Everything you need to know about the Amazon Seller Flex program

Amazon sellers currently fork out around 50% of their revenue to Amazon fees, with FBA costs alone consuming 20-35% of a product’s price. While using FBA remains optional, most sellers feel compelled to use it for the convenience and perks it offers.

But what if there’s another way? Enter Amazon Seller Flex, a program that lets you maintain the FBA advantage while keeping control of your inventory and reducing costs. Let’s dive into the details of this lesser-known Amazon program.

What is Amazon Seller Flex?

Amazon Seller Flex is a customized fulfillment model where you manage your own inventory while still accessing Amazon’s extensive logistics network. This innovative service puts you in charge of your business operations and warehouse management.

With Seller Flex, you’re responsible for:

• Managing your own warehouse
• Controlling your inventory
• Overseeing product packaging and orders

Amazon simply handles transporting merchandise from your warehouse to the customer’s doorstep. The program launched in India in 2015 and gradually gained traction with US sellers, though many merchants remain unaware of its existence.

Products fulfilled through Seller Flex still qualify for Amazon Prime, meaning you can offer that coveted two-day shipping. The program works especially well for heavy and bulky products since you control packing quality. You’ll also save on transportation costs to Amazon warehouses.

When you join Seller Flex, you gain access to Amazon’s Warehouse Management System (WMS) and transportation network, allowing you to schedule customer deliveries efficiently.

How to be eligible for Amazon Seller Flex?

Amazon Seller Flex operates by invitation only. Unlike other programs, you can’t simply sign up whenever you want. You must wait for Amazon to extend an invitation.

In some regions, like Europe, you can apply for consideration, but Amazon still evaluates your eligibility before reaching out if you qualify.

These are some of the basic criteria theorized to be needed for receiving an invitation. Take note that Amazon does not release a specific list, and Seller Flex account managers might have their own criteria.

• Monthly sales totaling $0.6 million
• Amazon Seller Rating of 90% or higher
• At least 1,000 units sold monthly
• Location in specific geographic areas

Beyond these basic requirements, there are also some additional criteria thought to be important:

Business plan

You must present a solid business plan demonstrating your understanding of the opportunity. Joining Seller Flex means running your own warehousing operations, not just storing inventory and forwarding it to Amazon.

You’ll handle daily pick and pack duties for your store’s orders, which means hiring staff and implementing efficient systems to ensure timely deliveries. Amazon needs to be convinced you can handle these responsibilities.

Hardware

Amazon verifies you have the necessary hardware to run a fulfillment warehouse, including:

• 2 computers (minimum Windows 7 OS with 2GB RAM)
• 2 barcode scanners
• 3 printers (shipping label printer, gift printer, and PDF invoice printer)
• Backup power supply (UPS or inverter)
• 2 stable internet connections
• Prime packaging supplies (Amazon provides these)

This hardware requires additional investment. You’ll need dedicated space for these items and must ensure they function properly.

Proper packing

Beyond a business plan and hardware, you’ll need:

• At least 6 employees to run the warehouse
• A labeled system for organizing products
• Dedicated packing station area
• Parking space for transport vehicles

Benefits of joining Amazon Seller Flex

The Amazon Flex program offers several advantages worth considering if you receive an invitation. Through Seller Flex, you can efficiently ship products worldwide using Amazon’s logistics capabilities while enjoying these benefits:

Greater control over business operations

Seller Flex shifts some control away from Amazon and back to you. You handle warehousing and order packing, while Amazon manages shipping to customers. This arrangement lets you control packing quality and ensure products reach customers in excellent condition.

Unlike FBA, where Amazon controls the entire fulfillment process, Seller Flex only utilizes Amazon’s delivery fleet. Managing your own warehouse means better inventory management and fewer discrepancies. You can quickly replenish low stock and avoid stockouts.

Seller Flex also puts you in charge of customer service and product returns. Undelivered, damaged, or returned items come directly to your warehouse, eliminating removal order fees or disposal costs from Amazon warehouses.

Direct customer communication helps you control situations better and process returns faster. You can even prevent negative feedback through exceptional after-sales service.

Improved customer satisfaction

Seller Flex offers a quicker, more profitable method of delivering products. Since you handle picking and packing, you ensure merchandise quality before shipping. With Amazon handling delivery, customers still get quick two-day shipping.

Customers win by receiving accurate orders quickly. Those located near your warehouse might even get next-day delivery. These operational improvements create satisfied customers who are more likely to purchase from you again.

Lower transportation costs

By eliminating shipments to Amazon warehouses, you significantly reduce transportation expenses. You don’t need to recall slow-moving inventory from FBA warehouses since everything stays in your facility.

Seller Flex differs from FBM because Amazon picks up orders from your warehouse and handles customer delivery. You leverage Amazon’s shipping volume, negotiated carrier rates, and delivery fleet without managing carrier relationships yourself. This substantially reduces shipping costs compared to independent delivery management.

Added credibility

Even though you handle fulfillment, products in the Seller Flex program still receive the FBA tag—a unique identifier that helps Amazon quickly locate items across warehouses.

The FBA tag signals to customers that their purchase will arrive within the promised timeframe. It builds trust even when shoppers aren’t familiar with your brand. Plus, you gain Amazon Prime benefits, attracting more customers to your products.

Don’t worry if you lack warehousing expertise. Amazon provides comprehensive training to help you manage inventory and use their system effectively. They’re invested in helping you meet their standards and succeed as a Flex seller.

Downsides of the Seller Flex program

Despite its advantages, the Seller Flex program has limitations worth considering before joining. It’s not ideal for all sellers and makes most sense if you already manage thousands of SKUs or sell specific types of products.

Key drawbacks include:

Expensive operational costs

Taking over responsibilities from Amazon requires investing in infrastructure to support those functions. Managing warehousing and fulfillment means securing adequate space and staffing to consistently meet Amazon’s standards.

As a Seller Flex merchant, Amazon expects you to fulfill orders within timeframes that enable speedy delivery. This typically requires at least six employees, possibly more depending on your order volume and frequency.

You’ll need a larger storage space for inventory plus a dedicated packing area. Equipment like computers and printers represent another expense, especially considering eventual upgrades. Without sufficient capital, these investments can be prohibitively expensive.

Restricted access

The Amazon Seller Flex program isn’t universally available. Amazon imposes strict requirements and limits participation through its invitation-only model.

Priority candidates typically sell expensive, bulky, or fragile products. If you sell affordable, small items, the program likely won’t benefit you much.

In Europe, Seller Flex is restricted to bulky products meeting specific dimensions: girth over 360cm or length over 175cm. Items must be multi-box or weigh over 23kg. Merchants must also sell at least 16 units before Amazon collects products.

These strict requirements exclude most sellers. If you don’t qualify, consider alternatives like Seller Fulfilled Prime, which allows you to fulfill orders while displaying the Prime badge if you meet certain criteria.

Limited geographic availability

Seller Flex only operates in certain regions. If you’re outside these areas, you won’t qualify. Contact Amazon support to check availability in your location.

High performance standards

Amazon requires consistent adherence to high-performance standards to remain in the program. Failing to meet these standards can result in program removal. Standards include proper loading and packing processes, minimum collection units, and timely order preparation.

Before applying, ensure you have efficient warehousing and fulfillment systems in place. Receiving an invitation suggests Amazon believes you can meet their standards.

Ideal products for Amazon Seller Flex

As mentioned earlier, Amazon Seller Flex isn’t suitable for every seller. It works best for specific product types:

Slow-moving items

FBA warehouses charge extra storage fees for products that remain on shelves too long. Self-fulfilling slow-moving inventory saves on long-term storage and removal fees that Amazon charges when you retrieve non-moving inventory.

Seasonal products

If your products are popular only during certain times, self-fulfillment makes sense. FBA imposes quantity limits restricting how many units you can store in their warehouse. During peak seasons, you might quickly run out of inventory or spend on frequent inbound shipments. Seller Flex eliminates stockout risks and reduces transportation costs.

Bulky and oversized products

Large, heavy, or bulky products incur higher storage fees in FBA warehouses. Using Seller Flex substantially reduces storage costs and gives you control over delicate packaging procedures.

Expensive and fragile items

For high-end luxury goods or other expensive items, controlling the process until the product reaches customers ensures proper handling and prevents quality issues, costly returns, and customer dissatisfaction.

Regardless of whether you choose FBA, Seller Flex, FBM, or another fulfillment method, carefully analyze the costs and their impact on profitability. If FBA remains financially sensible for your products, stick with it. Remember that Seller Flex requires significant investment and ongoing expenses, so ensure you can remain profitable while using this option.

Take control with the right fulfillment strategy

Amazon Seller Flex represents a powerful option for established sellers looking to gain more control while maintaining Amazon’s logistical advantages. While it’s not accessible to everyone, those who qualify can enjoy significant benefits: greater operational control, improved customer satisfaction, reduced transportation costs, and the credibility of the FBA tag.

However, the substantial investment in infrastructure, staffing, and ongoing operational costs means it’s not the right choice for every business.

The key is finding the fulfillment strategy that aligns with your specific business model, product types, and long-term goals. For many sellers, a hybrid approach that combines different fulfillment methods might provide the optimal balance of control and efficiency.

Whether you’re using FBA, considering Seller Flex, or managing your own fulfillment, Seller 365 can help your business thrive. 

With apps like SmartRepricer for automated pricing, InventoryLab for efficient prep and shipping, and 8 more apps for other parts of your business, Seller 365 gives you everything you need to succeed on Amazon in one affordable bundle. At just $69/month, you’ll save significantly compared to purchasing these tools separately.

Start your free trial today and discover how much more profitable your Amazon business can be with the right tools supporting your strategy.