What Is FBA (Fulfillment by Amazon)?
FBA (Fulfillment by Amazon) is the Amazon program where you send inventory to Amazon's fulfillment centers, and Amazon stores it, picks, packs and ships each order, and handles customer service and returns for those units.
Once units arrive at a fulfillment center, your offer becomes eligible for Prime delivery, and Amazon takes over shipping, returns and most customer questions for those orders. You still own the listing, the pricing and the advertising.
How FBA fees are structured
You pay a per-unit fulfillment fee based on the product's size tier and shipping weight, a monthly storage fee by volume (higher from October to December), and surcharges for inventory that sits too long. The referral fee, Amazon's commission on each sale, applies whether you use FBA or not. Amounts change most years, so check the current rate card before you price a product. Our FBA fees guide walks through a full per-unit profit calculation.
Why brands use it
The Prime badge and fast delivery usually lift conversion rate, and FBA offers compete well for the Buy Box. For most brands selling on Amazon it is the default fulfillment method.
Common mistake
Sending too much stock. Slow sellers rack up storage and aged inventory fees and pull down your IPI score, which can limit how much Amazon lets you store. Many brands keep bulky or slow items on FBM instead.