Fulfillment by Amazon (FBA): How It Works, Costs, Fees & Pros/Cons

Fulfillment by Amazon (FBA) is a one-stop solution to help sell the merchants’ products to Amazon sellers. When a merchant uses the FBA, they send their products to the Amazon Fulfillment Centers and Amazon takes care of the rest. 

If you’re an ecommerce seller looking to offer fast delivery without managing your own warehouse, FBA may be a strong fit. Amazon handles storage, packing, shipping, customer service, and returns, letting you focus on growing sales.

However, FBA isn’t the only way to offer Prime delivery. Many sellers also compare Seller Fulfilled Prime vs FBA to decide which model better suits their operations. While FBA outsources fulfillment  to Amazon, Seller Fulfilled Prime (SFP) allows you to store and ship products from your own warehouse while still offering Prime delivery. Understanding the differences between these two options can help you choose the right balance between control, cost, and convenience.

However, FBA’s fees, inventory rules, and limited control can be costly for merchants with slow-moving, bulky, or multi-channel inventory. In addition, sellers must comply with various amazon shipping restrictions, including product eligibility requirements, packaging standards, and size or weight limits that can impact how and where items are fulfilled.

Before committing, it’s important to understand whether FBA aligns with your shipping volume, sales channels, and growth strategy.

How Does It Work?

Fulfillment by Amazon (FBA) can be used not only by Amazon marketplace sellers, but also by other online retailers. In the United States, an estimated 73% of Amazon sellers use FBA, according to Statista.

• Prime-Eligible Shipping Perks (Fast & Free Delivery): Products fulfilled through FBA are eligible for Prime benefits, including fast and free shipping options such as two-day delivery.
• Amazon Branding: Amazon is a household name and customers are likely to recognize and purchase products from sellers who are associated with the brand name. 
• Multi-Channel Fulfillment:  Amazon can fulfill your orders across multiple channels and is not limited to its own marketplace. Similarly, sellers can also store their products at the Amazon Fulfillment Center 
• No Minimum Inventory Requirements: There are no minimum inventory requirements, making FBA suitable for businesses of all sizes.
• Discounted Fulfillment Rates for Small & Light Items: Amazon offers discounted fulfillment rates for small and lightweight items, helping reduce overall shipping costs. 
• Shipping Standardization: All the products processed via FBA are uniform since it is managed under the umbrella policy of Amazon. This makes the package very recognizable and acceptable to the customer who is aware of the Amazon branding and is likely to pick it from the category lot. 
• End-to-End Fulfillment Managed by Amazon: Amazon manages the entire fulfillment process, simplifying operations for merchants.
• Automatic Sales Proceeds Calculation (Fees Deducted Upfront): Sales proceeds are automatically calculated, with service fees deducted before payout.
• Direct Bank Deposits (Typically Within Two Weeks): Funds are deposited directly into your bank account, typically within two weeks.
• Reimbursement for Eligible Lost or Damaged Inventory: Amazon may reimburse eligible inventory that is lost or damaged within its fulfillment network.

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How Much Does FBA Cost?

The Fulfillment by Amazon (FBA) fulfillment fee (previously known as the "pick and pack" fee) is a per-unit fee charged to fulfill items to customers for purchases in our store. The fee varies depending on an item’s category, size, and weight.

Starting January 15, 2026, Amazon will switch fulfillment fees back to non-peak (standard) rates. Here’s what will change:

Fulfillment fee changes by price (Standard size)

How fees is calculated (based on weight)

Shipping weight for calculating fees for small standard and extra-large 150+ lbs is based on unit weight. 

All other size tiers use greater unit or dimensional weight. For detailed definitions of each size tier, go to Product size tiers.

Extra-Large (up to 150lb) exceeding 96 inches for the longest side or 130 inches for length plus girth will be considered Overmax products and will incur a fee in addition to FBA fulfillment fees.

FBA Non-Peak Fulfillment Fees (From January 15, 2026 – Summary)

Other fees and programs to know

• Overmax handling fee (new)
  Starting January 15, 2026, extra charges will apply to Extra-Large items (up to 150 lb) if they are:
  
  
  • over 96 inches on the longest side, or
  • over 130 inches when you add length + girth
    
    
• Ships in Product Packaging (SIPP)
  With SIPP, items ship in their original packaging (no extra Amazon box).
  
  
  • Standard-size items approved for SIPP will automatically get lower FBA fees per unit shipped.
  • Small and Bulky items not approved for SIPP will have extra fees.
    
    
• Low-inventory-level fee
  For standard-size and bulky items, Amazon may charge a fee when your stock is below 28 days of supply compared to demand. This is meant to help keep delivery fast and shipping costs efficient.
  
  
• Low-Price fulfillment fee (under $10)
  Products priced under $10 will automatically qualify for Low-Price FBA rates, which are about $0.86 cheaper per unit on average than standard FBA rates.

How Does Fulfillment by Amazon (FBA) Work?

Using the Amazon fulfillment service will immediately qualify your products for Prime, increasing your audience reach and sales potential. 

Fees Per Unit

There are different price categories for standard and oversized items, according to their weight. These are all charged at different unit prices.

• Standard small size 10oz or less - $2.41/unit
• Standard small size 10-16oz - $2.48/unit
• Standard large size 1lb or less - $3.19/unit
• Standard large size 2-3lbs - $5.26 (additional $0.38/lb after 3lbs)
• Small oversize 71lb or less - $8.26 (plus $0.38/lb above 20lbs)
• Medium oversize 151lbs or less - $9.79 (plus $0.39/lb above 90lbs)
• Large oversize over 151 lbs - $75.78
• Special oversize - $137.32
• Additional $0.40/unit for clothing
• Additional $0.11/unit for items with lithium batteries

Monthly Storage Fee Per Cubic Feet

For standard size storage, the monthly charge from January to September is $0.69/cubic foot, and from October to December it is $2.40/cubic foot. For oversized storage, the monthly charge from January to September is $0.48/cubic foot and from October to December it’s $1.20/cubic foot.

To calculate the exact cost that you have to pay for storage, you can use the Fulfillment by Amazon calculator. You can calculate all the storage and fulfillment costs that you have to pay and also calculate the revenue you will be left with.

Here’s a quick summary of how the service works:

• Register for FBA: Sign in to Seller Central → Gear icon → Account Info → Seller Account Information → Manage → Register for FBA.
• List products for FBA: Select eligible products and assign them to FBA while listing, or convert existing listings to FBA.
• Send inventory to Amazon: Use the Send to Amazon workflow to create shipments, prepare, pack, and label products.
• Amazon fulfills orders: Amazon stores inventory, picks, packs, ships orders, and handles customer service and returns.
  
• Manage inventory: Track and manage stock using the FBA Dashboard, Restock tool, Replenishment Alerts, and Liquidations.
• Optimize and scale: Use programs like Amazon Global Logistics, Remote Fulfillment with FBA, and Amazon Export to grow internationally.

Amazon has some 100 warehouses around the US, though exactly which warehouse will work for you depends on the products you want to store.

Advantages and Disadvantages of Using Fulfillment by Amazon

Fulfillment by Amazon (FBA) can simplify logistics by allowing Amazon to store, pack, ship, and support orders on your behalf. Like any fulfillment solution, it comes with clear benefits as well as trade-offs to consider before committing.

Things to Keep in Mind if You Want to Use Fulfillment by Amazon

Fulfillment by Amazon is designed to cater to most eCommerce merchants and retailers but there are a few points to keep in mind before you get started.

• If you send fraudulent or illegal items to the fulfillment center, you can be banned for life
• Figure out which warehouse you need to ship your products to
• Make sure you use FBA for products that sell quickly to avoid storage fees
• Be sure to keep an eye on your inventory
• Don’t forget to market your products to get good sales
• Use kitting to further cut costs and increase sales

Amazon is Great but Try Fulfillment by Easyship!

While Fulfillment by Amazon works well for Amazon-first sellers, many growing businesses need more flexibility than a single fulfillment network can offer.

That’s where Easyship comes in.

Easyship connects merchants to a global network of fulfillment partners and courier services — without locking you into one platform, one warehouse, or one sales channel. Whether you use FBA, third-party fulfillment, or a hybrid strategy, Easyship helps you:

• Compare rates, delivery times, and duties upfront
• Ship domestically and internationally with multiple carriers
• Maintain control over costs, branding, and customer experience
• Scale fulfillment beyond Amazon as your business grows

FBA is great for simplicity. Easyship is built for flexibility, growth, and multi-channel commerce - sign up for a free account today!

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If you feel that FBA is not right for you, don’t worry- we can still guide you to cheap fulfillment. Easyship partners with many affordable courier services and hybrid shipping solutions - sign up for a free account today!

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Fulfillment by Amazon FAQs

How much does Fulfillment by Amazon cost?
Fulfillment by Amazon (FBA) charges fees for order fulfillment (picking, packing, shipping, and customer service) and inventory storage. Costs vary based on product size, weight, price, and how long items are stored.

What is the average fulfillment cost?
On average, FBA fulfillment fees range from about $2.50 to $7.00 per unit for standard-size products, with higher costs for bulky or heavy items.

What percentage does Amazon take from a sale?
Amazon typically charges a referral fee of 8% to 15% of the sale price, depending on the product category. This fee is separate from FBA fulfillment and storage fees.

How do I upload my listings on Amazon?

FBA provides three different ways to upload your listings, depending on the size and needs of your business:

1. Add a Product: If you only have a small number of items for Amazon to fulfill, you can list them individually through Seller Central, our online portal for sellers. You can either match your products to existing listings in the Amazon.in catalog or create new ones. After listing your products, you can easily convert them to Fulfilled by Amazon (FBA).

2. Flat File Upload: If you have a larger inventory, you can upload your listings in bulk using a flat file through our web tool. We provide an Excel template to help you prepare the file. This option allows you to list multiple products at once and enroll them directly in Fulfillment by Amazon.

3. API Integration: For businesses with a large catalog and technical development resources, you can integrate your website or inventory management system directly with Amazon’s catalog using API integration. This method enables you to list products in bulk and set them up for Fulfillment by Amazon automatically.