The Definitive Guide On How To Sell On Amazon FBA in 2023

Fulfillment by Amazon (FBA) service

Last updated on September 6th, 2023

Written by Ken Zhou

The Fulfillment by Amazon (FBA) service was launched in 2006 to streamline processes for both Amazon sellers and customers. Today, learning how to sell on Amazon FBA made sellers’ processes convenient and seamless while customers receive faster, more reliable shipping and delivery. 

This article will give you an in-depth explanation of Amazon FBA and how you can use it to improve operations to increase sales and enhance brand awareness on Amazon. 

Amazon Prime delivery truck in the middle of the road

How Amazon FBA Works

Amazon FBA became the go-to solution for sellers who don't have their own logistics team, delivery trucks, and warehouses to store their products. The eCommerce shipping and logistics will take care of your deliveries, but it comes with a price. For a better understanding, here's the process:

  • Seller sends inventory to Amazon's fulfillment centers.
  • Amazon receives, sorts, and stores the inventory at the fulfillment center.
  • The customer orders the seller's product from the marketplace.
  • Amazon picks, packs, and ships the order to the customer.
  • Amazon will handle customer service.
  • If the customer wants to return the product, Amazon will also take care of it.
Amazon homepage on mobile

6 Benefits of the Amazon FBA Program

More than half of third-party sellers use Amazon FBA. It shows how valuable and useful this service is. Below are the reasons why you should become an Amazon FBA seller:

Top-Notch Logistics and Warehousing Facilities

You can access Amazon's high-end fulfillment centers, truck trailers, air freight, bicycle couriers, merchant vessels, and air drones. The Amazon workforce has years and years of experience and expertise you can take advantage of.

Prime-Eligibility Guaranteed

According to Statista, Prime subscribers spend an average of $1400 yearly compared to non-Prime members who only shell out $600 yearly. So, if you want to sell your products to this group of generous people, joining Amazon FBA gets you instant passes to be instantly qualified for Prime shipping. 

Chances to Win the Buy Box

The Buy Box is the most coveted space on the product detail page. It is the section where customers can quickly add items to their shopping carts. You can win the Buy Box if you're Prime-eligible because Amazon gives priority to them. 

Get the Best Deals on Shipping Rates

UPS, USPS, FedEx, and DHL Express are Amazon-partnered carriers. These shipping companies often grant Amazon discounted shipping rates. If you're an FBA seller, no need to negotiate to save on shipping fees because Amazon does it for you. Plus, your cargo is taken care of by reputable courier firms.

Effortless Scalability

Amazon has several programs under FBA that you can "add on" to your current business strategy and help scale your business quickly, as follows:

  • FBA Subscribe & Save — You can offer discounts on qualified FBA products to repeat customers.
  • FBA Small & Light — Small, lightweight, and cheap FBA inventory can get lower fulfillment fees.
  • FBA Export — You can cross borders and sell your products to more than 100 countries at no additional cost.
  • FBA Pan-EU — Let Amazon distribute and sell your products across European marketplaces at no extra charge with faster shipping time.
  • Multi-Channel Fulfillment — Amazon allows you to offer your products to third-party eCommerce sites or your site. Plus, they will pick, pack, and ship to your customers.
Amazon FBA fees

Amazon FBA Fees Explained

Amazon doesn't charge anything when they ship the order to customers, but you must be aware of the following Amazon FBA fees so you can manage your expenditures wisely:

Professional Seller Account Subscription Fee 

There are two types of seller plans you can choose from: 

  • Individual plan - costs $0.99 per item with no monthly subscription fee, for sellers only planning to sell fewer than 20 items per month.
  • Professional plan - is $39.99 a month and perfect for sellers planning to sell more than 20 items monthly. Perks include creating bulk listings through APIs, selling in restricted categories, advanced reporting features, promoting your products via Amazon advertising tools, and more.

Both plans allow you to have access to Amazon FBA.

Referral Fees

Amazon gets a commission for each item sold in their marketplace. It could be a flat fee of 15% or less. Referral fees are paid after the sale is made. Here is the current referral fee table:

Amazon deducts the greater of the applicable referral fee percentage or applicable per-item minimum referral fee.
Amazon Device Accessories 45% 
Baby Products 3.5% for items price < $500 6.0% for items price between $500-$10008.0% for items price > $1000 
Books 3.0% for items price < $300 4.5% for items price between $300 - $500 9.0% for items price between $500 - $100012.5% for items price > $1000
Camera and Camcorder 5% 
Mobile Phones5% 
Consumer Electronics Televisions, Laptops and PCs - 6.0%Landline phones - 7.0%
Electronic Accessories 17% 
Furniture (Indoor and Outdoor) 15.5% for items price < $15,00010% for items price > $15,000
Home Wallpapers - 11% Kitchen and Bath - 8.0% Security - 6% Waste and Recycling - 6% Other Categories -17% 
Musical InstrumentsKeyboards - 5%Guitars - 8% Others - 7.5% 
Office Products 8.0% for items price < $1000 9.0% for item price >$1000 
Sporting and Gym EquipmentSports Equipment - 6.0% for items price < $500- 8.0% for items price > $500
Gym Equipment - 9.0% for items price < $1000- 10% for items price  > $500
Toys and Games Toys - 11% Video Games and Consoles - 9% Online Game Services - 2%  

Categories requiring approval

Automotive Vehicles - 2% Tires and Rims - 5% Parts - 11% Cleaning Kits - 9% Accessories - 16% 
Beauty Products Fragrance - 14% Body - 7.0% Makeup - 6.0%Luxury Beauty Products - 5%
Clothing Accessories - 14% Shirts, Jackets, Shorts - 19% Baby Apparel - 14% 
Jewelry 22.5% for items price < $1000 24% for items price > $1000 
Grocery and Gourmet 4.5% for items price < $500 5.5% for items price $500 - $1000 8.0% for items price > $1000 
Personal Health Care 11% 
Luggage and Bags Handbags - 8.5% Suitcase - 5.5% Other Categories - 5.5% 
Footwear Shoes - 16% Kids Footwear - 15% Sandals and Floaters - 10.5% 
Watches 13.5% 

FBA Fees

Amazon FBA fees consist of four different fees rolled into one, including the storage, packing, and handling of your inventory. The category, weight, and size of the item are also considered in the computation. 

Standard size items Max dimensions Item weight Fulfillment fee (in USD) 

Small standard

15" x 12" x 0.75"
4oz or less $3.22
4oz to 8oz $3.40
8oz to 12oz $3.58
12oz to 16oz $3.77

Large standard 

18” x 14” x 8”
4oz or less $3.86
4oz to 8oz $4.08
8oz to 12oz $4.24
12oz to 16oz $4.75
1lb to 1.5lb $5.40
1.5lb to 2lb$5.69
2lb to 2.5lb$6.10
2.5lb to 3lb$6.49
3lb to 20lb $7.17 + $0.16/half-lb above first 3 lb
Oversized items Max dimensions Item Weight Fulfillment fee (in USD) 
Small oversize 60" x 30"70 lb or less$9.73 + $0.42/lb above first lb
Medium oversize108” (longest side)150 lb or less$19.05 + $0.42/lb above first lb
Large oversize 108” (longest side)150 lb or less$89.98 + $0.83/lb above first 90 lbs
Special oversize >108” (longest side)Over 150 lb$158.49 + $0.83/lb above first 90 lbs

Storage Fees

There are two types of storage fees:

Monthly Storage Fee

Amazon charges you for any space your inventory takes up in their fulfillment centers before the sale.

Storage Month Standard SizeOversize 
January - September$0.87 per cubic foot $0.56 per cubic foot 
October - December $2.40 per cubic foot $1.40 per cubic foot 

Long-Term Storage Fee

The aged inventory surcharge for Amazon is divided into two: 

271 to 365 days in storage$1.50 per cubic foot
More than 365 days in storage$6.90 per cubic foot or $0.15 per unit (fees apply whichever is greater) 

Removal Order Fees

Avoid long-term storage fee by requesting a removal order:

Size TierShipping Weight Removal Fee (in USD) 

Standard size 
0 to 0.5 lb$0.97
0.5+ to 1.0 lb$1.46
1.0+ to 2.0 lb$2.20
More than 2 lb$2.83 + $1.06/lb above 2 lb

Oversize and special handling
0 to 1.0 lb$3.12
1+ to 2.0 lb$4.07
2.0+ to 4.0 lb$5.56
4.0+ to 10.0 lb$9.43
More than 10.0 lb$13.05 + $1.06/lb above 10 lb

Returns Processing Fees

Amazon offers free returns for customers that the seller will shoulder. It is equivalent to the total fulfillment fee for a given product.

Additional FBA Fees

You may incur these fees when your inventory has no proper labeling or preparation. Amazon charges you a per-item fee for FBA label service, FBA prep service, manual processing service, and FBA repackaging service.

Amazon FBA seller

How to Become an Amazon FBA Seller 

Here's the part you've been waiting for. The step-by-step guide on how to become an Amazon FBA seller:

Step 1: Select a Niche 

FBA has different requirements and restrictions than non-FBA products. If you fail to comply, it will result in any of the following:

  • Return or dispose of your inventory upon its arrival at the fulfillment center.
  • Amazon will block your future shipments.
  • You will be charged for noncompliance or preparation.
  • Possible deactivation of your selling account.

You can prevent this by avoiding the following niche or categories:

  • Vehicle tires
  • Alcoholic beverages (including non-alcoholic beer)
  • Products with unauthorized marketing materials, such as pamphlets, price tags, or other non-Amazon stickers
  • Gift cards, gift certificates, and other stored-value instruments
  • Loose packaged batteries
  • Heat-sensitive inventory (during warmer months)
  • Products requiring AC, freezing, or refrigeration
  • Perishable or expired products
  • Items with price tags, marketing paraphernalia, or other non-Amazon stickers
  • Damaged or defective units
  • Products with labels not correctly registered with Amazon before shipment or did not match the registered product
  • Products illegally replicated, reproduced, or manufactured
  • Products that do not comply with any agreement between Amazon and the seller
  • Products that Amazon otherwise determines are unsuitable
  • Products that have not been prepared according to FBA packaging and prep requirements

Step 2: Find Products to Sell

Here’s how to find one:

  • Choose small, lightweight products that only need minimum handling and shipping costs since Amazon includes the size and weight in the calculation.
  • Source generic products so you can rebrand them easily.
  • The product doesn't need Amazon's approval before selling it to save yourself from complicated paperwork and time-consuming process.
  • You can sell the product all year round.
  • The product must not have a trademark or patent yet, so you can own the rights to sell it exclusively under your brand.
  • It has a high demand, low competition, and is marketable.

Step 3: Look for a Supplier or Manufacturer

The right supplier must have the following characteristics:

  • They can consistently manufacture a product.
  • They welcome third-party inspection to ensure the quality of the product.
  • They abide by the rules and regulations of Amazon and local authorities.
  • They are willing to communicate with you when needed.
  • The supplier is an ethical and socially-compliant company.
  • The supplier or manufacturer is okay with providing sample products for every reproduction to check for quality assurance. 

After you tick all the boxes, here are different ways to find a supplier:

  • Subscribe and read industry trade publications.
  • Visit trade shows.
  • Mingle with business owners.
  • Register in online wholesale directories like Worldwide Brands, SaleHoo, The Wholesaler, Price Master, Liquidation, Big Lots, The Wholesale Forums, and Tuesday Morning.
  • Join Facebook groups targeting suppliers of your chosen niche.
  • Visit online B2B wholesale websites such as DHgate, Amazon Business, Alibaba, Global Sources, and eWorldTrade.

Step 4: Establish Your Brand

A well-researched and developed brand is a valuable marketing weapon for your business. 

Brand Names

If your goal is to expand into other niches, think of a unique and memorable company name, which will be your seller name. You must also assign a brand name for each product you're offering. 

Brand Design

Create a brand logo and design for your company and products. You can outsource this task if you're not artistic or have zero knowledge about graphics design. Don’t use graphics or pictures from stock photo websites because you might encounter a seller with the same design as yours.

Step 5: Sign Up for an FBA Seller Account

Before you start selling, have the following first:

  • Tax information
  • Government ID
  • Active credit card
  • Business email address
  • Business phone number
  • Bank account number

Then choose the right Amazon seller plan: the Individual plan or the Professional plan. 

Step 6: Create Product Listings

The product title should be descriptive enough for shoppers to understand. Upload high-resolution product images shot from different angles to give your customers visual clarity. 

State the benefits of your product in bullets. Remember that you must pass the standards of your prospective buyers and Amazon's algorithm, the A10. Be thorough in performing search engine optimization to target the right keywords or search phrases. 

Step 7: Prepare Your Products for Packaging

Amazon is very meticulous when it comes to inventory preparation and packaging. They have rules on how you must prep up your products to ship them to Amazon's warehouses. Case-packed products must not exceed 50 lbs or exceed 25 inches in length on any side. For more information on Amazon FBA packaging, visit Amazon Seller Central.

Step 8: Ship Your Inventory

Time to create your first shipment! Follow the steps below:

Part 1: Select Products to Ship

  1. Register your seller account for FBA. 
  2. On your Seller Central account, go to Inventory > Manage Inventory.
  3. Select the products you want to ship.
  4. In the Actions drop-down menu, choose to Send/Replenish Inventory.
  5. Set your Ship From Address, where the inventory will come from. 
  6. Decide the Packing Type of your inventory, either individual products or case-packed products.
  7. Hit Continue to create a shipping plan.

Part 2: Shipment Creation Workflow

  1. Fill in the Unit per Case and Number of Cases fields per product on the Set Quantity page. Then click Continue.
  2. The next page is Prepare Products, where you choose who will prepare the inventory by selecting in the Who Preps pull-down list.
  3. On the Label Products page, set the number of labels you need in the # of labels to print columns. Then hit the Print labels for this page to start printing.
  4. You will be directed to the Review Shipments page to check the details of your shipment plan.
  5. If everything is correct and complete, you may now Approve the shipment plan. The page will change to View Shipments after you approve it.
  6. Moving on to the next page, the Prepare Shipment, you may now choose your final delivery method.
  7. Choose your preferred Shipping method and Shipping carrier under the Shipping service section of the Prepare Shipment page.
  8. Double-check the contact information before proceeding.
  9. Click Calculate to know how much you will be paying, and you may approve it by selecting the I agree to the terms and conditions.
  10. Click the Accept charges button to proceed to the last step.
  11. Select the Print box labels. This action will print the FBA shipping labels you will put on top of each box and pallet you ship.

Step 9: Launch Your Product

We've devised an easy-to-follow five-step guide to launch your product.

  1. Optimize your product detail page.
  2. Create a buzz with off-Amazon advertising, social media, and blog posts.
  3. Set up PPC campaigns.
  4. Gather organic reviews.
  5. Launch Your Product!
Amazon FBA trademark

5 Amazon FBA Mistakes You Must Avoid

Here are the mistakes to avoid as an Amazon FBA seller:

Dependent on FBA Alone

Always have a plan B. Plan B is to switch to the Fulfillment by Merchant (FBM) setup whenever needed. FBM is when you handle the order fulfillment operations by yourself.

Not Protecting Your Brand

Amazon is one of the most competitive marketplaces on Earth. Do everything to protect your brand and reputation. Enroll in Amazon Brand Registry and have your products trademarked. 

Running Out of Stock

You won't be penalized if you run out of stock. But your seller performance metrics and ranking will be affected. Amazon also automatically removes a listing that has zero inventory. Regularly check your stock levels on a weekly or bi-weekly basis. Replenish right away to keep selling and earning.

Not Understanding Amazon's Policies

Amazon rules and regulations are overwhelming to read. No wonder sellers skip this part. But failing to do so would put your selling privileges at risk. So read everything from front to back. Stick to the rules to avoid getting banned.

Selling on FBA Gets You Rich Quickly

Nope. Yes, you can earn money as an FBA seller, but it will not be an overnight success. Hard work and dedication are the keys to being a successful Amazon seller. There is no such thing as shortcuts and quick hacks. You need to roll up your sleeves and get to work. 

Wrapping Up!

The FBA service assures customers of free and quick shipping. At the same time, Amazon Prime allows you to offer your products to customers. Enroll in Amazon FBA today to start selling and grow your online shopping business in no time. 
If you want some help to jumpstart your Amazon FBA business, our experienced consultants in Seller Interactive are willing to help you. Call 1-800-820-3746 today.


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