How does Amazon FBA work?

Step 1: List your products

Now that your account is ready, it's time to list your products on Amazon. Listing your products correctly ensures they are visible to your customers and rank well in search results.

How to add products to your Amazon catalog?

Go to Seller Central → “Inventory” → “Add a Product”.
Search for your product or create a new listing if it doesn’t exist.
Fill in product details, including title, description, bullet points, and images.
Choose Fulfillment by Amazon (FBA) as your shipping method to let Amazon handle storage and delivery.

Set and optimise competitive pricing:

Research competitor prices to set a competitive price that attracts customers.
Enable Amazon’s automated pricing tool to adjust your prices based on market trends.
Choose FBA as your fulfillment method to qualify for Prime shipping, increasing your product’s visibility and appeal.

Optimizing listings with keywords, images, and descriptions:

Use high-quality images that showcase your product from different angles.

Add relevant keywords in your title, description, and backend search terms to improve visibility.
Write clear and engaging bullet points that highlight product benefits and features.

By optimizing your listings for Amazon, you increase your chances of reaching more customers and making consistent sales.

Step 2: Prepare and ship inventory

Once your products are listed, the next step is to send them to Amazon’s fulfillment centers so they can be stored and shipped to customers when orders come in.

Understand Amazon’s FBA packaging and labeling requirements:

Amazon has strict packaging and labeling rules to keep the fulfillment process efficient.

Each product must have a scannable barcode (FNSKU or UPC) to track inventory.
Products should be securely packed to prevent damage during shipping.
If required, use poly bags or bubble wrap for fragile items.
Amazon provides detailed packaging guidelines that you must follow to avoid rejections.

Choose between Amazon-partnered carriers or self-shipping:

Here, you can choose how you want to send inventory to Amazon’s warehouses:

Amazon-partnered Carriers: Amazon offers discounted shipping rates with trusted carriers like UPS and FedEx.
Self-shipping: You can use your own shipping methods, but this often costs more.

Step 3: Amazon stores your inventory

Once your inventory arrives at Amazon’s fulfillment centers, Amazon takes full control of storage and inventory management. This means they track, organize, and store your products in their warehouses until a customer places an order.

How do Amazon’s fulfillment centers manage your stock?

Amazon categorizes and stores your products in its vast network of fulfillment centers across the country.
Products are stored based on demand and location to ensure faster delivery to customers.
Amazon’s system tracks stock levels in real time, making it easy for you to monitor your inventory.

FBA storage fees and inventory placement:

Monthly storage fees: Amazon charges fees based on the size and volume of your products stored.
Long-term storage fees: If your inventory sits in Amazon’s warehouse for over 365 days, additional charges apply.
Amazon automatically distributes inventory to different fulfillment centers to optimize delivery times.

Step 4: Customer places orders

When a customer shops on Amazon, FBA products offer a seamless buying experience. Thanks to fast shipping and Prime eligibility, FBA listings mainly rank higher and convert better than non-FBA products.

How do FBA products get Prime eligibility?

Products fulfilled by Amazon automatically qualify for Prime shipping, meaning customers get their orders faster.
Prime members actively search for and prefer Prime-eligible products, which increases your chances of making a sale.
Fast shipping improves the overall customer experience, leading to better reviews and repeat purchases.

What happens when a customer places an order?

Order processing: As soon as a customer completes a purchase, Amazon’s system processes the order automatically.
Picking & packing: The product is retrieved from the nearest fulfillment center, securely packed, and prepared for shipping.
Shipping to customer: Amazon’s trusted delivery partners ensure timely delivery based on the shipping speed chosen by the buyer.

Step 5: Amazon picks, packs, and ships orders

Once a customer places an order, Amazon’s advanced fulfillment system takes over, ensuring fast and accurate delivery. This automated process minimizes delays and errors. It ultimately helps you to maintain high customer satisfaction.

Amazon’s automated fulfillment process:

Amazon’s system immediately processes the order once it is placed.
The nearest fulfillment center picks your product from its inventory.
The item is then carefully packed using Amazon’s standardized packaging guidelines.
The package is labeled and handed off to a trusted delivery carrier for shipment.

How does Amazon ensure fast and accurate delivery?

Barcode scanning at each step prevents shipping mistakes.
Automated sorting ensures the package is sent from the nearest warehouse.
AI-powered logistics planning selects the best carrier and fastest route.

Step 6: Amazon handles customer service & returns

The main advantage of using Fulfillment by Amazon (FBA) is that Amazon takes care of customer service and returns, saving you from handling inquiries, complaints, and refunds yourself.. This ensures a smooth shopping experience for customers while reducing the workload for you.

How does Amazon manage customer inquiries and complaints?

Amazon provides 24/7 customer support, handling questions about orders, deliveries, and product issues.
Buyers can easily contact Amazon through chat, phone, or email, receiving fast and professional assistance.
By letting Amazon handle customer service, you can focus on growing your business instead of managing customer queries.

Process for handling returns and refunds:

If a customer wants to return an item, they initiate the return through Amazon.
Amazon provides prepaid return labels, making it easy for customers to send products back.
Once the item is received, Amazon inspects it and issues a refund automatically if it meets the return criteria.
As a seller, you are notified about returns and monitor your product status through Amazon Seller Central.