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Thu Nov 16 2017 09:25:44

Amazon Favors FBA over SFP to Ease Warehouse Strains?

By: Ina Steiner

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Is Amazon using a new tactic to ease holiday strains on its warehouses? That's the theory of sellers who are being disadvantaged in the Buy Box this week.

Amazon warehouses get full this time of year as sellers take advantage of the Fulfillment By Amazon program, which makes their items eligible for Prime's free, fast shipping for holiday shoppers. FBA is also the only way some sellers can list in the Toys and Games category during the holidays, adding to the inventory in Amazon fulfillment centers.

That's part of the reason Amazon created the Seller Fulfilled Prime (SFP) program - it lets sellers who can match Prime delivery standards participate in Prime without having to send inventory to its warehouses.

But this week, Amazon began favoring FBA inventory over SFP in the Buy Box, sellers are reporting - resulting in a dramatic slowdown in sales.

One seller explained: "In most cases it looks like SFP Prime is not being recognized as Prime on the detail page, although on the seller's list page it does show our listing as Prime. So a FBA seller who is 10% higher is winning the box for example."

One seller theorized it was a temporary move by Amazon to reduce inventory in its warehouses during the holidays. It leaves SFP sellers in a bind: "time to choose between drastically reducing our sales revenue or losing most of our margin," the seller said.

Whatever the reason, it demonstrates how much sellers are at the mercy of marketplaces who can make dramatic changes at any time with no notice, and the impact those decisions can have on sales and profits.




Comments (2) | Permalink

Readers Comments

Amazon Favors FBA over SFP to Ease Warehouse Strains?   Amazon Favors FBA over SFP to Ease Warehouse Strains?

This user has validated their user name. by: toolguy

Sun Nov 19 23:21:40 2017

Just another reason for small sellers to avoid Amazon at all costs.

I've never sold there and I have only bought 1 item on Amazon, a wireless router back in 2001.

No need to make Jeff Bezos richer then he already is. . .

Amazon Favors FBA over SFP to Ease Warehouse Strains?   Amazon Favors FBA over SFP to Ease Warehouse Strains?

by: Sierra This user has validated their user name.

Mon Nov 20 07:55:09 2017

I've been reading (mostly in Amazon-related FB groups) about FBA sellers going back to FBM because they're tired of the headaches associated with FBA.



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