Asset 20 8 2
Does AI recommend your business? Run the free check →

Join 15,000 business owners, marketers and entrepreneurs. The Sunday newsletter you'll be annoyed only arrives once a week.

Article

Amazon FBA Explained: Every Cost Line and the New Seller Credits

Amazon FBA, or Fulfillment by Amazon, is where you send your stock to Amazon's fulfilment centres and Amazon picks, packs and ships your orders, handles customer service and returns, and offers customers free two-day Prime shipping. You can use it on either the Individual or the Professional selling plan, and what you pay depends on your products and the services you use.

Here's the catch. There's no single FBA fee. Your fulfilment cost is set by each product's price, weight and dimensions, so the sensible first step is Amazon's Revenue Calculator, not a rule of thumb from a forum. And the two costs beginners miss are the monthly charge on stock that's been stored for more than 181 days, and restock limits, which cap how much you can send in and can push your storage costs up if you go over.

Everything on this page comes from Amazon's US seller pages as of October 2026, so these are US prices and rules. UK, Canadian and Australian sellers will see local versions.

How FBA works in four steps

  1. Register for FBA in Seller Central: gear icon, Account info, Manage, Register for FBA.
  2. List your products and assign them to FBA.
  3. Send your shipment in with the Send to Amazon workflow.
  4. Amazon takes over storage, picking, packing, shipping, customer service and returns.

FBA now sits inside Amazon Supply Chain Services, so you'll see that name around Seller Central too. Most products are eligible, but some need approval first, and some aren't eligible or come with extra requirements, so check Amazon's FBA product restrictions before you ship anything.

The six FBA cost lines and what triggers each one

FBA costWhat triggers it
FulfilmentEach order: picking, packing, shipping, customer service and returns, based on price, weight and dimensions
StorageMonthly, by the space your stock takes, on daily average volume in cubic feet
Aged inventoryItems stored for more than 181 days, charged monthly
Returns processingWhen Amazon gives the customer free return shipping
Removal, disposal and liquidationPer item, when you ask Amazon to take stock out
Inbound placementThe FBA inbound placement service for your shipments

Storage is the one to watch month to month. Slow sellers cost you twice: they take up space every month, and once they pass 181 days they pick up the aged inventory charge on top.

To see real numbers, use the Revenue Calculator. You search Amazon's catalog for a product, or define one by dimensions, weight, category, price and shipping charges, and it compares FBA with fulfilling orders yourself. Inside Seller Central, Reports, Fulfillment, Fee Preview shows estimated fees on your own listings.

New seller credits, as of October 2026

Amazon's FBA page lists these credits for new Professional sellers as of October 2026.

CreditWhat Amazon offers
Partnered Carrier shipments$100 off shipments into the fulfilment network through the Amazon Partnered Carrier program
Amazon Global LogisticsA $200 credit toward fulfilment costs
Inbound placementA $400 credit for inbound placement costs
FBA New SelectionFree monthly storage and customer returns, plus referral discounts and fee waivers on eligible new-to-FBA products

The timing on FBA New Selection matters. You're enrolled automatically, but only if you create a shipment within 90 days of listing your first buyable product. Leave your first shipment too late and you lose the free storage.

Restock limits, bulk storage and the enrolment tool

Restock limits decide how much stock you can send in, and going over your limit may raise your storage costs. If you hold a lot of stock, Amazon Warehousing and Distribution (AWD) is Amazon's bulk storage option: pay-as-you-go pricing, no seasonal surcharges, FBA inbound placement included, and automatic replenishment from AWD into FBA.

There's also the FBA Enrollment Opportunities tool, which uses machine learning to flag products in your catalog that could benefit from FBA, with an estimated sales lift for each one. It's a quick way to see which of your existing listings Amazon thinks are worth moving.

When FBA makes sense, by Amazon's own yardstick

Amazon says FBA might be more cost-effective if you sell 40 items or more a month on a Professional plan. It also lays out the alternatives: dropshipping to test a product, a third-party logistics provider (3PL) once you pass about 10 orders a day, and keeping it in-house for specialty orders.

Work with me

Want AI doing the heavy lifting in your marketing?

I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.

If you're weighing it up against shipping orders yourself, I've put the two side by side in FBA vs FBM.

My verdict on Amazon FBA

I'd use FBA once a product is selling steadily and you're moving 40 or more a month, because that's the point where Amazon says it might be more cost-effective. Before you send a single box, run the product through the Revenue Calculator, ship inside the 90-day window so FBA New Selection kicks in, and keep an eye on anything that's getting close to 181 days in storage. If you're starting from zero, here's how to start an Amazon FBA business step by step.

FBA handles the boxes. Getting your products found, in search and in AI answers, is where I help. I run AI training and workshops for teams, and help businesses with AI enablement, AI automation and GEO, which is about getting your business seen and cited in AI answers. Most of that work is with SaaS marketing teams, telecom companies and small businesses. Here's how we can work together.

Frequently asked questions

What is Amazon FBA?

Fulfillment by Amazon. You send stock to Amazon's fulfilment centres, and Amazon picks, packs and ships orders, handles customer service and returns, and offers customers free two-day Prime shipping.

Do I need a Professional plan for FBA?

No. FBA works with either the Individual or the Professional selling plan. The new seller credits are for Professional sellers.

How do FBA fees work?

Fulfilment is charged per order based on price, weight and dimensions, and storage is charged monthly by the space your stock takes up. Aged inventory, returns processing, removals and inbound placement can add more.

What is FBA New Selection?

A program for new Professional sellers with free monthly storage, referral discounts and fee waivers on eligible new-to-FBA products. You're enrolled automatically if you create a shipment within 90 days of listing your first buyable product.

What is aged inventory on Amazon?

Stock that's been stored in Amazon's fulfilment centres for more than 181 days. It's charged monthly on top of normal storage.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
Your buyers are asking AI who to use. Does it say you?

See for free whether ChatGPT, Claude, Perplexity, Gemini and Google name you, and get the plan to become the answer.

Check my AI visibility →
Sundays only

Get the Sunday newsletter.

One email a week. AI experiments, marketing tactics, and the workflows Lilach is building right now in her own business.

Subscribe free

Let’s get your marketing running on AI.

Book a free 30-minute call

We figure out what you need, where AI fits in, and what working together would look like.

Book the call →

Or take the 30-second calculator

You’ll see the hours and the money quietly leaking out of your week, and the three workflows worth building first.

Take the calculator →

Or grab the free AI resource library

Prompt packs, templates, checklists, and swipe files. The exact tools I build for paying clients. Yours, free.

Get the library →
Keep reading

More from the blog.