FBA (Fulfillment by Amazon) is Amazon's warehousing and fulfilment service. Sellers send inventory to Amazon's fulfilment centres (FCs), and Amazon handles all logistics from that point: picking, packing, shipping to the customer, customer service, and returns processing.
How FBA Works
- Create an FBA shipment plan in Seller Central → Inventory → Send/Replenish Inventory
- Label your units (with FNSKU barcodes, unless commingling is enabled — not recommended)
- Ship to the designated Amazon FC(s) — Amazon may split your shipment across multiple centres
- Inventory goes live once received and counted at the FC
- Orders are fulfilled automatically when customers purchase
FBA Fees
Amazon charges two primary fee types:
- Fulfilment fees: Per-unit fee based on item size and weight. For a standard-size item (8 oz or less), this is approximately $3.22 per unit as of 2026.
- Storage fees: Monthly per-cubic-foot charge. Non-peak (Jan–Sep): $0.92/cu ft; peak (Oct–Dec): $2.56/cu ft.
Additional fees apply for returns processing, removal orders, and aged-inventory surcharges.
FBA Benefits
- Prime badge: FBA items automatically qualify for Prime 1-day and 2-day shipping, increasing conversion significantly
- Buy Box advantage: Amazon's algorithm favours FBA over merchant-fulfilled in competitive situations
- Customer service offloaded: Amazon handles all buyer inquiries and returns for FBA orders
- Scalability: No picking/packing staff or warehouse space required as you grow
FBA Drawbacks
- Less control over packaging — limited ability to include branded inserts (check current policies)
- Commingling risk — if enabled, your units may be mixed with other sellers' identical products
- Storage limits: Amazon assigns storage capacity limits per ASIN based on your IPI score
- Removal fees: Getting inventory back out of FBA costs per unit removed or disposed
FBA vs. FBM
FBM (Fulfillment by Merchant) means you ship orders yourself. It suits sellers with fast-moving heavy items where FBA fees exceed self-shipping costs, or with inventory that requires special handling.