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GlossaryFulfillment

FBA

Also known as: Fulfillment by Amazon

Amazon's fulfillment service: sellers ship inventory to Amazon, Amazon handles storage, picking, packing, shipping, and customer service.

FBA (Fulfillment by Amazon) is the program where sellers send their inventory to Amazon's fulfillment centers, and Amazon handles all the logistics: storage, packing, shipping, returns, and customer service. The seller is responsible for sourcing, listing, pricing, and inventory replenishment; Amazon handles everything from "customer clicks Buy" to "package arrives at customer door."

FBA sellers get major Buy Box advantages over FBM sellers, automatic Prime eligibility on most listings, and offload the hard logistical problems. The trade-off: FBA fees (referral, fulfillment, storage, AWD/inbound placement, capacity caps, long-term storage surcharges) eat 25-45% of revenue depending on the product, and you give up direct control over inventory health.

Most serious Amazon businesses run FBA for the bulk of their catalog and use FBM only for oversized, hazmat, or low-velocity SKUs where the FBA fee structure doesn't make sense. SellerVault is built FBA-first but supports FBM SKUs as a separate competitive pool in the repricer.

See it in action

FBA reimbursement recovery