All terms
E-Commerce & Product Sellingintermediate

FBA

Fulfilment by Amazon

Definition

Amazon's service where sellers send inventory to Amazon warehouses and Amazon handles all storage, picking, packing, shipping, and customer returns.

Why it matters

FBA gives smaller sellers access to Prime eligibility, Amazon's fulfilment speed, and its returns infrastructure. The trade-off is storage fees, FBA fees per unit, and giving Amazon data about your best selling products.

Example

A founder sends 500 units to an Amazon fulfilment centre. Every order made on Amazon is automatically fulfilled. She focuses entirely on sourcing, listing optimisation, and advertising without touching logistics.

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