Fulfillment by Amazon (FBA) means Amazon stores your inventory, then picks, packs and ships each order. It also handles eligible customer returns. You still control the listing, pricing and sourcing.
How FBA works
- You send inventory to Amazon using an inbound shipment.
- Amazon stores the stock until it sells.
- Amazon ships each order and handles eligible customer returns.
Costs to plan for
Each sale can carry several fees:
- Referral fee: a percentage of each sale, set by category.
- Fulfillment fee: a per-unit charge based on size and weight.
- Monthly storage fee: charged per cubic foot, and higher in peak months.
- Long-term storage fee: applies to stock kept in the warehouse past Amazon’s age limits.
Check current rates on Amazon’s fee schedule before you price a product. Rates change, and a product that earns a profit at one price can lose money at another.
Setup in five steps
- Register as a professional seller.
- Create a new listing or match your product to an existing one.
- Create an inbound shipment and label each unit.
- Ship the stock to the fulfillment center you are assigned.
- Track receiving in Seller Central and set a restock plan.
Mistakes new sellers make
- Pricing without the full fee stack.
- Sending too much stock too soon, which drives up storage fees.
- Letting stock run out, which can hurt your ranking.
- Ignoring the FBA inventory report.
If you want a second look at your fee structure and stock levels, our Amazon FBA consulting team can review them. Start with our free Amazon audit.
Also read: The Complete Guide to Amazon Seller Consulting (2026) for the full picture, and Amazon PPC Guide for advertising your FBA products. Use the FBA fee calculator to test your margins before you ship.
Frequently asked questions
Is FBA worth it for a new seller?
It depends on your margin, product size, and how much time you want to spend on shipping and returns. Work out your total cost per unit, including every fee, before you decide.
Do I need Prime to use FBA?
No. You can sell without Prime. Check Amazon’s current Prime requirements before you plan around them.
This article is general information about Amazon selling. It is not financial or legal advice. Check Amazon’s current fee and policy pages before making decisions.
