FBA

Fulfillment by Amazon

FBA (Fulfillment by Amazon) is Amazon's logistics service where sellers send inventory to Amazon's fulfillment centers, and Amazon handles storage, picking, packing, shipping, customer service, and returns for those products.

Why FBA Matters for Amazon Sellers

FBA dramatically impacts profitability calculations, Buy Box eligibility, Prime badge access, and customer trust. Understanding FBA fees is essential for accurate unit economics modeling and competitive positioning on Amazon.

How RIDGE Analyzes FBA

Every RIDGE report includes detailed FBA fee breakdowns by marketplace, including fulfillment fees, storage fees, referral fees, and long-term storage charges. Our unit economics models account for all FBA cost components to project realistic margins.

Practical Example

A product weighing 1.2 lbs selling for $24.99 on Amazon US might incur $5.40 in FBA fulfillment fees, $3.75 in referral fees, and $0.40 in monthly storage — totaling $9.55 in Amazon fees per unit.

Frequently Asked Questions

Is FBA worth it for new sellers?+

For most sellers, FBA provides significant advantages: Prime badge, Buy Box preference, customer trust, and Amazon handling logistics. The trade-off is higher fees. RIDGE reports calculate whether FBA or FBM is more profitable for your specific product.

What are FBA storage fees?+

Standard monthly storage is $0.87/cubic foot (January-September) and $2.40/cubic foot (October-December) on Amazon US. Long-term storage surcharges apply to inventory stored over 180 days.

Related Terms

Get Professional Analysis

Need deep market analysis backed by 39 data sources? Order a RIDGE report.

Order Analysis