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FAQ · topic 06 of 10

FBA, Fulfillment & Logistics

10 questions sellers ask about this topic, with the answers our team gives clients.

Questions and answers

10 questions

What are FBA fees based on?

FBA fulfillment fees are based on product size and weight tier, while storage fees are based on the volume your inventory occupies in Amazon's warehouses and the time of year (storage fees rise during Q4). Referral fees are separate and based on category and sale price.

What is long-term storage fee and how do I avoid it?

Amazon charges an additional fee on inventory that sits in fulfillment centers beyond a set period (typically 271+ days), on top of standard storage fees. Avoiding it means monitoring inventory age reports and running removal or liquidation before units age into the long-term tier.

How do I set up an FBA shipment plan correctly?

A correct shipment plan matches accurate product dimensions and weights, follows Amazon's prep and labeling requirements, and accounts for which fulfillment centers Amazon assigns for that shipment — errors in any of these are the most common cause of receiving delays or unexpected fees.

What happens if Amazon loses or damages my inventory?

Amazon's FBA reimbursement policy covers units lost or damaged in their fulfillment network, but reimbursement isn't automatic in every case — discrepancies need to be identified (usually through inventory reconciliation reports) and a reimbursement case filed within Amazon's claim window.

What is the difference between FBA and Seller Fulfilled Prime?

FBA means Amazon stores and ships your inventory. Seller Fulfilled Prime lets you keep inventory in your own warehouse while still offering Prime shipping speeds, but requires meeting strict on-time delivery and cancellation rate standards to remain enrolled.

Can I use my own 3PL instead of Amazon FBA?

Yes — this is standard FBM (Fulfilled by Merchant) using a third-party logistics provider instead of your own warehouse. You lose FBA's Prime badge unless you also qualify for Seller Fulfilled Prime, but you keep more control over storage costs and packaging.

What is GTIN/UPC exemption and when do I need it?

Most Amazon listings require a UPC or GTIN to create a new product. Exemption lets brand-owners list without one when a product doesn't have (or qualify for) a standard barcode — usually granted through Brand Registry with proof of brand ownership.

How does Amazon decide which fulfillment center gets my inventory?

Amazon's algorithm distributes inventory across its network based on projected regional demand, existing stock levels, and warehouse capacity — sellers generally can't choose specific fulfillment centers for standard shipments.

What is inventory performance index (IPI) and why does it matter?

IPI scores how efficiently you're managing FBA inventory — factoring in excess stock, sell-through rate, and stranded inventory. A low IPI score can result in Amazon capping how much inventory you're allowed to store in their warehouses.

Should I bundle products in FBA?

Bundling can differentiate a listing and improve margins, but Amazon has specific rules about what qualifies as a compliant bundle (a clear primary item, compliant labeling) — an incorrectly configured bundle can get suppressed or flagged as a listing violation.

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