6. How Brands Can Optimize Fulfillment (00:08:09)
7. Case Study: FBM as a Revenue Saver (00:09:44)
8. Ideal Brands for Seller Fulfilled Prime (00:13:09)
9. When Merchant Fulfilled Makes Sense (00:15:41)
10. Shipping Considerations & Cost Analysis (00:17:55)
11. Enrolling in Seller Fulfilled Prime (00:22:44)
12. How Brands Should Evaluate Fulfillment (00:29:17)
13. Holiday & Warehouse Considerations (00:32:16)
14. The Power of Connections in Business (00:38:45)
15. Lessons from Working with Mark Cuban (00:44:44)
16. What Leads to Business Success? (00:50:48)
17. Where to Find Matt Snyder (00:55:55)
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