FBA

Fulfillment

Fulfillment by Amazon. Amazon stores the seller's inventory in its fulfillment centres, and picks, packs, ships, and handles customer service for each order. FBA listings are eligible for Prime.

Fulfillment by Amazon (FBA) allows sellers to store their products in Amazon's fulfillment centers across the EU, including DE, FR, IT, ES, PL, and CZ. Sellers benefit from Amazon's logistics, as the company handles picking, packing, shipping, and customer service for each order, making FBA listings eligible for Amazon Prime. FBA fees in the EU include a per-unit fulfillment fee, which varies by size and weight tier, and a monthly storage fee ranging from €26 to €36 per cubic meter, with increased storage costs during the peak holiday season from October to December. Sellers must also consider the Inventory Performance Index (IPI), which requires maintaining a minimum score of 400 to avoid long-term storage fees. A trade-off exists for sellers using FBA, as they may face higher fees compared to Merchant Fulfilled Network (MFN) options, but gain access to a larger customer base and increased visibility. Additionally, sellers utilizing FBA must ensure compliance with VAT regulations in the respective EU countries where their inventory is stored, which may involve registration in multiple jurisdictions. The FBA program also offers tools like the FBA Revenue Calculator, helping sellers estimate their potential profits after fees.

Correlati: MFN, Pan-EU, Storage Fee