What is fulfillment by Amazon and how does it work?

If you sell products online, you have probably come across the term Amazon FBA at some point. Whether you are a brand looking to expand into new European markets or a business already active on Amazon, understanding how Fulfillment by Amazon works and what the amazon order fulfillment process involves can make a significant difference in how you scale. At Distrilink, we help brands activate and grow on Amazon and other major European marketplaces, representing more than 25 brands and offering full operational support from activation and optimization to logistics and customer service, so we know firsthand how powerful amazon fba fulfillment services can be when applied strategically to your business.

What is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon (FBA) is a logistics and fulfillment service offered by Amazon in which sellers send their inventory to Amazon’s fulfillment centers, and Amazon handles storage, packing, shipping, customer service, and returns on their behalf. In short, you supply the products and Amazon takes care of the entire amazon order fulfillment process from warehouse to the customer’s door.

Launched to help third-party sellers compete at scale, FBA gives businesses access to Amazon’s global logistics network without needing to build their own warehousing or shipping infrastructure. Products fulfilled through FBA automatically qualify for Amazon Prime, which means customers receive faster delivery and sellers benefit from increased visibility in search results and a higher likelihood of winning the Buy Box. For European brands and sellers, this is particularly valuable: amazon fba fulfillment services remove the operational complexity of cross-border logistics while enabling immediate access to millions of active buyers across Amazon’s European marketplaces.

How does the Amazon FBA order fulfillment process actually work?

The amazon order fulfillment process works in four core steps: you send your inventory to an Amazon fulfillment center, Amazon stores your products, a customer places an order, and Amazon picks, packs, and ships the product directly to the buyer. Amazon also manages any returns or customer inquiries related to that order, making it a fully managed fulfillment solution for sellers who want to operate at scale without handling logistics in-house.

Here is a closer look at each stage of the process:

1. Inventory preparation: You prepare your products according to Amazon’s labeling and packaging requirements and ship them to a designated Amazon fulfillment center.
2. Storage: Amazon stores your products in its warehouse until a customer purchases them. Storage fees apply based on the volume your inventory occupies.
3. Order processing: When a customer places an order, Amazon’s system automatically routes it to the nearest fulfillment center that holds your stock.
4. Picking and packing: Amazon staff pick the product, pack it according to their standards, and attach the shipping label.
5. Delivery: The order is shipped using Amazon’s carrier network, often with next-day or two-day delivery for Prime members.
6. Returns and customer service: Amazon handles all post-purchase communication and return logistics on your behalf.

This end-to-end process means sellers can operate at high volume without managing physical logistics themselves. For brands entering or scaling on Amazon’s European marketplaces, outsourcing the fulfillment process to Amazon through FBA is often the fastest route to Prime eligibility, operational efficiency, and sustainable growth.

What does Fulfillment by Amazon cost?

Amazon FBA costs consist of two main components: fulfillment fees and storage fees. Fulfillment fees are charged per unit shipped and vary based on the product’s size and weight category. Storage fees are charged monthly based on the cubic space your inventory occupies in the fulfillment center, with higher rates applied during the peak October to December period. To give you a practical sense of what these costs look like, consider two common product types: a compact product weighing around 300g in a small package might incur an estimated fulfillment fee of roughly €3.50 to €4.50 per unit plus a monthly storage cost of a few cents per unit, while a standard product around 1kg in a mid-size package could see fulfillment fees in the range of €5.00 to €7.00 per unit depending on the marketplace. These figures are indicative and vary by period and marketplace, so always use the FBA Revenue Calculator in Seller Central for an accurate estimate based on your specific product dimensions and target market.

In addition to these core fees, sellers should be aware of a few other potential costs:

• Long-term storage fees: Products stored for more than 180 days incur additional charges, which incentivizes sellers to manage inventory efficiently.
• Returns processing fees: Depending on the product category, Amazon may charge a fee when processing a customer return.
• Removal fees: If you want unsold inventory returned to you or disposed of, Amazon charges a fee per unit.
• Labeling and prep fees: If you do not prepare your products to Amazon’s standards yourself, Amazon can do it for a fee per item.

The actual fee amounts change periodically, so it is always worth checking Amazon’s current fee schedule directly in Seller Central before committing to a pricing strategy. Understanding your total landed cost, including all FBA fees, is essential for maintaining healthy margins across your product range. Want to know whether FBA is profitable for your specific assortment? We are happy to calculate it for you and help you build a cost model that works for your business.

FBA vs FBM vs 3PL: which fulfillment model fits your business?

The key difference between FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) is who handles the logistics. With FBA  Amazon stores, packs, and ships your products and manages customer service and returns. With FBM, you as the seller are responsible for storing inventory, fulfilling orders, and managing returns yourself or through a third-party logistics provider (3PL). A third option, working directly with a 3PL partner, gives sellers more control over branding, packaging, and storage conditions while still outsourcing the physical logistics, though it does not include automatic Prime eligibility the way FBA does.

Each model has its advantages depending on your situation:

• FBA is generally better suited for high-volume sellers, products with consistent demand, and businesses that want Prime eligibility without managing their own warehouse operations.
• FBM gives sellers more control over packaging, bundles, and fulfillment speed. It can also be more cost-effective for large, heavy, or slow-moving products where FBA storage fees would erode margins.

Some sellers use both models simultaneously, applying FBA to their best-selling products and FBM for items that are less cost-efficient to store in Amazon’s warehouses. This hybrid approach, sometimes called a hybrid fulfillment strategy, can help optimize costs while maintaining Prime eligibility where it matters most. Choosing the right fulfillment mix depends on your product range, margins, and growth ambitions. And it is one of the strategic decisions we help brands navigate as part of our full Amazon activation and management service.

Who should use Fulfillment by Amazon?

Amazon FBA is best suited for sellers who want to scale efficiently without building their own logistics infrastructure. It works particularly well for brands with consistent product demand, compact and lightweight items, and businesses that want to compete for Prime placement without managing warehouse operations. For European brands, particularly those based in Belgium and the Netherlands, FBA also provides a direct route to serving customers across Amazon’s European marketplaces,  without the complexity of managing cross-border fulfillment independently.

FBA tends to deliver the most value for:

• Mature brands entering Amazon for the first time who want a fast, structured route to market
• Businesses with a growing product catalog that would be difficult to fulfill manually at scale
• Companies targeting international Amazon marketplaces who want to leverage Amazon’s cross-border fulfillment capabilities
• Sellers who want to win the Buy Box more consistently, as FBA products often receive a ranking advantage

FBA may be less ideal for businesses with low margins, broad assortments, bundels oversized products, or highly seasonal inventory that risks incurring long-term storage fees. In those cases, a hybrid approach combining FBA with FBM or a 3PL partner may be more financially sensible. 

How do you get started with Fulfillment by Amazon?

To get started with Amazon FBA fulfillment services, you need an active Amazon Seller Central account with a Professional selling plan, at least one product listed on Amazon, and inventory prepared according to Amazon’s packaging and labeling requirements. Once those are in place, you can enroll your listings in FBA and create your first shipment plan. For Belgian and Dutch sellers, it is also worth confirming your VAT registration status before shipping inventory to European fulfillment centers, as cross-border storage in multiple EU countries can trigger additional VAT obligations.

Here is a step-by-step overview of the Amazon order fulfillment process:

1. Create or log into your Seller Central account: If you do not already have one, register as a seller and select the Professional plan, which is required for FBA access.
2. List your products: Add your products to Amazon’s catalog with complete and optimized product detail pages.
3. Convert listings to FBA: In Seller Central, change the fulfillment method for your products from merchant-fulfilled to Amazon-fulfilled.
4. Prepare your inventory: Follow Amazon’s requirements for labeling, packaging, and product condition. Each unit needs a scannable barcode that Amazon can track.
5. Create a shipment plan: Use the Seller Central shipping workflow to generate a shipment plan, which tells you how many units to send and to which fulfillment center.
6. Ship your inventory: Send your products to the assigned fulfillment center using an approved carrier.
7. Go live: Once Amazon receives and processes your inventory, your listings become active and Amazon handles fulfillment from that point forward.

The setup process is straightforward for most product types, but getting it right from the start, especially around labeling, inventory planning, and understanding what fulfilled by Amazon means for your specific product category, makes a real difference in avoiding unnecessary fees or delays. Using tools like the FBA Revenue Calculator in Seller Central before you ship can help you estimate costs and confirm that FBA is the right fulfillment model for your margins.

How Distrilink helps you activate and scale with Amazon FBA

We help brands grow quickly and in a controlled way on online marketplaces. Rather than building your own marketplace team, IT infrastructure, or logistics operation from scratch, you can activate and scale through us immediately. With a data-driven and standardized approach, supported by our own platform and fulfillment capabilities, we take on the full operational execution: from activation and optimization to logistics and customer service. This means you can expand your e-commerce reach without adding complexity, with speed, control, and clear visibility into your performance. We currently represent more than 25 brands and are connected to all major European marketplaces.

Our approach to Amazon FBA fulfillment services covers the full operational picture:

• Content and optimization: We create and optimize your product listings to maximize visibility and conversion.
• Logistics and fulfillment: With our own in-house warehouse, we manage inventory preparation, labeling, and shipment to Amazon fulfillment centers.
• Advertising and marketing: We run data-driven campaigns to accelerate growth on the platform.
• Customer service: We manage post-purchase communication so you do not have to.
• Performance reporting: Through our Distrilink Acceleration Platform, you have clear, centralized insight into how your brand performs across all channels.

From your first shipment to ongoing inventory management and customer service, we handle every part of the Amazon fulfillment process so your brand can scale on Amazon without the operational burden. Whether you are a Belgian or Dutch brand taking your first steps with Fulfillment by Amazon or an established seller looking to expand across European marketplaces, we are the partner that makes it happen. Want to find out how we can help your brand grow on Amazon? Get in touch with us and let’s talk about what is possible.