What is Amazon FBA and how does it work?

What is Amazon FBA and how does it work?

The Fulfillment by Amazon FBA is a business model that has revolutionized the way that sellers sell on Amazon and other online markets. Instead of you handling customer service, packing and shipping the products to the customer, Amazon does this for you. When Amazon fulfills your products on your behalf, you do not have to worry about storage and transport logistics.

How does Fulfillment by Amazon work?

A seller is required to list their items and use unique barcodes to differentiate their products from those of other sellers, pack them, and have them shipped to an Amazon fulfillment center. Amazon will then store your items in their warehouses after which they will be available for shipping and sale. When a customer chooses to purchase your item, Amazon retrieves your specific item and ships it to your customer. Typically, you can sell private-label products by finding generic products that are selling well on Amazon, and then create your own logo, packaging, and market them better than your competitors. Also, you can also use this platform to buy products and raw materials from other countries.

What are the benefits of the FBA?

Whether you want to ship goods to your customer or source product or raw materials from another county, Amazon offers you a two-day and overnight shipping of orders and handles all other logistics as well as any other fulfillment issues that may arise.

Those that have signed up for prime Amazon membership enjoy two-day free shipping of items. Amazon’s super-fast shipping and excellent customer service is an absolute game changer.

Typically, FBA saves you a lot of time that could have been spent packing and shipping each order as it is made by your customers. Outsourcing this task to Amazon, however, frees up valuable time and expands the scalability of your business.

Sourcing from China

Products-sourcing from China have now been made easier and quicker. With Amazon FBA, entrepreneurs receive world-class service when outsourcing from China. Sellers can design products, which are made by suppliers in China to sell on Amazon or ship them to their country. Although Amazon will not serve as a direct importer of such products, they will carry out direct shipments with their corresponding labeling to Amazon warehouses and send them to your destinations.


This all does come at a price, but if you have good margin in the products you sell, it could be well worth it.  As with anything, I recommend you do your research to do what is best for you and your products.

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