If you’re exploring ways to sell on Amazon, you’ve likely come across the term Amazon FBA. It’s one of the most popular fulfillment models available to sellers, and for good reason. But understanding exactly what it includes, what it costs, and whether it’s the right fit for your business can feel overwhelming at first. This article breaks down everything you need to know about Amazon FBA in plain terms, so you can make a confident, informed decision. If you want to explore how a partner can help you activate and scale on Amazon without building everything from scratch, visit the Distrilink website for more context.
What does Amazon FBA actually include?
Amazon FBA, which stands for Fulfillment by Amazon, is a service where Amazon stores your products in its fulfillment centers, then picks, packs, and ships orders on your behalf. It also handles customer service and returns for those orders. In short, Amazon takes over the operational side of order fulfillment once your inventory arrives at its warehouse.
The service covers a broad set of logistics tasks that would otherwise require significant infrastructure to manage independently:
- Storage: Your products are held in Amazon’s fulfillment network across multiple locations
- Order picking and packing: When a customer places an order, Amazon staff prepare it for shipment
- Shipping and delivery: Amazon handles carrier selection, dispatch, and tracking
- Customer service: Amazon responds to buyer inquiries related to delivery and returns
- Returns processing: Amazon manages the return flow and restocks or disposes of returned items according to your settings
FBA also makes your products eligible for Amazon Prime, which significantly increases their visibility and conversion rate among Prime members who expect fast, free delivery.
How does the Amazon FBA fulfillment process work?
The Amazon FBA fulfillment process begins when you send your inventory to an Amazon fulfillment center. From that point, Amazon takes over. When a customer places an order, Amazon picks the item from its shelf, packs it, and ships it directly to the customer, typically within one to two business days for Prime-eligible products.
Here is how the process unfolds step by step:
- Prepare and label your inventory according to Amazon’s packaging and labeling requirements
- Ship your products to one or more Amazon fulfillment centers using Amazon’s partnered carriers or your own
- Amazon receives and stores your inventory in its warehouse system
- A customer places an order on Amazon for one of your products
- Amazon picks, packs, and ships the order using its own logistics network
- Amazon handles post-sale support, including any delivery issues, questions, or return requests
One important detail is that Amazon may distribute your inventory across multiple fulfillment centers to optimize delivery speed. This is done automatically and helps ensure faster shipping to customers in different regions.
What are the costs involved in Amazon FBA?
Amazon FBA involves two main categories of fees: fulfillment fees and storage fees. Fulfillment fees are charged per unit shipped and cover the cost of picking, packing, and delivering the order. Storage fees are charged monthly based on the volume of inventory you hold in Amazon’s warehouses.
Beyond these two core costs, sellers should also be aware of:
- Long-term storage fees: Applied to inventory that has been stored for more than 365 days
- Returns processing fees: Charged for certain product categories when Amazon processes a return on your behalf
- Removal and disposal fees: If you want unsold inventory returned or destroyed
- Inbound placement fees: Charged when Amazon needs to split and distribute your shipment across multiple fulfillment centers
Fulfillment fees are calculated based on the product’s size and weight, so heavier or bulkier items carry higher costs. Storage fees also increase significantly during the fourth quarter of the year, which coincides with peak shopping season. Sellers need to plan their inventory levels carefully to avoid unnecessary storage charges eating into their margins.
What’s the difference between Amazon FBA and FBM?
The key difference between Amazon FBA and FBM (Fulfilled by Merchant) is who handles the fulfillment. With FBA, Amazon stores, packs, and ships your products. With FBM, you as the seller are responsible for storing inventory, processing orders, and managing shipping and returns yourself or through a third-party logistics provider.
Here is how the two models compare across the most important dimensions:
- Prime eligibility: FBA products are automatically Prime-eligible; FBM sellers can apply for Seller Fulfilled Prime but must meet strict performance criteria
- Customer service: FBA delegates post-sale support to Amazon; FBM sellers handle it themselves
- Cost structure: FBA involves Amazon’s fees on top of selling fees; FBM gives you more control over logistics costs but requires your own infrastructure
- Scalability: FBA scales more easily during volume spikes since Amazon absorbs the operational load; FBM requires you to scale your own operations
- Control: FBM gives you more control over packaging, branding, and the customer experience; FBA uses Amazon’s standardized process
Neither model is universally better. FBA tends to work well for products with consistent demand and healthy margins, while FBM can be more cost-effective for large, heavy items or sellers with strong existing logistics capabilities.
Who should use Amazon FBA for their business?
Amazon FBA is best suited for businesses that want to scale their Amazon sales without building their own fulfillment infrastructure. It works particularly well for brands selling lightweight, high-margin products with steady or growing demand, and for businesses that want to benefit from Prime visibility without managing logistics in-house.
FBA is a strong fit if your business:
- Sells products that are compact, lightweight, and have a good margin after FBA fees
- Wants to reach Prime customers and compete effectively in search rankings
- Is growing quickly and cannot scale warehouse and shipping operations fast enough
- Operates internationally and wants to use Amazon’s cross-border fulfillment capabilities
- Lacks the internal resources to manage returns, customer service, and logistics at scale
On the other hand, FBA may be less attractive for businesses selling oversized or very heavy products, items with slow turnover, or brands that rely heavily on custom packaging as part of their customer experience. In those cases, a hybrid approach or FBM may make more sense.
How can a business get started with Amazon FBA?
To get started with Amazon FBA, you first need an Amazon Seller Central account. Once registered, you enroll in FBA, prepare your products according to Amazon’s requirements, and ship your inventory to a designated fulfillment center. From there, Amazon takes over the fulfillment side of your operation.
The practical steps include:
- Create a Seller Central account and choose a selling plan (Individual or Professional)
- List your products on Amazon with accurate titles, descriptions, and images
- Enroll your listings in FBA within Seller Central
- Prepare your inventory following Amazon’s labeling, packaging, and safety guidelines
- Create a shipment plan in Seller Central and send your stock to the assigned fulfillment center(s)
- Monitor your inventory levels and replenish stock before it runs out to avoid lost sales
Getting the setup right from the start matters. Poorly labeled shipments, incorrect product dimensions, or insufficient inventory planning can create costly problems. Many brands choose to work with an experienced partner to navigate the setup process and avoid common pitfalls.
How Distrilink helps you scale on Amazon
At Distrilink, we help brands grow quickly and in a controlled way on online marketplaces like Amazon. Rather than building your own marketplace team, IT infrastructure, or logistics operation from scratch, you can activate and scale through us immediately. Our approach is data-driven and standardized, supported by our own platform and fulfillment capabilities. We take on the full operational execution, from activation and optimization to logistics and customer service, so your brand can expand its e-commerce presence without added complexity.
Here is what working with us looks like in practice:
- Full Amazon setup and activation: Account creation, listing optimization, and FBA enrollment handled for you
- Centralized product management: All your products managed across all marketplaces through our Distrilink Acceleration Platform
- In-house fulfillment: Flexible logistics with our own warehouse, giving you control over stock and delivery times
- Marketing and advertising: Campaigns built to drive visibility and conversion on Amazon and beyond
- Customer service: Post-sale support managed on your behalf so you can focus on your brand
- Performance transparency: Clear reporting and insights so you always know how your products are performing
We represent more than 25 brands and are connected to all major European marketplaces. Whether you are launching on Amazon for the first time or looking to accelerate an existing presence, we give you speed, control, and clarity without the operational burden. Ready to take the next step? Get in touch with us via the Distrilink website and let’s explore what’s possible for your brand.
Frequently Asked Questions
How do I calculate whether Amazon FBA is actually profitable for my product?
Start by using Amazon's FBA Revenue Calculator (available in Seller Central) to input your product's dimensions, weight, and selling price. Subtract FBA fulfillment fees, monthly storage fees, Amazon's referral fee (typically 8–15% depending on category), and your cost of goods to arrive at your net margin. As a general rule of thumb, products priced between €15–€50 with a margin above 30% before fees tend to perform well under the FBA model.
What happens to my inventory if a product doesn't sell as expected?
If your inventory sits unsold in Amazon's fulfillment centers for more than 365 days, you'll be charged long-term storage fees, which can significantly erode your margins. To avoid this, you can create removal orders to have Amazon return or dispose of the stock, run promotions or price reductions to accelerate sell-through, or use Amazon's Liquidations program to recover partial value. Monitoring your Inventory Age report in Seller Central regularly is key to catching slow-moving stock before the fees compound.
Can I use Amazon FBA if I'm selling in multiple European countries?
Yes — Amazon offers the European Fulfillment Network (EFN) and the Pan-European FBA program, both of which allow you to store inventory in one country and sell across multiple European marketplaces. Pan-European FBA gives you the best delivery speeds and lowest fulfillment fees by distributing your stock across Amazon's EU fulfillment centers automatically, but it comes with VAT registration requirements in each country where your inventory is stored. It's worth consulting a tax advisor familiar with EU e-commerce before enrolling.
What are the most common mistakes new FBA sellers make, and how can I avoid them?
The most frequent mistakes include underestimating total FBA fees (especially storage and inbound placement fees), sending poorly labeled or non-compliant shipments that get rejected or delayed at the fulfillment center, and overstocking slow-moving inventory during Q4 when storage fees spike. Another common pitfall is launching without enough reviews or optimized listings, which limits visibility regardless of how good the product is. Taking time to fully understand Amazon's packaging requirements and fee structure before your first shipment will save you significant time and money.
Does using Amazon FBA affect my ability to sell on other platforms or through my own website?
No — enrolling in FBA doesn't restrict you from selling through other channels. In fact, Amazon offers a feature called Multi-Channel Fulfillment (MCF) that lets you use your Amazon FBA inventory to fulfill orders placed on your own website or other platforms like Shopify. This can be a cost-effective way to leverage Amazon's logistics network beyond the marketplace itself. Just be aware that MCF orders are shipped in Amazon-branded packaging unless you opt for blank box delivery.
How long does it take for my inventory to become available for sale after sending it to Amazon?
Typically, once your shipment arrives at an Amazon fulfillment center, it takes between 2 to 5 business days for the inventory to be checked in, processed, and made available for purchase. However, during peak periods such as Q4 or Prime Day, processing times can extend to one to two weeks. It's best practice to send replenishment stock well in advance — most experienced sellers aim to maintain at least 4–6 weeks of cover at all times to avoid stockouts during high-demand periods.
Is it possible to switch from FBM to FBA (or vice versa) without disrupting my sales?
Yes, and many sellers run both models simultaneously on the same listings, which is known as a hybrid approach. You can convert individual FBM listings to FBA directly in Seller Central, and your listing remains active throughout the process. The main consideration when switching to FBA is ensuring your inventory arrives and is processed before your FBM stock runs out, so there's no gap in availability. Switching from FBA back to FBM requires setting up your own fulfillment process in advance and updating your shipping settings in Seller Central before removing inventory from Amazon's warehouses.
