Overview

Amazon’s Fulfilled by Amazon (FBA) program lets sellers ship their stock to Amazon’s warehouses, where the company takes over picking, packing, shipping, and after‑sale service. The service has become a cornerstone for private‑label brands and expanding sellers because it automatically grants Prime‑eligible delivery. New sellers need to grasp the full workflow to avoid costly mistakes and to leverage the speed and trust that Amazon’s logistics provide.

Key Points

• Eligibility — To enroll, a seller must maintain an active Professional selling plan and provide a bank account capable of receiving Amazon’s disbursements.
• Labeling & Packaging — Every unit requires an Amazon‑generated FNSKU barcode and must meet size, weight, and safety packaging rules; for instance, a batch of 250 silicone spatulas must be individually wrapped and labeled before being sent.
• Fee Structure — Amazon applies a per‑unit fulfillment fee based on dimensions and weight plus a monthly storage charge calculated per cubic foot, meaning a compact paperback incurs lower costs than a bulky kitchen gadget.
• Prime Qualification — Products stored in Amazon’s network automatically become eligible for two‑day Prime shipping, which improves Buy Box placement and typically raises conversion rates.
• Returns Management — Amazon handles customer returns, inspects each item, and restocks those deemed sellable, thereby reducing the seller’s service load but potentially altering available inventory.
• Inventory Forecasting — The “Restock Inventory” tool predicts demand and suggests shipment quantities, helping sellers avoid long‑term storage fees by timing shipments to match seasonal peaks.

How Amazon FBA Works

1. Create a shipment plan — In Seller Central the seller selects the SKU(s), inputs the total units, and receives Amazon’s suggested fulfillment center locations; for example, a vendor of organic cotton tote bags plans to send 600 units, which Amazon splits between a Kentucky hub and a California hub.
2. Prepare and label inventory — Each item receives a unique FNSKU that the seller prints and affixes to the product or its outer packaging while also complying with Amazon’s packaging standards, such as poly‑bagging 120 glass candle holders and adding a “Fragile” sticker.