What is FBA?
FBA stands for Fulfillment by Amazon.
With FBA, you send inventory to Amazon’s warehouses and Amazon stores, picks, packs and ships orders and handles customer service and returns, for per-unit and storage fees.
Example
You ship 500 units to Amazon; each order is shipped by Amazon with Prime eligibility.
Why it matters
FBA usually boosts conversion through Prime, but its fees must be included in your profit maths.
Calculate it: Amazon Fee Calculator
Referral fees by category, FBA and profit
Flashcard
What is FBA (Fulfillment by Amazon)?
Tap to reveal the answerWith FBA, you send inventory to Amazon’s warehouses and Amazon stores, picks, packs and ships orders and handles customer service and returns, for per-unit and storage fees.
Related terms
FBM
With FBM you store and ship Amazon orders yourself (or through your own logistics partner) instead of using FBA.
Referral fee
A referral fee is the commission a marketplace like Amazon or Walmart takes on each sale, as a percentage of the total sales price (often including shipping).
Buy Box
The Buy Box (Featured Offer) is the main “Add to Cart / Buy Now” box on an Amazon product page. When several sellers offer the same product, Amazon chooses which offer wins it.
Read more in our guide: Amazon Seller Fees Explained (2026)