Does Amazon Prefer FBA Seller to SFP Seller in This Holiday Season?
"Is Amazon using a new tactic to ease the warehouse tension in its holiday season?" This is the theory of some sellers who has an unlucky experience in competing for "Buy Box" this week.
Amazon's warehouses are always full at this time of the year as sellers all want to take full advantage of Amazon's FBA programs to have their products qualified to Prime's free fast requirement. The FBA is also the only way sellers can get their products which is in the toys and game categories on sale during the holiday season, that's resulat in an increasing to inventory of Amazon's logistics centers.
This is also part of reason that Amazon launches the Seller's Self-Sourcing Prime (SFP) program – which allows sellers who meet Prime delivery standards to participate in Prime services without having to send inventory to the Amazon warehouse.
But this week, some Amazon sellers reported that Amazon started to favor FBA inventory products more than SFP products in wining for Buy Box, resulting in a significant slowdown in sales.
One seller explained: "In most cases, it appears that the SFP Prime product is not identified as a Prime product on the details page, but it still shows as Prime on the seller's listing page. As a result, a FBA product whose price is 10% higher than him won the Buy Box,but not him. "
One seller speculated that this was an interim adapted by Amazon to reduce its warehouse inventory during the holiday season. This put SFP sellers in a dilemma: "Now we have to choose between drastically reducing sales and losing most of our profits," the seller said.
Whatever the reason, this shows how many sellers are being "dominated" by the Amazon platform. Amazon can make huge changes at any time, without any notice, but these decisions can have a huge impact on seller sales and profit