Quick answer: Fulfillment by Amazon (FBA) lets you store inventory in Amazon’s fulfillment centers while Amazon picks, packs, ships, and handles customer service and returns for those orders. FBA products are eligible for Prime shipping. In return you pay fulfillment, storage, and other fees, and you must follow Amazon’s rules on what products FBA accepts, how they are packaged and labeled, and how expiration-dated items are handled. Amazon reimburses eligible lost or damaged units, up to $5,000 per unit.
FBA removes a lot of operational work, but it adds rules that sellers often learn only after inventory is refused or disposed of. This guide covers the essentials, using Amazon’s own FBA pages.
How FBA Works
- Enable FBA in Seller Central.
- Choose eligible products and assign them to FBA.
- Prepare, pack, and label products and send them to Amazon using the Send to Amazon workflow.
- Amazon receives and stores the inventory, then packs and ships orders and handles customer service and returns.
- Manage stock with the FBA Dashboard and tools such as the Restock tool and replenishment alerts.
What Amazon Handles and What You Still Own
| Amazon handles | You remain responsible for |
|---|---|
| Storage in the fulfillment network | Sending products that are authentic, legal, and allowed in FBA |
| Picking, packing and shipping orders | Packaging, prep and labeling to Amazon’s standards |
| Customer service for FBA orders | Accurate listings and correct expiration attributes |
| Returns processing | Product quality, which shows up in returns and reviews |
| Prime eligibility for FBA offers | Account health and policy compliance |
FBA Fees to Plan For
Amazon lists several fee types for FBA:
- Fulfillment fees for picking, packing, shipping, customer service, and returns, based on price, weight, and dimensions
- Monthly storage fees based on the space your inventory occupies
- Aged inventory fees for items stored more than 181 days
- Returns processing fees on orders where Amazon gives the customer free return shipping
- Removal, disposal and liquidation fees per item
- Inbound placement fees for distributing inventory across fulfillment centers
Products FBA Will Not Accept
Amazon notes that some products can be sold on Amazon but are not eligible for FBA. Most products regulated as hazardous materials by the US Department of Transportation cannot be processed by FBA, and there are separate rules for expiration-dated and temperature-sensitive products. Amazon warns that non-compliance can lead to refused, disposed, or returned inventory, blocked future shipments, charges, account deactivation, or fines.
Packaging and Labeling Basics
- Each unit needs a scannable barcode with human-readable numbers, placed where it can be scanned.
- Each FNSKU must correspond to one unique product, including separate FNSKUs for different sizes, colors, or conditions.
- Cover or make unscannable any old barcodes on shipping boxes.
- Units must be in single, secure packaging; Amazon does not assemble products sold as one piece.
- Inventory with non-compliant or unsafe packaging may be refused or disposed of at your expense and is not eligible for reimbursement.
Expiration-Dated Products
Amazon treats any product with a shelf life as expiration-dated, including food, supplements, pet food, cosmetics, and cleaning products. Set the expiration attributes when you create the ASIN, ship with enough remaining shelf life, and label ingestible products with an expiry or manufacturing date. Products that arrive expired are marked for disposal and cannot be returned to you.
Lost or Damaged Inventory
Amazon’s FBA inventory reimbursement policy says that if an eligible item is lost or damaged at a facility or by a carrier operating for Amazon, Amazon will replace it or reimburse you. Eligibility requires, among other things, that the item was registered in FBA, met FBA requirements, matched your shipping plan, and was not damaged by a customer, and that your account is in normal status. The maximum reimbursement for a single unit is $5,000.
Amazon also warns that submitting poorly researched, premature, or very large numbers of claims in a short time can lead to delayed support, monitoring, investigation, and account action.
Our Amazon inventory reconciliation service reviews FBA records for reimbursements you are owed. To keep an FBA account healthy, see our Amazon account health maintenance service, and if the account is suspended, our Amazon suspension and reinstatement team.
Frequently Asked Questions
What does Amazon do in FBA?
Amazon stores your inventory, picks, packs, and ships orders, and handles customer service and returns for FBA orders.
Are FBA products Prime eligible?
Amazon says FBA products are eligible for free, two-day shipping through Prime.
What happens to inventory stored a long time?
Amazon charges aged inventory fees for items stored in a fulfillment center for more than 181 days.
Does Amazon pay for lost FBA inventory?
Yes, for eligible items lost or damaged in Amazon’s network, up to $5,000 per unit.
Can any product be sold through FBA?
No. Some products, including most hazardous materials, are not eligible for FBA even if they can be sold on Amazon.
Get Help With FBA
Submit your case for a free assessment, or book a consultation.
Sources
- Sell on Amazon, Fulfillment by Amazon
- Amazon Seller Central, FBA product restrictions
- Amazon Seller Central, Product packaging requirements
- Amazon Seller Central, Expiration dates on FBA products
- Amazon Seller Central, FBA inventory reimbursement policy
