What Is Amazon FBA and Why Use It?
Amazon FBA (Fulfillment by Amazon) lets sellers store products in Amazon’s warehouses. The company handles packing, shipping, and customer service for your orders. Over 70% of Amazon sellers use FBA for its logistics network and Prime eligibility benefits. This guide shows how to enroll in FBA – perfect for new sellers wanting scalable order fulfillment.
Step 1: Create a Professional Seller Account
Start at Amazon Seller Central. Click “Start Selling” and choose between:
- Individual Account – $0.99 per sale (best for under 40 monthly sales)
- Professional Account – $39.99/month (required for FBA enrollment)
Complete business verification by providing:
- Government-issued ID
- Bank account details
- Tax information
Pro Tip: Brand-registered sellers get extra product protection. Register your trademark here.
Step 2: Set Up FBA in Seller Central
- Go to “Inventory” > “Manage Inventory”
- Select products and click “Edit” > “Convert to FBA”
- Choose inventory placement:
- Distributed (Amazon assigns warehouses)
- Inventory Placement Service ($0.30/unit fee)
Amazon’s robotic fulfillment centers use advanced stock tracking. Sellers report 99.8% inventory accuracy rates with FBA.
Step 3: Prepare Products for FBA Shipment
Follow Amazon’s strict prep guidelines:
| Requirement | Details |
|---|---|
| Labeling | Apply FNSKU barcodes (no manufacturer codes) |
| Packaging | Use 6-sided boxes with 200 lb. burst strength |
| Hazmat | Complete SDS sheets for regulated items |
Download Amazon’s product preparation manual for category-specific rules.
Step 4: Ship Inventory to Amazon Warehouses
- Print Amazon shipment labels
- Choose carrier:
- Amazon Partnered Carrier (discounted rates)
- Self-arranged freight
- Track delivery through Seller Central
Average receiving time: 2-5 business days. Use FBA shipment calculator to optimize shipping costs.
Step 5: Manage FBA Fees and Inventory
Amazon charges two main fees:
- Fulfillment Fees: $2.92-$137.32 (based on size/weight)
- Storage Fees: $0.83-$2.40/cubic ft monthly
Monitor through:
- Inventory Performance Index (keep above 450)
- Restock alerts
- Stranded inventory reports
Use FBA Revenue Calculator to model profitability.
FBA Seller Requirements and Best Practices
- Maintain >1% order defect rate
- Respond to buyer messages within 24 hours
- Use Amazon-approved poly bags (avoid suffocation risks)
Top-performing FBA merchants automate pricing with tools like Amazon Automate.
FBA Alternatives: When to Consider FBM
Fulfillment by Merchant (FBM) works better for:
- Oversized items (saves on storage fees)
- Custom products needing personalization
- Sellers with existing warehouse space
Hybrid models let sellers use FBA for fast-moving items and FBM for niche products.
Common FBA Registration Errors to Avoid
- Incorrect HS tariff codes causing customs delays
- Expired product certifications
- Missing suffocation warnings on flexible packaging
Amazon rejects 12% of first-time FBA shipments for prep errors. Double-check using their compliance checklist.
Next Steps After FBA Enrollment
- Enable Amazon Buy Shipping for returns
- Set up automated refunds
- Join FBA Small and Light program for eligible items
Pro sellers use FBA’s Multi-Channel Fulfillment to handle orders from other sales channels.
