Fulfilment by Amazon

Amazon FBA: Fulfilment services for your ecommerce business

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What is Fulfilment by Amazon (FBA)?

Fulfilment by Amazon (FBA) is a program that lets you outsource order fulfilment to Amazon and offer customers free, two-day shipping through Prime. By enrolling in FBA, you can send your products into Amazon’s global network of fulfilment centers, and we’ll pick, pack, and ship orders, as well as handle customer service and returns. FBA is part of a fully automated set of services we call Supply Chain by Amazon.
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Our world-class customer service team saves you time by managing customer enquiries, refunds and returns for FBA items bought on the Amazon website.
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Use FBA to deliver orders with the speed and reliability customers love. That can help you increase sales and repeat purchases.
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Our network includes hundreds of fulfilment centers worldwide and can help you reach customers around the globe.
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Instead of spending time processing orders, handling customer inquiries, and managing returns, use FBA to focus on developing products and delighting customers.

Free shipping, storage, removals and returns

Try Fulfilment by Amazon now and get free shipping to an Amazon fulfilment center, free storage, free removals and free return processing with the FBA New Selection program.*
*conditions apply
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“Growth can be a burden if you’re not set up for it - that’s why it’s really important to reach out to others like Fulfilment by Amazon.”

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Yulee Harris
CEO of Hunter & Trove
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“Our business with amazon has always been consistent and it’s always grown over time... This has helped us place strategic warehouses across North America to create more efficiencies in our business.”

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Divyan Selvadurai
VP of eCommerce

Get started with $70,000 in incentives

Ready to sell with Amazon? As a new seller, you can take advantage of a series of incentives.
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10% back on your first $70,000 in branded sales, then 5% back through your first year until you reach $1,350,000 CDN
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$50 CDN credit to create Sponsored Products ads
10% back on branded sales, $50 CDN for sponsored ads
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Aim for fast, free shipping with Prime

Many Amazon customers look for products with the Prime badge because it represents fast, free shipping. Using FBA to ship your products is the easiest way to get the Prime badge for most offers.

How FBA works

Amazon FBA can help decrease fulfilment headaches as you scale your business.

Step 1

Set up FBA

Create your Amazon selling account, and log in to Seller Central to set up FBA. You can review FBA costs and get an estimate for each product you want to enroll in the program.

Step 2

Create product listings

Once you add products to the Amazon catalog, specify FBA inventory.

Step 3

Prepare products

Prepare the products for safe and secure transportation to a fulfilment center, according to Amazon packing guidelines and shipping and routing requirements.

Step 4

Ship products to Amazon

Create a shipping plan, print Amazon shipment ID labels, and send shipments to Amazon fulfilment centers. Learn more about sending inventory to Amazon.
Once Amazon receives products at the fulfilment center, the items are available for customers to buy. Visit Seller Central Help to learn about how to manage FBA orders.

You sell it, you ship it

Seller fulfilled

Man pulling packages on a trolley in an Amazon fulfillment center with a superimposed illustration of an inventory list

When to handle orders yourself

Fulfilling orders yourself might be right if your products aren’t ideal for FBA—for instance, hazardous goods (sign-in required) that don’t meet fulfilment centre requirements or seasonal products that would incur excessive storage fees. Also, you may not need FBA if you already have a logistics network in place.

In cases like these, fulfilment your owns orders allows you to:
  • Keep your inventory in stock
  • Use your own packaging or labels
  • Stay profitable on products with tighter margins
  • Offer products that are eligible for sale on Amazon, but ineligible for FBA

Amazon's drop shipping policy

Drop-shipping is when you enlist a third-party to fulfill orders on your behalf. Amazon has very specific policies around this practice. If it’s a method you intend to use, make sure to follow these requirements to avoid losing your selling privileges.

How much does FBA cost?

Costs for FBA depend on the products you sell and the exact services you use. Compare FBA to the cost of fulfilling customer orders yourself, then select the right fulfillment method for each product.

Fulfilment fees

Fee per unit includes picking and packing your orders, shipping and handling, customer service, and product returns. Fees are based on the weights and dimensions of your product.

Products priced under CAD $14 receive rates CAD $0.80 less than standard FBA rates.

Size tier 1

Shipping weight 2

Fulfilment fee

Envelope fulfilment fee
per unit
First 100 g
100+ to 200 g
200+ to 300g
300+ to 400g
400+ to 500g
CAD $4.46
CAD $4.71
CAD $5.01
CAD $5.28
CAD $5.62
Standard fulfilment fee
per unit
First 100 g
100+ to 200 g
200+ to 300 g
300+ to 400 g
400+ to 500 g
500+ to 600 g
600+ to 700 g
700+ to 800 g
800+ to 900 g
900+ to 1,000 g
1,000+ to 1,100 g
1,100+ to 1,200 g
1,200+ to 1,300 g
1,300+ to 1,400 g
1,400+ to 1,500 g
1,500+ to 9,000 g
CAD $5.92
CAD $6.12
CAD $6.36
CAD $6.73
CAD $7.23
CAD $7.40
CAD $7.71
CAD $7.95
CAD $8.25
CAD $8.49
CAD $8.58
CAD $8.84
CAD $9.04
CAD $9.29
CAD $9.60
CAD $10.32+ CAD $0.09/100g above first 1500g
Small oversize fulfilment fee per unit
First 500 g
Each additional 500 g
CAD $15.43
CAD $0.46
Medium oversize fulfilment fee per unit
First 500 g
Each additional 500 g
CAD $37.78
CAD $0.52
Large oversize fulfilment fee per unit
First 500 g
Each additional 500 g
CAD $82.20
CAD $0.58
Special oversize fulfilment fee per unit
First 500 g
Each additional 500 g
CAD $150.78
CAD $0.58
1 For more information on product sizes, refer to Product size tiers.

2 Shipping weight is the greater of the product’s actual weight and its dimensional weight.

FBA storage fees *

Inventory storage fees are charged monthly based on the daily average volume (measured in cubic metres) for the space your inventory occupies in Amazon fulfilment centres. The volume measurement is based on unit size when properly packaged and ready to ship.

Month

Standard size1

Oversize

January - September
CAD $40 per cubic metre
CAD $28 per cubic metre
October - December
CAD $77 per cubic metre
CAD $49 per cubic metre
1. Includes standard-size and envelope, as defined in Product size tiers.
* Storage fees are based on the daily average volume (measured in cubic metres) for the space your inventory occupies in Amazon fulfilment centres.
Fees are based on the daily average volume (in cubic metres) your inventory occupies in Amazon fulfilment centres.

Additional fees apply for aged inventory (over 180 days), and high storage utilization.
Revenue Calculator

Estimate your Amazon Revenue

Provide your product details and fulfilment costs and see real-time cost comparisons between different fulfilment methods.
Illustration of the Amazon revenue calculator
When you fulfill orders yourself, Amazon charges shipping rates based on the product category and shipping service selected by the customer, and then passes the amount on to you in the form of a shipping credit.
Sellers with the Professional plan set their own shipping rates (except for books, music, video, and DVD products). When a customer buys your product, you receive a credit from Amazon that matches the shipping rate. Keep in mind that the referral fee is calculated from the total sale price, including the item price, shipping cost, and any gift-wrapping charges.
Sellers with the Individual plan use Amazon's set shipping rates for all products. Individual Sellers have to ship orders at the set rates even if the shipping credit is less than the total shipping costs, so it's important to price in a way that makes sure you'll earn a profit.

FBA storage and fulfilment fees

Inventory storage fees

Charged for all items stored in an Amazon fulfilment centre, and based on your daily average volume of inventory measured in cubic feet. See how to determine the product size tier for your items.

Long-term storage fees

Assessed monthly for all items stored in a fulfilment centre for more than 365 days. Maintaining sound inventory health can help you avoid long-term storage fees.

Fulfilment fees

Charged per unit for picking and packing your orders, shipping and handling, customer service, and product returns. Use the FBA revenue calculator to estimate fees and see how to preview your fees.

Unplanned services fees

Charged when inventory arrives at a fulfilment centre without proper preparation or labeling, making unplanned services required.

Removal order fees

You can have Amazon return or dispose of your inventory in a fulfilment centre for a per-item fee.

Returns processing fees

Charged on orders when Amazon provides a customer with free return shipping.

FBA inventory management

Use the tools in your seller account to list products, create shipping plans, send in shipments, track and monitor your shipments, and remove inventory from Amazon fulfillment centers.

Inventory Performance Dashboard

Your Inventory Performance Dashboard displays your Inventory Performance Index (IPI) score, along with key influencing factors. Be sure to check your IPI score regularly.

Manage excess inventory

Optimize your inventory levels by knowing when to mark down or remove your products. Monitor detailed information about storage costs, opportunities to drive sales, and suggestions to help improve returns on your inventory.

Track inventory age

Improve sell-through rates and avoid additional costs for aged inventory. Use Inventory Age tools to understand how much inventory you’re holding, and see how long it’s been in fulfillment centers.

Fix stranded inventory

Keep your listings active by including necessary pricing and condition information and resolving errors. If your inventory is in fulfillment centers without an associated active listing, it’s not available for purchase.

Restock inventory

Maintaining your FBA inventory at the right level is key to offering fast delivery to Prime customers. Amazon’s free tools on Seller Central can help you:
  • Get more one day and same day orders
  • Reduce out-of-stocks
  • Protect your sales rank
  • Minimize excess inventory
The tools offer recommendations based on your sales history, demand forecast and seasonality, and your inputs to help you determine how much inventory to send and when to send it. They are free to use, and directly integrated into Seller Central’s shipment creation workflow.

Frequently Asked Questions

What is Amazon FBA?
Fulfilment by Amazon (FBA) is a program that lets you to outsource order fulfillment to Amazon. This ecommerce fulfilment option is part of a fully automated set services we call Supply Chain by Amazon. With FBA, Amazon stores, picks, packs, ships, and delivers the products to customers.
How does Amazon FBA work?
You can enroll products in FBA and ship inventory to Amazon fulfilment centers for storage. When products sell, Amazon personnel can pick, package, and ship the orders to customers for you. Amazon fulfilment specialists can also process returns and exchanges, in addition to handling customer service. You can also track deliveries and sales via the Seller Central dashboard.
How to sell using Amazon FBA?
You can get started in three steps:
  • Sign up for a selling plan
  • List products
  • Prep and ship inventory to Amazon
Do I need a Professional selling plan to use FBA?
You can use FBA with either an Individual or a Professional selling plan. However, FBA might be a more cost-effective choice if you sell 40 items or more per month with a Professional plan.

To determine whether FBA is right for you, calculate your margins by taking storage and fulfilment costs into account. You might also want to consider upgrading to a Professional selling plan if you’d like to use advanced features like Sponsored Brands product listing ads and brand analytics. Learn more in this guide to selling on Amazon.
How much does FBA cost per item?
Costs vary per item and include fulfilment and storage. Use our Revenue Calculator to compare estimated costs for FBA and your own fulfilment method.
What is an FBA seller?
An FBA seller is an ecommerce business that sells in Amazon’s store and outsources inventory management to Amazon through the FBA program. The seller sends products to Amazon warehouses for order fulfilment. Amazon stores the inventory until a customer places an order. Then Amazon picks, packs, and ships the order.
How can I become an Amazon FBA seller?
If you’re already selling on Amazon, you can enroll products in FBA through Seller Central. Choose to register as little as a single product, or outsource your entire inventory to FBA. Then, package and ship inventory to Amazon fulfilment centers, and we can take care of the rest.

If you’re new to Amazon, sign up for a selling plan and create product listings. Then you can send inventory to Amazon fulfilment centers.
What to sell with Amazon FBA?
Generally speaking, most products for sale in Amazon’s store are eligible for FBA. You can sell virtually anything—from teas to quirky T-shirts or surfboards. Some products require prior approval before you can sell them. In addition, certain products are either not eligible for FBA or must meet specific requirements before qualifying for FBA.
What is "fulfillment"?
Fulfilment is the process of storing, packing, and shipping orders, as well as handling returns and exchanges. Some businesses manage fulfilment in-house, while others use a service like Fulfilment by Amazon or some combination of in-house and third-party options. Effective, reliable fulfilment delights customers.

Not a seller yet?

Consider all the benefits of Selling on Amazon, then choose a selling plan and find out how selling on Amazon works.
$29.99 a month CAD + selling fees
Please note: All new Selling on Amazon subscriptions include access to sell on Amazon.com, Amazon.ca, and Amazon.com.mx. Fees, available product categories, and selling requirements may vary between the three marketplaces.
*A Professional selling account is CAD $29.99 a + selling fees. Learn more
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