FBAFulfillment by Amazon
FBA lets sellers ship inventory to Amazon's warehouses. Amazon handles picking, packing, shipping, returns, and customer service — and products become Prime-eligible.
What is FBA?
With Fulfillment by Amazon, you send inventory to Amazon's fulfillment centers in bulk. When a customer orders, Amazon's warehouse staff pick, pack, and ship the order on your behalf, typically within 1–2 days. Your products automatically receive the Prime badge, which significantly improves conversion rates because Prime members — who represent the majority of Amazon's high-value customers — filter for Prime-eligible products by default.
FBA fees break into two components: a per-unit fulfillment fee (based on the product's size tier and weight, typically $3–$8 for standard-size items) and a monthly inventory storage fee (charged per cubic foot of space your inventory occupies, currently $0.78/cu ft standard season, $2.40/cu ft October–December). Additional fees apply for long-term storage (items stored over 365 days) and removal orders.
Amazon's FBA program also handles customer returns and provides 24/7 customer service on your behalf for those orders. This removes a significant operational burden from sellers, particularly during peak seasons when return volumes can overwhelm in-house teams.
Why it matters for sellers
FBA is the single most impactful decision most Amazon sellers make. The Prime badge alone has been shown to improve conversion rates by 15–30% compared to equivalent non-Prime listings. FBA listings also have a structural Buy Box advantage, making them far more likely to win the default purchase button on shared listings.
Beyond conversion, FBA enables you to scale without building a warehouse and logistics operation. You can sell 10,000 units per month from your living room because Amazon handles all physical fulfilment. This capital-light scaling is one of the defining features of the Amazon seller model.
How to use FBA
Create FBA shipments in Seller Central under Inventory > Send/Replenish Inventory. Amazon will direct you to specific fulfillment centers (you may need to split one shipment across multiple FCs). Label each unit with a scannable FNSKU label (Amazon's barcode for FBA) — either printed and applied yourself, or through Amazon's FBA Label Service for a per-unit fee.
Manage FBA inventory proactively. Monitor the Inventory Performance Index (IPI) score in Seller Central — falling below 400 restricts how much inventory you can store. Set reorder alerts based on days of supply remaining (aim for 45–60 days of stock on hand). Use the 'Restock Inventory' tool to plan shipments aligned with sales velocity.
Real-world example
You manufacture 500 units of a silicone phone stand. You ship them to an Amazon FC in Kentucky. Amazon stores them, and when customers order, ships each one via Prime within 2 days. You're charged $4.20 per unit in fulfillment fees and $12/month in storage. Without FBA, you'd need to lease warehouse space, hire staff, and negotiate carrier contracts. With FBA, your total fulfilment cost is transparent, predictable, and scales with your sales.
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Frequently asked questions about FBA
What does FBA cost?
FBA costs vary by product size and weight. A standard-size item (under 1 lb) typically incurs $3.22–$4.99 in fulfillment fees per unit. Storage fees are additional (roughly $0.78/cubic foot per month outside Q4, $2.40 in Q4). Use Amazon's FBA Revenue Calculator to get an accurate estimate for your specific product.
Is FBA better than FBM?
For most sellers, FBA wins: the Prime badge improves conversion, Buy Box eligibility improves, and fulfilment operations are delegated to Amazon. FBM makes more sense for very large/heavy items where FBA fees are prohibitive, oversized products, hazardous materials that FBA doesn't accept, or sellers with existing fast-fulfilment infrastructure.
What is an FNSKU and do I need one for FBA?
FNSKU (Fulfillment Network Stock Keeping Unit) is Amazon's unique barcode for FBA items. Every unit sent to an Amazon FC must have an FNSKU label so Amazon can identify which seller it belongs to. You print FNSKU labels from Seller Central and apply them over existing barcodes, or pay Amazon's labelling service to do it.
Can international sellers use FBA?
Yes. Amazon has FBA programs in North America, Europe, Japan, Australia, and more. You can sell in multiple marketplaces using programs like FBA Export (selling internationally from domestic inventory) or Pan-European FBA (spreading inventory across European FCs). Each marketplace has its own registration, VAT obligations, and fee structure.