Fulfillment by Amazon
Fulfillment by Amazon (FBA) is Amazon's service in which sellers send inventory to Amazon fulfillment centers and Amazon picks, packs, ships, and handles returns.
Why it matters for ecommerce brands
FBA puts your products in front of Prime shoppers with Amazon handling storage, shipping, and returns, which can lift sales on the marketplace. The cost comes as per-unit fulfillment fees, monthly storage that rises in peak season, inbound placement fees, and surcharges on aged inventory. Capacity limits also cap how much you can send in. For example, a brand that sends six months of stock to FBA to save on inbound trips may pay more in storage and aged-inventory fees than it saved. Smaller, frequent shipments sized to sales usually cost less.
Origin
Amazon launched Fulfillment by Amazon in September 2006, letting Marketplace sellers store inventory in Amazon warehouses and have orders picked, packed and shipped with Prime eligibility.
Common questions
- Can I use FBA inventory for orders from my own website?
- Yes, Amazon offers Multi-Channel Fulfillment, which ships orders from other channels using inventory stored in Amazon's network. Fees and packaging rules differ from standard FBA orders.
- What is the difference between FBA and FBM?
- With FBA, Amazon stores, ships, and handles returns for your inventory. With fulfillment by merchant, you or your 3PL ship Amazon orders yourself, and Prime eligibility then depends on programs like Seller Fulfilled Prime.
- How do FBA capacity limits work?
- Amazon limits how much inventory each seller can store or send in, based on factors such as sales history and inventory performance. Check your current limits in Seller Central before planning a large inbound shipment.