Amazon Seller Fulfilled Prime (SFP): What It Is and How It Differs from FBA

Amazon Seller Fulfilled Prime (SFP) is a program that allows sellers to fulfill Prime-eligible orders from their own facilities instead of using Amazon’s Fulfillment by Amazon (FBA) warehouses. For many merchants this option combines the customer trust and visibility of the Prime badge with the flexibility of managing inventory, packing, and shipping in-house or with a third-party logistics partner (3PL).

At a high level, SFP is about meeting Amazon’s service-level expectations for Prime orders while retaining control over fulfillment. That means sellers must reliably ship orders with the delivery speeds, tracking quality, and low cancellation rates Prime customers expect. When executed well, SFP can be a strategic choice for sellers who want to preserve branding, avoid FBA storage fees for slow-moving SKUs, or offer unique packaging and inserts.

How SFP differs from FBA

• Fulfillment location: FBA uses Amazon’s fulfillment centers to store and ship inventory; SFP uses the seller’s own warehouse or an approved 3PL.
• Control: SFP gives sellers direct control over picking, packing, and returns processing; FBA centralizes these activities under Amazon’s operational processes.
• Fees and cost structure: FBA charges storage and fulfillment fees, often beneficial for high turnover items but costly for long-term storage. SFP shifts operational costs to the seller (carrier fees, labor, packaging, and technology) and can be cost-advantageous for certain SKUs or brand-sensitive products.
• Inventory distribution: With FBA, Amazon distributes stock across their network for faster delivery. SFP typically ships from one or several seller locations, so sellers must plan inventory placement to meet regional demand and Prime delivery windows.

Benefits of SFP

• Prime badge retention: Sellers keep the Prime label, which drives conversion and visibility.
• Brand control and customer experience: Sellers can include custom packaging, inserts, and branded packing slips that FBA does not allow.
• Cost flexibility: SFP may reduce costs for oversized, slow-moving, or high-value items where FBA storage or fees would be prohibitive.
• Returns handling: Direct control of returns lets brands recover resalable inventory and manage customer service more closely.

Limitations and challenges

• Operational complexity: Sellers must meet Amazon’s strict delivery performance requirements, manage carrier relationships, and ensure accurate, timely tracking updates.
• Scaling demands: During peak seasons like holidays, sellers must scale labor, packaging supplies, and carrier capacity to maintain Prime-level delivery promises.
• Geographic reach: Shipping from a limited set of locations can make it harder to hit two-day or same-day delivery promises across all regions without multiple fulfillment sites or strategically placed 3PL partners.
• Strict performance thresholds: Amazon monitors metrics such as on-time delivery, valid tracking, and cancellation rates; failing to maintain standards can result in SFP removal.

Who should consider SFP?

• Sellers who want the Prime badge but need direct control over packaging and brand presentation.
• Sellers with specialized or high-value products where FBA fees are uneconomical.
• Businesses with reliable, scalable fulfillment operations or established 3PL partners that can meet Prime SLAs.
• Companies looking to protect intellectual property or limit inventory exposure in Amazon’s network.

Real-world example

A boutique electronics brand sells premium headphones. They want luxury packaging and a personalized unboxing experience—something FBA limits. By qualifying for Amazon Seller Fulfilled Prime (SFP), they keep the Prime badge (helping conversions) while shipping from their own facility using a trusted carrier. They maintain strict internal processes for same- or next-day dispatch, track delivery performance, and handle returns in-house to recover refurbished stock and maintain margins.

Final considerations



SFP can be a powerful tool for sellers who value control and customer experience while still leveraging Prime visibility. It’s not a turnkey solution: it requires strong operational discipline, robust shipping partnerships, and continuous monitoring of Amazon performance metrics. For beginners, the recommended approach is to pilot SFP with a limited SKU set, monitor metrics closely, and expand only after proving consistent delivery and tracking performance.

Remember to check the latest Amazon Seller Central guidance for current SFP enrollment rules and performance thresholds—Amazon updates program details periodically.