Amazon has a plan to expand the number of items eligible for free Prime shipping that won't require it to build more warehouses
the following year, when it disclosed less than 16% of SFP orders in the US were meeting the two-day shipping promise.
Sellers who join SFP will have to pass a trial period to demonstrate they are able to meet the program's requirements,. Those requirements include shipping over 99% of their orders on time, having an order cancellation rate of less than 0.5%, and meeting the one- to two-day delivery targets. Amazon told sellers that it will share more enrollment details and updated requirements"in the coming months.
The reopening of SFP enrollment could be mutually beneficial for Amazon and third-party sellers, according to Steve Denton, the CEO of Ware2Go, a UPS-owned fulfillment and warehousing company. It can offload some of the fulfillment pressure from Amazon, while offering sellers more customer data and expanding Prime-eligible products, he said.
"They're demonstrating how relying on third-party sellers to extend their product catalog allows them to build out an endless aisle and attract more shoppers without increasing their overhead costs," Denton told Insider. Amazon has been in pullback mode over the past year, as growth slowed down and costs increased. Since January 2022, Amazon has reduced roughly 46 million square feet of planned warehouse capacity, resulting in up to $2 billion in cost savings, said Marc Wulfraat, President and Founder of MWPVL, in a recent call with brokerage firm Evercore. Those cutbacks were in planned and potential capacity expansions, not existing capacity.
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