Overview

Amazon’s Fulfillment by Amazon (FBA) program lets third‑party sellers store their products inside Amazon’s fulfillment network, where Amazon takes over picking, packing, shipping, and post‑sale support. Launched in 2006, the service now powers millions of listings and gives sellers instant access to Prime‑eligible, two‑day delivery across the United States—an advantage that can dramatically affect sales velocity.

Key Points

• Inventory storage — Sellers ship bulk quantities to Amazon’s warehouses; a boutique apparel brand might send 2,000 t‑shirts to a fulfillment center in Texas, freeing up its own storage space.
• Fulfillment fees — Amazon applies a per‑unit charge that covers picking, packing, and transportation; for a standard‑size, 1‑lb item the fee typically hovers around $3.00, plus any applicable weight‑based surcharges.
• Prime eligibility — Every item fulfilled by Amazon automatically qualifies for the Prime badge, which often translates into higher placement in search results and faster checkout for Prime members.
• Customer service — Amazon fields buyer questions, processes refunds, and manages returns on the seller’s behalf, dramatically reducing the seller’s support workload.
• Multi‑channel fulfillment — The same inventory stored at Amazon can satisfy orders from a seller’s own website, Shopify store, or other marketplaces, extending the utility of each unit.
• Inventory health tools — Amazon provides dashboards that flag excess, aging, or stranded inventory, helping sellers avoid long‑term storage fees and keep stock levels optimal.

How Amazon FBA Works

1. Create a shipment plan — In Seller Central, the seller selects the SKUs to send, specifies quantities, and receives a routing list that assigns each unit to a specific fulfillment center. Example: A skincare company lists 1,200 bottles of a new moisturizer and receives assignments for three regional warehouses in California, Ohio, and Texas.
2. Prepare and label each unit — Products must meet Amazon’s packaging guidelines and carry a scannable FNSKU barcode; sellers either print their own labels or opt for Amazon’s labeling service.