FBA · Fulfillment by Amazon
Fulfilment by Amazon (FBA) is Amazon's service where you ship inventory to Amazon's warehouses and they handle storage, packing, shipping, returns, and customer service.
With FBA your products become Prime-eligible and you hand off the logistics, in return for fulfilment and storage fees. The alternative is FBM, or Fulfilled by Merchant, where you ship every order yourself.
FBA fees vary with a product's size and weight, so they're a major input into whether a product is actually profitable.
Why it matters
FBA fees and Prime eligibility shape both your margins and your conversion rate, so they sit at the centre of any product's profit maths.
Related terms
Guides that use this term
- How to Calculate Profit Margins: Amazon FBA vs Dropshipping
A step-by-step guide to working out your true profit margin, covering the full Amazon FBA fee and cost stack, the ad-cost reality of dropshipping, and the break-even maths that decides whether a product is worth selling.
- How to Find and Vet Product Suppliers
How to find reliable suppliers and vet them before you order: Alibaba for Amazon FBA bulk orders, AliExpress and Temu for dropshipping, and the checks that protect you from bad stock and long delays.
- How to Source Products for Amazon FBA & Dropshipping
A practical guide to sourcing: choosing a supplier model, ordering from Alibaba, AliExpress, and Temu, negotiating and sampling, and handling shipping, duties, and quality so your product arrives right.
- How to Negotiate With Suppliers
How to negotiate with suppliers without damaging the relationship: what's actually negotiable beyond price, how to use quantity and quotes as leverage, and the terms to pin down in writing.
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