What Is Amazon FBA And How Does It Work For eCommerce Sellers

If you’ve ever sold online, you know there’s a point where packing orders in your living room just doesn’t cut it anymore. Orders pile up, customers expect next-day delivery, and suddenly you’re buried in tracking numbers and packing tape instead of focusing on growth.

 

That’s usually when sellers discover Amazon FBA — and for many, it’s a complete game changer.

 

Fulfilment by Amazon (FBA) lets you send your stock straight to Amazon’s fulfilment centres, where they handle storage, shipping, customer service, and returns. It’s convenience at its best, helping countless small businesses scale without the usual fulfilment chaos.

 

But is it really that simple — or that profitable? More importantly, is Amazon FBA worth it in 2025?
Let’s break it down.

Table of Contents

How Amazon FBA Actually Works

Think of Amazon FBA as your outsourced warehouse and delivery network.
Once you’ve registered for the programme and created your listings, you ship your inventory to Amazon’s fulfilment centres. From there, Amazon scans, stores, and manages your stock, ready for dispatch the moment an order comes in.

 

When a customer hits “Buy Now,” Amazon takes over — picking, packing, and delivering the order directly to their doorstep. They even handle customer emails, refunds, and returns for you.

The idea is simple: you sell, Amazon fulfils.
And because your products are stored in Amazon’s network, they automatically become Prime-eligible — meaning millions of customers see your listing with that all-important “Prime” badge and free next-day delivery.

 

It’s easy to see the appeal. But there’s a reason experienced sellers call FBA both a lifesaver and a money pit.

Why So Many Sellers Choose FBA

Amazon FBA is a powerful tool when used right. According to RevenueGeeks (2024), over 82% of sellers use FBA, showing just how essential it’s become for eCommerce success.

Here’s why sellers love it:

1. You Instantly Gain Customer Trust

Shoppers trust Amazon — and that trust directly benefits sellers. According to Mintel’s 2024 Online Retailing Report, over 90% of UK online shoppers have purchased from Amazon in the past year, making it the UK’s most trusted and frequently used eCommerce platform.

 

When customers see “Fulfilled by Amazon,” they associate it with reliability, fast delivery, and secure service — instantly giving your brand credibility and a higher chance of conversion.

2. You Don’t Need to Build a Warehouse Operation

Instead of managing pickers, packers, and delivery contracts, Amazon does it all for you. For new brands, that removes a massive operational barrier.

3. You Can Go Global Overnight

Amazon FBA’s global network lets you sell to customers across Europe, North America, and beyond, without setting up local warehouses or worrying about customs documentation.

 

It’s like having an instant international logistics department — without the payroll.

The Other Side of FBA: The Costs and Compromises

The convenience of FBA comes at a price — and for many sellers, that price keeps rising.

Amazon frequently adjusts fulfilment and storage fees, especially during peak seasons or when inventory ages. These incremental increases can eat into margins faster than sellers anticipate.

 

You’ll be charged for:

  • Storage space, especially higher during Q4

  • Picking, packing, and dispatch

  • Customer returns

  • Long-term storage for slow-moving inventory

Costs are now more granular than ever, making it easy to lose track of true profit margins — particularly if you don’t monitor by SKU or product type.

To see exactly how these costs are calculated and how they impact margins, check out our in-depth guide: Amazon FBA Fees Explained

Is Amazon FBA Worth It in 2025?

This is the question every seller eventually asks: is Amazon FBA worth it?

The short answer is yes — but not for everyone.

If your products are high-margin, lightweight, and sell quickly, FBA is still one of the most efficient fulfilment systems available.
Research from Yaguara (2024) found that FBA sellers typically see 20–25% higher sales compared to those handling fulfilment themselves, largely because of the visibility and credibility that come with Prime.

However, FBA becomes less appealing for:

  • Bulky or low-margin products (where fees eat into profit)

     

  • Slower-selling items (which trigger long-term storage costs)

     

  • Brands that want full control over their packaging and branding

     

Another major challenge is inventory control. During busy seasons, Amazon limits how much stock you can send in. For many sellers, that means running out of inventory mid-sale — the worst possible scenario when trying to maintain ranking.

 

If you’ve hit those roadblocks, there are alternatives that still give you speed and control, such as Seller Fulfilled Prime. Check out our blog ‘ Tired of FBA Fees? Seller Fulfilled Prime Could be a Good Alternative.’

Where FBA Fits in a Broader Fulfilment Strategy

FBA is a tool — not a strategy. The best sellers don’t rely on it entirely.
Instead, they combine it with their own fulfilment setup or a trusted 3PL fulfilment centre.

 

Why? Because it gives them balance.

 

You can keep your fast-moving SKUs in FBA to benefit from Prime delivery, while your slower or bulkier stock sits in a cheaper external warehouse. That flexibility protects your margins while keeping your customers happy.

 

At PackPro Fulfilment, we see this hybrid model work incredibly well for growing brands.

How PackPro Helps Amazon Sellers

If you sell on Amazon but want more control — or lower storage costs — that’s exactly where we can help.

 

At PackPro, we work with Amazon sellers of all sizes to support every stage of fulfilment, from FBA prep to FBM shipping. Our team handles everything Amazon expects — perfectly labelled, packed, and compliant stock — while offering flexibility that FBA doesn’t.

 

Here’s what we offer for Amazon sellers:

 

FBA Preparation & Labelling
We prep and barcode your products according to Amazon’s FBA requirements, ensuring your stock is accepted first time without delays or rejections.

Storage & Overflow Management
Amazon’s Q4 storage fees are notoriously high. We store your overflow inventory and drip-feed it into FBA, saving you hundreds in unnecessary charges.

FBM & Seller Fulfilled Prime Support
If you want to fulfil some orders yourself (or through us) while maintaining Prime access, we can manage that hybrid setup for you.

B2B and D2C Fulfilment
We don’t just handle Amazon orders — we can also fulfil wholesale and Shopify sales under one roof, making your operation more efficient.

Learn more about how our Amazon Fulfilment Services can fit into your business.

The Bottom Line

So, is Amazon FBA worth it? For many sellers, yes — but only when used strategically.

 

FBA can supercharge your sales, build customer trust, and simplify logistics overnight. But it’s not a set-and-forget solution. You still need visibility over your costs, flexibility in your fulfilment, and a backup when Amazon inevitably changes the rules.

 

The smartest eCommerce brands in 2025 aren’t choosing between fulfilment models — they’re building a system that can adapt.


That’s what we do every day at PackPro Fulfilment: helping sellers build fulfilment setups that grow with them, not against them.

FAQs - Amazon FBA

Amazon FBA stands for Fulfilment by Amazon. It’s a service where sellers send their products to Amazon’s fulfilment centres, and Amazon takes care of storage, packing, shipping, and even customer service. In short, you sell — Amazon fulfils.

Once you’re registered, you ship your inventory to an Amazon fulfilment centre. When someone places an order, Amazon picks, packs, and ships the item directly to the customer. They also handle any returns and customer queries on your behalf.

It depends on your product type and margins. For fast-moving, high-margin items, FBA can increase sales and visibility thanks to Prime eligibility. However, for bulkier or slower-moving stock, rising storage and fulfilment fees can quickly cut into profits. Many sellers now use a hybrid approach — combining FBA with an external 3PL like PackPro Fulfilment to keep costs under control.

The biggest perks are trust and convenience. Your listings become Prime-eligible, which boosts conversions, and Amazon handles logistics so you don’t need your own warehouse or delivery team. It’s ideal for scaling quickly without adding overhead.

FBA fees can be high and unpredictable — especially during Q4 when storage rates surge. You also lose control over packaging and branding, and Amazon may limit your inventory during busy seasons. Sellers often balance these issues by storing some stock externally with a 3PL.

With FBA (Fulfilled by Amazon), Amazon handles everything. With FBM (Fulfilled by Merchant), you store and ship products yourself or through a fulfilment partner. We’ve broken down the pros and cons of each model in our guide: FBA vs FBM: Which Fulfilment Model Is Best for Your Business.

At PackPro, we support Amazon sellers with FBA prep, labelling, storage, and overflow management. We also handle Seller Fulfilled Prime (SFP) and FBM orders, giving you flexibility outside of Amazon’s system. It’s the easiest way to stay compliant, reduce storage costs, and protect your business when Amazon changes its rules.

If you want more control and lower fees, Seller Fulfilled Prime (SFP) and third-party logistics (3PL) fulfilment are strong alternatives. You can read more about this hybrid model in our blog: Tired of FBA Fees? Seller Fulfilled Prime Might Be the Answer.

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Switch to PackPro & Save!

Customers who switch to us save an average of 30% on their fulfilment costs.

UK’s No.1 choice for eCommerce Order Fulfilment. Smart & Affordable Fulfilment solutions for growing brands in UK, USA and EU. 3PL that works for you!

Switch to PackPro & Save!

Customers who switch to us save an average of 30% on their fulfilment costs.

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