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E-Commerce

What is Amazon FBA (Fulfillment by Amazon)?

You send your products to an Amazon warehouse and Amazon handles storage, packing, shipping and returns.

Detailed definition

FBA advantages: the Prime badge (higher conversion), the Amazon guarantee, customer service handled by Amazon. Disadvantage: high commission plus storage and long-term fees. The alternative is FBM (Fulfillment by Merchant) — you ship yourself for a lower commission. In general: FBA for high-conversion products, FBM for niche or bulky ones.

Examples

  • A textile brand entering the US market selling with the Prime badge through FBA; profitability is calculated together with storage and commission costs.

Related terms

Category E-Commerce

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