What is Amazon FBA? A Beginner’s Guide to Launching Your E-Commerce Business

Did you know that 63% of Amazon’s total sales come from third-party sellers, many of whom use FBA? If you’re curious about launching a hands-off e-commerce business, Amazon FBA might be your golden ticket. In this guide, you’ll learn what Amazon FBA is, how it compares to other models like FBM (Fulfillment by Merchant), and actionable steps to get started—even with zero experience.

What is Amazon FBA?

Fulfillment by Amazon (FBA) is a service where Amazon handles storage, packing, shipping, and customer service for third-party sellers. Here’s how it works:

• You send products to Amazon’s fulfillment centers.
• Amazon stores your inventory in their warehouses.
• When a customer orders your product, Amazon packs and ships it.
• They also manage returns and customer inquiries.

Analogy: Think of Amazon as your warehouse partner—you source products, they handle the logistics.

How Amazon FBA Works: A Step-by-Step Breakdown

1. Product Research: Use tools like Helium 10 or Jungle Scout to find profitable niches.
2. Supplier Sourcing: Connect with manufacturers (e.g., Alibaba) for bulk orders.
3. Shipping to Amazon: Label products and send inventory to Amazon’s fulfillment centers.
4. Listing Optimization: Craft SEO-friendly titles, bullet points, and descriptions.
5. Amazon Handles the Rest: Storage, shipping, returns, and customer inquiries.

Example: Jane, a part-time seller, earns $10k/month by selling eco-friendly yoga mats through FBA—all while working her 9-to-5 job.

Amazon FBA vs. FBM: Which is Better?

Ready for the next step? Read our guide on Pros and Cons of Amazon FBA.

FAQs About Amazon FBA