Browse Definitions:
Definition

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is an e-commerce service in which third-party vendors store their products in Amazon’s fulfillment centers and the e-commerce giant picks, sorts, packs, ships, tracks and handles returns and refunds for these products. In addition to accounting for a huge portion of Amazon’s revenue, FBA enables Amazon to offer other vendors’ products alongside its own.

FBA gives smaller vendors access to Amazon’s web-to-warehouse picking and sorting system and other logistics services, freeing the vendor to focus more on other aspects of their business. Amazon charges merchants for storage space and a fee for orders it fulfills. Shipping costs and and 24/7 customer service are included in vendor fees.

How Fulfillment by Amazon (FBA) works

To sign up for FBA, merchants in the United States, Canada and Mexico need a Selling on Amazon account. Merchants can add products to the Amazon catalog one at a time, in bulk or by integrating their inventory management software with Amazon, using Amazon's application program interface (API). Listings on the Amazon website are shown with the Amazon Prime logo. There is no additional charge for Amazon Prime free two-day shipping, and there is free shipping on eligible orders. FBA can also be integrated into vendors’ websites so that customers can do their shopping through Amazon without leaving the third-party’s website.

Amazon advises merchants that use its e-commerce service to ensure their products are "e-commerce-ready" so they can be safely and securely transported to customers. Amazon makes polybags, boxes, stretch wrap, bubble pack and other shipping materials easily available to Selling on Amazon vendors. Some fees for Selling on Amazon and optional services may be applicable.

This was last updated in September 2017

Continue Reading About Fulfillment by Amazon (FBA)

Join the conversation

1 comment

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

How could using FBA help differentiate a small vendor from its online competitors?
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

  • principle of least privilege (POLP)

    The principle of least privilege (POLP), an important concept in computer security, is the practice of limiting access rights for...

  • identity management (ID management)

    Identity management (ID management) is the organizational process for identifying, authenticating and authorizing individuals or ...

  • zero-day (computer)

    A zero-day vulnerability, also known as a computer zero day, is a flaw in software, hardware or firmware that is unknown to the ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

SearchStorage

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close