Amazon FBA Guide

Fulfillment by Amazon (FBA) – A Guide to Leveraging Amazon's Logistics Services

icon: fba
Wondering how Amazon FBA works?
Continue reading this FAQ page where we answer some your top questions asked.

1. What is Fulfillment by Amazon (FBA)?

Amazon FBA is a program that helps Amazon sellers outsource the fulfillment process to Amazon. You can enroll your inventory in FBA to store products in Amazon fulfillment centers. When customers place orders, Amazon can pack, ship, and provide customer service for the FBA items.

When you list products with FBA, the listings for qualified offers can display the Prime badge, letting customers know they’re eligible for free, two-day shipping.

Learn more about the benefits of FBA here.

2. What is the difference between Merchant Fulfilled Network (MFN) and FBA?

In Amazon, there are 2 ways to fulfill your products. Merchant Fulfilled Network (MFN) is an option where sellers prepare and ship each order to customers. You will handle all customers’ queries, and you will also have to manage customer returns e.g. handle return logistics and bear return costs. Amazon FBA is another option where you pack and ship your products to our Fulfillment Center (FC) in the US, and Amazon handles receiving, packing, shipping, customer service, and returns for those orders.

Learn more about the difference between MFN and FBA below

3. What are the benefits of using Amazon FBA?

(1) Save on fulfillment cost by shipping in bulk
(2) Reach out to millions of Prime members
(3) Potentially increase product visibility and conversion with the Prime badge
(4) Amazon handles getting the products to the customers
(5) 24/7 customer support in your local language
(6) Amazon handles all customer returns and exchanges
6 Benefits of FBA

4. How much does it cost to use Amazon FBA?

When you fulfill orders with FBA, Amazon charges a fee per unit that is based on the weight and dimension of your product. This fee includes:
(1) Inventory Storage Fees
(2) Fulfillment Fees
(3) Removal Order Fees
(4) Returns Processing Fees
(5) Unplanned Services Fees
(6) Long-term Storage Fees

For more information on Fulfillment Fees, check out our Pricing page here. You can also use the Amazon FBA Revenue Calculator on Seller Central to estimate your FBA fees.

5. Do I need a Professional selling plan to use Amazon FBA?

You can use Amazon FBA with either an Individual or a Professional selling plan. However, FBA might be a more cost-effective choice if you sell 40 items or more per month with a Professional plan.

To determine whether FBA is right for you, calculate your margins by taking storage and fulfillment fees into account, or use the Fulfillment by Amazon Revenue Calculator on Seller Central to estimate your FBA fees.

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6. If I’m looking to sell my products on Amazon.com, can I ship my products to a Singapore fulfillment center (FC)?

The Singapore FC is for products sold on Amazon.sg. To sell on Amazon.com, your shipment has to be delivered to a US FC assigned for products sold on Amazon.com.

7. Which Amazon Fulfillment Center (FC) in the US do I ship my inventory to?

When you create your shipment plan, the FCs are selected for you. Your shipment may be divided into multiple shipments based on products you are shipping, where you are shipping from, and locations to allow for faster shipment times for customers.

8. If I use Amazon FBA, what courier service should I use to send my stock from where I’m based to the fulfillment center in the US?

Visit this page for our extensive network of vetted third-party service providers who will help you with everything you need to launch, manage, and grow your business on Amazon.com.

For more information on our Service Provider Network (SPN), learn more here.

9. Can I send my products directly from China to a fulfillment center in the US?

Yes, you can arrange for your logistics agent or shipper to send your products directly from China to our FCs in the US.

10. Can I try using Amazon FBA?

Through New Seller Incentives (NSI), new sellers on Amazon’s professional selling plan can qualify for a suite of benefits designed to help you launch, grow, and go global. FBA benefits include:

US$100 in credits in inventory shipping fees for using the Amazon Partnered Carrier program or US$200 in credits in fulfillment fees for using Amazon Global Logistics.

• Automatic enrollment in FBA New Selection, which provides free monthly storage, liquidations, and return processing for your eligible new-to-FBA ASINs.

Find out more about NSI FBA benefits below

11. How do I add products to Amazon FBA?

Once you’ve decided what you want to send to Amazon fulfillment centers, enroll products in FBA from your Seller Central account by one of two methods:

Option 1: When adding new inventory, select “Amazon will ship and provide customer service (FBA)” in the “Offer” tab.

Option 2: If you’ve already added products and want to convert them to FBA, hover over Inventory in the Seller Central main menu and select “Manage Inventory.” Click the “Edit” drop-down menu to the right of any product you’d like to fulfill through Amazon and choose “Change to Fulfilled by Amazon.”

Whenever you add or convert products to FBA, be sure to double check you’ve entered product dimensions correctly to help avoid inventory issues down the road.

See the step-by-step Amazon FBA coaching guide for beginners here.

12. How do I manage my inventory with FBA?

The FBA Dashboard (Amazon professional selling plan required) provides a summarized view of your FBA business, your Inventory Performance Index (IPI) score, along with key influencing factors including sales, shipments, inventory, and FBA opportunities. You can then use this dashboard to manage excess inventory, track inventory age, fix stranded inventory, and restock inventory. Click here to learn more about using the dashboard.

13. Are my products suitable for FBA?

Generally speaking, most products for sale in Amazon’s store are eligible for FBA. You can sell virtually anything — from teas to quirky T-shirts or surfboards. Some products require prior approval before you can sell them. In addition, certain products are either not eligible for FBA or must meet specific requirements before qualifying for FBA. Learn more about FBA Product Restrictions here.

14. How do I prepare my products for FBA?

(1) Create product listings and approvals
(2) Print and paste product label / FNSKU
(3) Create shipment plan
(4) Print and paste FBA barcode
(5) Contact your logistics partner
(6) Send and track your shipment

Download our US FBA Guide to learn more about inventory preparation.
Whether we had 10 orders a month or 10,000 orders a month, the incremental amount of effort on our end was minimal thanks to Fulfillment by Amazon (FBA).
Samuel & Sing ChuenNaoki Matcha | Singapore seller in the US & UK
For more information about ecommerce fulfillment options, check out the article here.

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