Amazon FBA

Amazon FBA is a program in which a seller sends their inventory to Amazon’s fulfillment centers, and Amazon takes care of the rest: storing the products, picking and packing orders, shipping them, handling customer service and processing returns. The seller focuses on the product, marketing and catalog, while Amazon handles the logistics.

FBA products usually carry the Prime badge, which increases visibility and conversion rates. They also have a better chance of winning the Buy Box, the main purchase button on each product page.

 

How It Works

  1. Seller registration in Seller Central and FBA activation.
  2. Listing creation: product page, photos, price and barcode (EAN/UPC or Amazon label).
  3. Inbound shipment plan: the seller states how many units they will send, and Amazon assigns the destination fulfillment center.
  4. Product preparation (prep): labeling, packaging and compliance with Amazon’s requirements.
  5. Shipment to the fulfillment center via a carrier or an Amazon-partnered service.
  6. Receiving and storage: Amazon logs the stock and makes it available for sale.
  7. Sale and delivery: Amazon packs and ships each order to the customer.
  8. Customer service and returns: handled by Amazon, although the seller bears the costs.
  9. Payout: Amazon pays the seller for sales, minus its fees.

 

Typical Costs

  • Referral fee: a percentage of the sale price, depending on the category.
  • Fulfillment fee: based on the size and weight of the product.
  • Storage fees: charged by volume and time, with surcharges in peak season and for aged inventory.
  • Professional subscription: a fixed monthly fee for professional sellers.
  • Other costs: labeling, prep, returns and inventory removals.

Amazon updates these fees frequently, so always check the current official fee schedule in Seller Central before calculating margins.

 

Advantages

  • Logistics solved: no need for your own warehouse or shipping team.
  • Prime and customer trust: higher conversion and better ranking.
  • Fast delivery: an established logistics network.
  • Customer service and returns handled by Amazon.
  • Scalability: the business can grow without expanding its own infrastructure.
  • European reach: with Amazon’s pan-European tools, sellers can store inventory in several countries and sell across multiple marketplaces.

 

Disadvantages and Risks

  • Accumulating costs that can sharply reduce margins on cheap or bulky products.
  • Strict prep requirements: a labeling or packaging error can lead to rejections, delays or charges.
  • Inventory limits and storage restrictions.
  • Dependence on Amazon: changes in policies or fees, and the risk of account suspensions.
  • Commingled inventory and fraud: products from different sellers can get mixed up if inventory isn’t managed carefully.
  • Restricted products: some categories, such as batteries, liquids or hazardous goods, require approval or are not accepted.

 

How It Connects to Parcel Forwarding and Your Platform

This is where Amazon FBA fits directly with AdminShipping. Many FBA sellers buy products abroad and need them prepared and sent to an Amazon warehouse in Europe. A platform like yours can offer:

  • Receiving goods from suppliers at a warehouse in Spain.
  • Inspection and quality control with photos before sending to Amazon.
  • Prep services: FNSKU labeling, packaging, poly bagging, removal of original packaging and bundling.
  • Batch consolidation of shipments from several suppliers.
  • Shipping to Amazon fulfillment centers, with the required documentation and delivery appointments.
  • Returns and surplus stock handling for items removed from Amazon, refurbished or reshipped.
  • Online Buyer service: if the seller does online arbitrage, the platform can buy on their behalf from stores that don’t accept their payment method.

This turns the platform into an FBA prep center for Amazon sellers, a high-value, recurring service.

Amazon FBA is a convenient way to sell at scale without managing logistics, in exchange for fees and compliance with Amazon’s rules. For a parcel forwarding platform, it is a natural opportunity: sellers need to receive, prepare and ship goods to Amazon warehouses, which is exactly the kind of service you already offer.

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