Gaining Amazon’s Prime badge should be every seller’s initial goal when first selling on the marketplace. Owning the blue badge tells consumers that your product can be shipped and delivered much faster than those without it and almost guarantees that your product will win the buy-box further improving visibility of your listing. Moreover, consumers are more likely to trust a seller which holds the Prime badge over one without so you will find your conversions and customer spend will increase in relation to your competitors.
But how does a brand achieve the Amazon Prime badge? Read on to find out…
Since vendors sell straight to Amazon, all their products will automatically be Prime badge eligible as they will be sold by Amazon via their own warehouse and distribution service. However, for those with a seller account, all is not lost. There are 2 ways in which a seller can get the Amazon Prime badge. These two options are Fulfilment by Amazon and Seller-Fulfilled Prime. Both of these are shipping options because the key factor regarding Prime badge eligibility is speed of delivery.
Fulfillment by Amazon (FBA)
The most common way to get the Prime badge is to use FBA. Sellers send their products to one of Amazon’s fulfilment centres where Amazon will then store and ship it to the consumer. Using their own distribution services, Amazon guarantees that your products will comply with Prime’s quick delivery guidelines and therefore will apply the Prime badge to your ASINs enrolled in the FBA service. Overall, FBA guarantees sellers will get the Amazon Prime badge because Amazon does the shipping for you.
Seller-Fulfilled Prime (SFP)
The other way to achieve the Prime badge is via SFP. This is a programme whereby the seller ships their products to the consumer just like Fulfilled By Merchant (FBM) sellers. However, unlike FBM, the seller must have a track record (99%) of distributing their products to sellers on time and have a cancellation rate that is less than 1%. Ultimately, Amazon must be fully convinced that you can give amazing customer service and fulfil your orders fast and efficiently before they will reward you the Prime badge. You must work to remain eligible however or risk losing the blue badge and having to earn it again.
Which Amazon Prime programme is best?
Similar to comparing Seller Central & Vendor Central, neither option is better than the other. Rather, it all depends on your product and circumstances. Before choosing an option it is important to consider the sales strategy that you have and the way your shipping logistics will work. For example, if you already have your own warehouse and shipping for selling off-site then SFP would seem the fitting choice whereas if you needed somewhere to store your products or you are just starting up, then FBA would seem a likely candidate to enrol your products in. Finally, you may decide to take a hybrid approach in that you use FBA for some products and SFP for others.
Read our blog for a full breakdown of the pros and cons of the 2 Prime programmes today to decide for yourself which one is best for your ASINs.
Are there any disadvantages to having a Prime badge?
We have established that having the Amazon Prime badge is a sure-fire way to have more customers engage with your products on Amazon. Not only does the Prime badge represent to the seller a speedy delivery, it’s also a way of gaining their trust as they view you as an established, reliable seller. Plus, if your competitors are selling with a Prime badge and you’re not, you’re likely to lose some sales to them, no matter how much better value you consider your products to be. People want things fast and want things now and Amazon can help your company to give the people what they want, with their Prime badge offering. But are there any disadvantages?
The main disadvantages that come with having a Prime badge are usually related to the seller-fulfilled prime approach. The Prime badge disadvantages can come in the form of the pressure to deliver the Prime orders yourself, in the two-day limit that is stated in the Prime badge guidelines and having to foot the total cost of shipping. Another disadvantage is being solely responsible for when things go wrong (which sometimes they do). For an Amazon Prime badge FBA seller, mistakes and issues with couriers are dealt with by Amazon, but if you are an SFP seller, any (sometimes inevitable) mishaps are yours to deal with.
Usually, the advantages of having a Prime badge outweighs any small inconvenience here and there but if you are SFP seller with a Prime badge and would like some help and advice from the Amazon Prime badge experts, then please do not hesitate to contact Molzi, today.
Does your product have the Amazon Prime badge, but sales still need help?
The Prime badge isn’t the be-all and end-all of selling on Amazon. Even if you have the blue badge, there might be another seller who has it too. Therefore, if your listings aren’t optimised then you may still lose out on winning the buy-box. Our Amazon data experts have technology in place which can tell you exactly what it is about your listing that is letting you down. Whereas our content team and account management crew can fix it to ensure that the buy-box is yours for the taking. Contact us today for a free audit and find out what we can do for your brand.