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Fulfillment & Logistics

FBA (Fulfillment by Amazon)

Amazon's fulfillment service where sellers ship products to Amazon warehouses, and Amazon handles storage, packing, shipping, customer service, and returns.

What Is FBA?

FBA (Fulfillment by Amazon) is a service where you send your inventory to Amazon's fulfillment centers. When a customer orders, Amazon picks, packs, and ships the product. They also handle customer service and returns for FBA orders.

FBA vs FBM

With FBM (Fulfilled by Merchant), you handle all fulfillment yourself. FBA offers the advantage of Prime eligibility, Buy Box preference, and hands-off logistics - but at a cost (FBA fees).

Free tool FBA Profit Calculator Referral fees are only part of the picture. See net profit, margin, ROI and breakeven after FBA fees, product cost, shipping and ads. Open

Related Terms

Buy Box (Featured Offer)

The "Add to Cart" section on a product detail page. When multiple sellers offer the same product, Amazon rotates the Buy Box among eligible sellers based on price, fulfillment, and performance metrics.

FBA Fees (Fulfillment by Amazon Fees)

The fees Amazon charges for storing, picking, packing, and shipping your products through the FBA program. Includes fulfillment fees (per unit) and monthly storage fees.

FBM (Fulfilled by Merchant)

A fulfillment method where the seller handles storage, packing, shipping, and customer service directly, rather than using Amazon's FBA warehouses.

IPI Score (Inventory Performance Index)

Amazon's metric (0-1000) that measures how efficiently you manage FBA inventory. Scores below the threshold can result in storage limits and higher fees.

Track This in SellerLegend

FBA Storage & Shipment Tracking

Monitor FBA inventory across all fulfillment centers with detailed storage cost tracking and inbound shipment status. Track monthly storage fees, long-term storage charges, aged inventory, and receive shipments to avoid surprise costs and optimize warehouse placement.

Inventory Management & Forecasting

Prevent Amazon FBA stockouts and reduce excess inventory costs. Track sales velocity across multiple time periods, get a recommended purchase date, and get data-driven quantity recommendations to maintain optimal stock levels.

Want to track this metric continuously?

SellerLegend gives you a frequently-updated dashboard with all the Amazon metrics that matter.

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