What is Amazon FBA?
FBA (Fulfillment by Amazon) is the service where Amazon stores, packs and ships your products and handles customer service and returns for those orders. Here's how it works, what it costs and when it's worth it.
How FBA works, step by step
The path of a product handed to Amazon's logistics.
- You create your listings in Seller Central
- You ship inventory to Amazon fulfilment centres
- Amazon stores the units and makes them Prime-eligible
- On each order, Amazon picks, packs and ships
- Amazon handles customer service and returns for those orders
FBA vs FBM
With FBM (Fulfilled by Merchant) you ship yourself and keep control of packaging, lead times and customer service. With FBA you delegate execution in exchange for per-unit and storage fees, and you gain Prime eligibility. Many brands mix both: FBA for fast movers, FBM for bulky or slow items.
The fees to plan for
Three cost families: Amazon's referral fee (category-dependent), FBA fulfilment fees (by weight and dimensions), and monthly storage fees (higher in Q4 and for aged inventory). Rate cards change, so always check current schedules in Seller Central before locking a retail price.
Benefits and limits
FBA brings Prime eligibility, short delivery times and logistics that absorb demand peaks. In exchange you lose control over the delivery experience, tie up inventory inside Amazon's network, and must meet strict prep and labelling requirements. FBA also won't rescue a weak listing: visibility still comes from Amazon SEO and advertising.
Is FBA right for your brand?
As a rule, FBA suits light, compact products with steady rotation and enough margin to absorb fulfilment fees. For heavy, oversized, highly seasonal or slow-moving items, a mixed or FBM approach is often healthier.
FAQ
- Does FBA make my products Prime-eligible?
- Yes, units fulfilled through FBA are generally Prime-eligible, which helps visibility and conversion.
- Can I use FBA and FBM at the same time?
- Yes. Many sellers split the catalog by weight, rotation and margin.
- What starting budget should I plan?
- It depends on your category, product dimensions and retail price. Start with a unit-margin simulation including referral, fulfilment and storage fees.
- Is FBA available outside Europe too?
- Yes. FBA runs on every Amazon marketplace we work with, including the US, Japan and Saudi Arabia, not just the European ones. Fee schedules and lead times vary by country, so always check the current rate card for each marketplace.
- Do I need Amazon Brand Registry to use FBA?
- No. FBA and Brand Registry are separate. Brand Registry adds protection and content options like A+ Content, but isn't required to fulfil orders through FBA.
- Who should manage my FBA operations day to day?
- Some brands run it in house once volume is stable. Others bring in an agency to handle account health, reimbursements and expansion alongside advertising and SEO. Our Amazon advertising agency and Amazon SEO agency services plug in directly once your FBA setup is running.
Want a second opinion on your FBA setup?
We review your SKUs, margins and marketplaces to say where FBA makes sense and where it doesn't.
Talk to usWe are an independent service provider and are not affiliated with or endorsed by Amazon.
