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What is FBA?

Fulfillment by Amazon

What Exactly is FBA?

FBA is an acronym for “Fulfillment By Amazon. “It is an excellent solution for e-commerce professionals whose business has grown to the point that they need help fulfilling orders and more space for inventory. FBA is a third-party Logistics service provided by Amazon. Having an FBA account means you can send your inventory in bulk to one central location and have it picked up, packed, and shipped by Amazon.

When you set up an Amazon Seller Account, you can select Seller Fulfillment or FBA (Fulfillment By Amazon). When you use FBA, Amazon will manage your inventory in their warehouses and fulfill your orders as they come in. Once in their warehouses, they’ll pick, pack & ship them using the Amazon delivery infrastructure. You only pay for the actual act of fulfilling your orders. If no orders come in that day, you don’t pay any.

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Convenience of FBA

E-commerce professionals across the planet use FBA services to pick, pack, and ship their items daily. FBA fulfillment centers handle all the details of inventory management and order fulfillment, saving you time to work on your business. FBA has specialized services that can help you grow your business without investing in infrastructure or staffing. Some services to help you are:

  • FBA Small and Light: Low-cost, small, and lightweight FBA inventory reduces the cost of fulfilling orders.
  • FBA Subscribe & Save: Offer discounts on eligible FBA products for repeat customers.
  • FBA Pan-EU: Offer fast delivery in Prime-eligible European countries.
  • FBA Export: At no extra charge, expand your FBA business to more than 100 countries—minus the complexities of international selling.
  • Multi-Channel Fulfillment: Sell from your own or third-party e-commerce sites, with Amazon picking, packing, and shipping to your customers.
  • Amazon FBA’s Pay-As-You-Go: Ensure that you only pay for storage space and the orders that FBA fulfills. The cost of shipping is included in your fees, with no extra charge for Prime FREE Two-Day Shipping and free shipping on eligible orders. Fees for Selling on Amazon and optional services may apply.

    Using FBA to fulfill your orders has the benefit of Amazon’s 24/7 customer service team.

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Awards and Endorsements

  • 2021, 2017 & 2016 Food Logistics’ Top Green Providers
  • 2021 & 2018 Supply & Demand Chain Executives’ Pros to Know: Matthew Brosious
  • 2020 & 2019 Top Food Logistics’ 3PL & Cold Storage Provider Award
  • 2020 & 2019 Business Observer’s Top 500 Companies on the Gulf Coast
  • 2020 & 2019 Business Observer’s Top 500 Companies on the Gulf Coast
  • 2020 & 2017 Food Logistics’ Champions: Rock Stars of the Supply Chain
  • 2020 Best of Palm Harbor Awards for Local Businesses
  • 2017 Green Supply Chain Award from Supply & Demand Chain Executive
  • 2017 Tampa Bay Business Journal Heroes at Work
  • 2016, 2015, & 2012 Food Logistics Top 100 Software and Technology Providers
  • 2013 Tampa Bay Business 100 by Tampa Bay Business Journal
  • 2013 Top 100 Great Supply Chain Partners by SupplyChainBrain
  • 2012 TIA Samaritan Award Honorable Mention
  • 2012, 2011 & 2010 TBBJ Fast 50 Recipient

Shipping to an FBA Warehouse w/ FreightCenter

When shipping to the FBA warehouse, there are some rules to avoid incurring unnecessary fees from Amazon.

The first step in packaging is ensuring all individual packages are labeled correctly. Each item heading to an FBA warehouse will need its own SKU sticker. Once prepped for delivery, all boxes should be labeled with appropriate FBA shipment ID labels to tell the receiver what is in the boxes on the pallet. You will also need separate labels for each pallet and your bill of lading for the carrier transporting your items.

You should ensure all items picked up by your carrier are centered on and bound to a shipping pallet with no overhang.

  • Place your heaviest items in the middle and bottom of your pallet.
  • Shippers should wrap their shipments in plastic to help keep their items from shifting during transit.
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What is FBA? Guaranteed competitive pricing every time you ship.
Finely-tailored freight solutions

To create value for our customers by delivering customized shipping solutions that meet their unique needs and to fulfill shipping demands from simple to complex with expertise, guidance and ingenuity.

Rail Freight

Rail shipping is a cost-effective and environmentally friendly transportation method that utilizes trains to move goods over long distances. It's known for its efficiency in handling large volumes of cargo, making it a sustainable and economical choice for businesses seeking reliable freight transport options.

Expedited Freight

Expedited shipping is a premium service designed to meet urgent delivery needs. It prioritizes speed and quick turnaround, ensuring that packages or goods reach their destination faster than standard shipping options. Expedited shipping is the go-to choice when time-sensitive deliveries are essential, providing businesses and individuals with reliable and prompt service for critical shipments.

White Glove Freight

White glove shipping is a premium service that goes beyond standard delivery, offering meticulous handling, specialized packaging, and in-home setup or installation for valuable or delicate items, ensuring a seamless and hassle-free experience for customers.

LTL Freight

Less than truckload (LTL) shipping is a smart logistics solution for businesses with smaller shipments. It combines multiple smaller shipments into a single truckload, optimizing space and reducing costs. LTL shipping offers affordability and efficiency while ensuring timely delivery, making it an ideal choice for companies looking to save on transportation expenses without compromising on service quality.

Seller Plans

Having your orders fulfilled by Amazon will cost as much as hiring an individual to fulfill orders in your warehouse. The benefit is that you can pay as you go and avoid employee issues. You have two choices of how to set up your Amazon Seller account: Individual Seller or Professional Seller.

Individual Sellers can avoid a standard monthly fee but will pay more for individually fulfilled orders. They also cannot advertise on the platform or see certain metrics. Pro Seller accounts are charged a monthly fee but can advertise on the platform, get customized reports, and pay less per fulfilled order.

Fees

Fulfillment fees arise according to the shipment’s packaging and handling needs. Fees will also vary depending on size and weight. Storage fees are similar, taking into account the shipment’s volume and size. The shorter the stay, the lower the fee. The longer the stay, the higher the fee. Other standard seller fees will include the customary 15%-18% of the product price that Amazon absorbs for providing its services.

Having your orders fulfilled by Amazon also comes with various other fees. In addition to the fulfillment costs, there are possible storage and disposal fees.

Here are the most common FBA fees:

  • Inventory storage fees: Charged for all items stored in an Amazon fulfillment center and based on your daily average volume of inventory measured in cubic feet. See how to determine the product size tier for your items.
  • Long-term storage fees: Assessed monthly for all items stored in a fulfillment center for more than 365 days. Maintaining sound inventory health can help you avoid long-term storage fees.
  • Fulfillment fees: Charged per unit for picking and packing your orders, shipping and handling, customer service, and product returns. Use the FBA revenue calculator to estimate fees and see how to preview your fees.
  • Unplanned services fees: Charged when inventory arrives at a fulfillment center without proper preparation or labeling, making unplanned services required.
  • Removal order fees: Amazon can return or dispose of your inventory in a fulfillment center for a per-item fee.
  • Returns processing fees: Charged on orders when Amazon provides a customer with free return shipping.
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FBA (Fulfillment by Amazon) FAQs

Q. What is Fulfillment by Amazon (FBA)?

A. Fulfillment by Amazon (FBA) is a service that allows sellers to store their products in Amazon’s fulfillment centers. Amazon then picks, packs, ships, and provides customer service for these products, simplifying the selling process for sellers.

Q. How does FBA work?

A. Sellers send their products to Amazon’s fulfillment centers, where they are stored until they are sold. When a customer places an order, Amazon picks the product from its inventory, packs it, ships it to the customer, and handles any customer inquiries or returns.

Q. What are the benefits of using FBA?

A. Using FBA offers several benefits to sellers, including access to Amazon’s vast customer base, Prime eligibility for products, fast and reliable shipping, access to Amazon’s customer service, and the ability to outsource storage and fulfillment tasks.

Q. How much does FBA cost?

A. The cost of using FBA varies depending on factors such as the size and weight of the product, the storage duration, and any additional services required. Amazon charges fees for storage, fulfillment, and other optional services outlined in their fee schedule.

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