Amazon Seller Fulfilled Prime: requirements and benefits
Amazon launched Seller Fulfilled Prime (SFP) at the end of 2015. Since then, online merchants that enrolled in Amazon’s program have seen significant growth in sales, some even up to 100 percent.
For readers unfamiliar with SFP, merchants selling on Amazon can offer customers Amazon Prime shipping options that are delivered through Amazon’s own logistics services and warehouses. SFP provides two key benefits:
1. Access to Amazon’s lucrative and sizeable Prime customer base – 63 million shoppers around the world
2. Significant savings on shipping and storage thanks to Amazon’s fulfilment centres
Not every online seller could take advantage of the initiative at the beginning. Only those with the best seller ratings were originally invited by Amazon.But many more have since joined SFP since Amazon refined its model and have seen their businesses grow at a faster pace.
How to join
Those already part of the program must ensure they keep their metrics up to the required standard. Sellers that want to qualify must organise their logistics to win the much coveted Prime badge.This indicates to Prime subscribers that their product represents great value and can be delivered free of charge.
Success with the SFP program also requires sellers to implement efficient processes across every aspect of their business, from warehouse management and stock control to fulfilment and customer service. For this, they need smart ecommerce tools that can centralise and automate all their operations. If the merchant’s chosen platform and solutions fully integrate with SFP processes as well, the retailer should see even more benefits.
Among these benefits is the ability to access multi-courier support to fulfil delivery promises, particularly crucial for sellers who want to take advantage of Black Friday, Cyber Monday or Christmas selling peaks. Sellers also need analytics that offer a 360° view to constantly measure bestselling products, less successful stock, profit margins, stock levels, returns and delivery times.
What’s on the horizon?
The popularity of Seller Fulfilled Prime has prompted Amazon to hold new enrolments until 2017. This is so the company can strengthen its infrastructure to manage the additional transactions. This gives non-SFP sellers the chance to gear themselves up for qualification when Amazon opens the SFP gates again.
But how can multichannel merchants get themselves noticed and take advantage of the massive opportunity offered by SFP?
One way is to set up new shipping templates allowing 1-2 days shipping and extra charges for certain geographical locations. This ‘premium shipping’ option is an important metric in winning the Buy Box.
That said, sellers should keep in mind that winning the Buy Box is dependent not just on price and delivery, but also on customer experience and the seller’s track record. Make sure customer service is efficient and encourage loyal customers to leave positive reviews after purchases.
Once the merchant has processed enough premium shipping orders, they can submit a list of items they would like to be Amazon Prime labelled If they sell enough products within Amazon’s parameters, they are given the Prime badge.
Whether a company is already using the ‘Fulfilment by Amazon’ service, is an Amazon seller managing their own warehouse and fulfilment, or doesn’t even sell on Amazon yet but would like to, one thing is clear, merchants using the marketplace must establish efficient operational practices based on fit-for-purpose technology.
It is crucial to have tools capable of managing inventory and stock control, back office automation and sales order processing, right through to meeting customer demands for delivery.
SFP is an opportunity not to be missed for multichannel merchants, but the most successful are those that can guarantee efficiency, competitiveness and consistently excellent performance time after time.
By Dan Burnham, Head of Customer Success at Volo Commerce
More than half of FTSE 100 execs suffer pay cuts, freezes
Pay increases for many executives at the largest UK firms have been put on hold since the start of the pandemic with more than half of the FTSE 100 CEOs having had their salaries frozen in 2021, according to new research from PwC.
The research, based on PwC’s analysis of the first 50 FTSE 100 firms to publish their 2021 annual remuneration reports, reveals that 53% of CEOs and 52% of CFOs have had their pay reviews put on hold, compared to 35% and 30%, respectively, last year, pointing to the pandemic as the main reason.
According to Phillippa O’Connor, reward and employment leader at PwC, the current environment and impact of the pandemic has clearly led shareholders to sharpen their pencils when reviewing executive pay levels this year.
“It is clear from the pay outcomes we have seen to date in the FTSE 100 that companies have exercised restraint when it comes to both determining outcomes for the 2020 performance year and settling pay on a forward-looking basis for 2021,” says O’Conoor.
Bonuses, grants and pensions also affected
But that’s not all. Around a third (31%) of companies either waived, cancelled or reduced their 2020 annual bonuses, with the average payout dropping from just uhnder £1.1m to £843,000.
When it comes 2021 long-term incentive plan (LTIP) grants, these have also been revised in light of the economic impact of the pandemic with 45% of firms making some adjustment to their award, including retaining discretion to adjust outcomes at vesting in respect of windfall gains, reducing grant size, delaying the grant, and even canceling the award altogether.
The study shows that pension levels for incumbent CEOs remain at 15% of their salary, falling to 10% for new hires, bringing them in line with the wider workforce. Eight out of 10 FTSE 100 companies will have aligned incumbent pension levels with those for the wider workforce by the end of 2022.
O’Connor warns that moving forward into AGM season, there is likely to be added scrutiny around any pay rises that are greater than those for the wider workforce and on incentive outcomes that are “either not aligned with business performance or do not take into account the company’s approach towards matters such as diviends and government support”.
What announcements did UK's big firms make?
Back in April 2020, as the pandemic was just getting started, a number of UK companies, mainly insurance and banking stepped forward to review remuneration packages in response to the economic implications of the COVID-19 crisis.
British insurance giant Aviva announced that basic pay increases for its executive directors and the Aviva leadership team would be paused, while the executive directors of Prudential offered that their salaries be reduced and RSA confirmed its exec directors and executive committee would not be receiving cash bonuses for the current year.
The same was true in banking and finance with TSB announcing that its 10-strong executive committee would give up their bonuses in 2020, while Barclays said its chief executive, finance director and chairman would each give a third of their fixed pay for the next six months to charities. Lloyds cancelled its bonus payments and pay reviews in 2020
Other big UK firms including Ryanair, Taylor Wimpey and Rentokil all committed to reducing their executives pay packages.