Glossary

Amazon FBA (Fulfillment by Amazon)

Fulfillment by Amazon (FBA) is a service that allows businesses to outsource order fulfillment to Amazon. Businesses send products to Amazon fulfillment centers and when a customer makes a purchase, they pick, pack, and ship the order. They can also provide customer service and process returns for those orders.

What does Amazon FBA mean?

Amazon FBA stands for Fulfilled by Amazon. Fulfillment by Amazon (FBA) is a service that allows businesses to outsource order fulfillment to Amazon. Businesses send products to Amazon fulfillment centers and when a customer makes a purchase, they pick, pack, and ship the order. They can also provide customer service and process returns for those orders.

How FBA works?

Here are the steps to get started with Amazon FBA for your business. 

​

  1. Login to Amazon seller central and set up FBA
  2. Create Product Listings and specify FBA inventory
  3. Prepare packing as per Amazon guidelines
  4. Ship products to Amazon post labeling 

​

Amazon FBA Benefits:

  • Products are eligible for Prime Free 2 day-shipping or Free Shipping
  • Amazon trusted customer services and returns for customers
  • Scale your business with fulfillment services like FBA pan EU, FBA Export, etc. 
  • Highly cost effective with upto 32% less cost per unit and no extra Prime charge

​

Different Types of Storage and Fulfillment Fees with Amazon FBA

  • Inventory Storage Fee for all items stored
  • Fulfillment Service Fee for per unit picking, packing and shipping
  • Removal Order fees for Amazon return or dispose inventory
  • Aged Inventory surcharge assessed monthly for items stored for >180 days
  • Unplanned service fees for inventory arriving without planning
  • Return processing fee charged on Amazon free return for customers

​