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How To Sell On Amazon Prime

Almost everyone has been on the Amazon marketplace, and there is a high tendency that you have come across the Prime badge on some product listings. As a buyer, the benefits are clear; if you have a prime membership, you enjoy 2-day shipping whenever you order a product.

The Prime badge also offers sellers some advantage; it is considered a must-have for anyone who wishes to run a successful sales business on Amazon. Therefore, if you want Amazon's large customer base to be useful to you, then you should optimize the Prime package. The Prime service on Amazon has over 112 million members, and 51.3% of them are in the United States. 

In most product categories, items with the Prime badge record more sales. A seller with a Prime badge is reputed to be trustworthy. This means that his brand and products are trusted, and he has an excellent customer support system. In truth, most Prime buyers prefer to purchase items with the Prime badge.

Would you like to discover how to sell Prime on Amazon and maximize sales with the system? Most sellers have a popular misconception that you need to use Amazon FBA before you are awarded the Prime badge, but this isn't exactly true. You can earn an Amazon Prime badge in either of three ways (which will be discussed later in the guide).

Related article: How to sell on Amazon

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In the subsequent sections of this article, we will be discussing Amazon Prime in detail, the benefits, the different ways of selling, and so forth. So, let's get to it.

What Is Amazon Prime?

Amazon Prime is a premium service available to both buyers and sellers on Amazon. As a buyer, you become a member by paying an annual subscription fee of $119. However, there is a package for students that allows them to pay a lesser amount, which is $59 annually. If you choose to opt for monthly subscriptions, they are priced at $12.99 and $6.49 for typical buyers and students.

Sellers do not have to pay to earn the Prime badge, but they have to meet a list of requirements structured by Amazon. Being a Prime subscriber offers buyers various benefits ranging from reading exclusive books, special streaming, and other shopping benefits. For instance, a buyer is given a 30 minutes head start to access lightning deals before non-Prime members.

A seller can operate seamlessly with a Prime badge from any location; however, a buyer's location determines his eligibility for Prime membership. If you are eligible, you can enjoy 2 hours of shipping, two-day maximum delivery time, release-date delivery, and Saturday shipping.

Why Sell On Amazon Prime?

Amazon Prime offers many perks ranging from a large and loyal customer base to a better chance of winning the Buy Box . The numerous benefits of selling on Amazon Prime include:

  • Amazon Prime Has Loyal Members

Since Prime members are required to pay an annual or monthly fee to speed up their deliveries, they have a higher tendency of purchasing products because they wouldn't want their money to go to waste. Statistics show that 60% of Amazon Prime members are brand loyal; however, we cannot say the same for non-Prime members because their score is at 39%.

Also, 67% of Prime members pointed out they would always shop on Amazon if they could buy items from a single store. For non-Prime members, the score is at 32%.

  • Amazon Prime Uses Its Messaging Tools to Advertise Your Product For You

We all know how difficult it is to retain customers and make them buy from you again. But we cannot overemphasize the importance of having repeat customers for your business. When you have repeat buyers, you spend less on marketing. 

Also, there is a high tendency that your repeat customers will spend more than new buyers. Over 82% of Amazon Prime members hold the company in high esteem, and about 84% of them cherish shopping on the platform.

  • Members Of Amazon Prime Are Cash-Ready

Not only is Amazon the first choice for Prime members, but they also have no issue with spending money on the site during sales events like Prime Day and Black Friday. About 60% of Prime members take part in the Prime Day sales deals offered annually.

When it involves regular shopping, over 85% of Prime users make a minimum of one purchase per month on Amazon. Also, 49% of users buy products at least once per week. The figures are lower for non-Prime members.

  • Amazon Prime Members Have No Problem With Spending More

Buyers who subscribe to the Prime program need not hit a particular purchase amount before they become eligible for free shipping. The case is different for non-Prime members as they have to spend a minimum amount to qualify for free shipping. 

Irrespective of the price of a product, if it has a Prime badge, members are entitled to free or 2-day shipping. Over 59% of Prime buyers have no problem with spending more on a particular product if the shipping will be expedited. On the flip side, about 31% of non-Prime subscribers are willing to take such actions.

  • Amazon Prime Gives You An Increased Chance Of Winning The Buy Box

Although having the Prime badge increases your chances of getting more customers, the Buy Box also plays an important role. According to statistics, 83% of the sales on Amazon are made through the Buy Box. 

To this effect, winning a Buy Box has become exceedingly important. Also, Amazon has pointed out being a Prime seller improves your product's chances of being customers' main option.

3 Ways To Sell On Amazon Prime

As it concerns being a third-party Prime seller on Amazon, there are different options to explore. Mentioned below are the three ways to sell on Amazon Prime:

Seller Fulfilled Prime (SFP)

In this program, merchants are allowed to take care of their order fulfillment and shipping; however, their products still retain the Prime badge. The seller ships the items from his warehouse through verified carriers. Alternately, he can engage the services of a 3PL (third-party logistics service provider).

To qualify as an SFP member, you must pass through the qualification process and adhere to stringent rules. You must never fall below the set performance metrics if you wish to stay on the program. Sellers who handle their shipping enjoy more profitability with this method. 

To become an SFP member, you must:

  • Have an order cancellation rate below 0.5%
  • Timely ship over 99% of your orders
  • Provide premium shipping for your buyers
  • Ship items with Amazon-verified carriers
  • Have 99% of your orders carried out with Amazon's Buy Shipping Services 
  • Adhere to the platform's returns and refunds policies
  • Be able to fulfill orders within a day
  • Allow Amazon customer service to handle inquiries

You must understand that there isn't a specific time frame for SFP qualification. Also, you will not get a Prime badge during the trial period. However, at the completion of your trial process, you will automatically be enrolled, and the Prime badge will be displayed on your listings.

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Fulfillment By Amazon (FBA)

This is considered as the easiest way to make sales on Amazon Prime. Irrespective of the business model you apply, being an FBA seller increases your chances of qualifying for Amazon Prime. Here, you need not go through any trial period. 

All you need to do to obtain the Prime badge is to have an excellent seller performance. Although the platform does not stipulate the exact requirements for an FBA seller to get the Prime badge, they emphasize the following factors:

  • Your order defect rate must be below 1%
  • You must comply with the platform's listing and product policies
  • You must observe Amazon's inventory storage limits

Vendor Central

Being an Amazon vendor means you are one of Amazon's wholesale suppliers; therefore, you do not sell directly to customers on the marketplace. You can only be invited to become a member, meaning there are no set out rules to follow. This program is most beneficial for manufacturers and established brands.

How to Become Amazon Prime Seller

Have you been looking for how to sell an item on Amazon Prime? You've come to the right place. In truth, getting the Prime badge for your products is relatively easy. However, if you want to get faster approval, you should follow the tips below.

Become An FBA Seller

As mentioned earlier, Amazon FBA increases your chances of getting approved as a Prime seller. If you want to become a Prime seller as fast as possible, opt for the FBA program. There are less stringent rules, and as long as you maintain an excellent seller performance, you are good to go.

You Need To Have Good Seller Metric

To become eligible for Prime membership, you must have an excellent reputation as a seller. Depending on the shipping program you choose, it might take a while before you are approved. However, having positive seller feedback increases your chances of getting a Prime membership fast.  

How Much Does It Cost?

Your running cost as a Prime seller is determined by your fulfillment method. If you choose to enroll in the FBA program, then you will have to pay FBA fees , he amount of money you pay is dependent on:

  • Your products' dimensions
  • The shipping weights
  • The weight of your packaging
  • Your product's size tier

In contrast, if you fulfill orders through the Fulfillment by Merchant (FBM) process, there won't be any need to pay the additional fees. You must also understand that your labor or shipping costs may increase in a bid to stick with Amazon's stipulated delivery time frame. 

Final Thoughts

Being an Amazon Prime seller allows you to reach out to elite customers, thereby recording faster and higher sales. You can make use of any of the three processes to get on the Prime program. Also, evaluate your business to what's fit for it before moving to get your Prime badge.

FAQ

How Do I Sell On Amazon Prime Now?

Prime is only available to Amazon Prime members. For buyers, they have to pay a monthly or an annual membership fee to be on the program. On the other hand, sellers have to work hard to get a Prime badge on their listings. 

As a Prime seller, you have to keep up with the free one-day shipping, free two-day shipping, and same-day shipping for buyers within the eligible locations. This means that you must ensure that your buyers' convenience isn't distorted. 

You also need to understand that the features and perks of Amazon Prime Now can only be enjoyed by people living in big cities; however, Amazon has been widening its tentacles. If you are a new Amazon seller or you have been trying to join the elites in the Prime program, here are the things you should do:

  • Ensure you carry out thorough product research as it will help you find a product with less competition and high demand.
  • When you have found out what you wish to sell, you need to find a reliable supplier to manufacture your product. 
  • Make sure your product listing is highly optimized.
  • Set up a reliable launch plan to get good reviews. This will entail running promotions, doing follow-ups through emails, and organizing pay per click (PPC) campaigns.

Can I Sell On eBay With Amazon Prime Shipping?

Using Amazon Prime to sell products on eBay is a relatively simple process. Read related article about selling on Amazon vs. eBay comparison.

Here is what you should do:

  • Search for underpriced items on Amazon and ensure that they are sold for a higher price on eBay. Also, the merchant must be offering free shipping.
  • Create a professional eBay listing for the items in question. Your product description must be clear and neatly arranged. Further, there must be clear images of the product you're selling.
  • When a buyer places an order for the product on eBay, you purchase it on Amazon and ship it to the buyer. On the checkout page, make sure you mark the product as a gift so that the buyer won't know the actual cost of the product.

That's the simple process. You can repeat the process as many times as you wish to make more profit.