What is Amazon FBA?

 

What is Amazon FBA?

Fulfillment by Amazon is a service offered by — you guessed it — Amazon, as a means for third-party sellers to automate their order fulfillment and shipping services. It’s a pretty simple concept: Sellers sell, Amazon ships. 

Anyone enrolled in Amazon FBA can let Amazon handle all shipping, including returns and refunds, as well as product warehousing in Amazon’s warehouses, picking and packing, and more. 

Sellers send their products to Amazon, who warehouses everything and then processes all of the orders as they come in. As long as you handle the sales and make sure Amazon stays stocked with your products, the rest is done for you. 

And yes, you have to pay Amazon fees for it. Of course you do. So, what do you get for the money?

  • 24/7 Amazon customer service
  • All fulfillment and shipping costs included (pick, pack and ship)
  • Access to one of the world’s most dynamic fulfillment networks

Most people are familiar with the fact that Amazon is a giant in the online retail and fulfillment space. COVID-19 and the resulting pandemic has only served to increase the use of the Amazon platform, which has over 300 million active customer accounts around the world. 

Bear in mind that FBA might not be ideal for low-value items, large dimension products or other circumstances. While it offers a lot, it’s not a guaranteed solution for every seller. How can you decide? That’s why we’re here. 

Let’s take a quick look at the history and evolution of this platform, and then we’ll dig into the features, pros and cons, and more.

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