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Amazon fulfillment, from the factory to the customer's door

This Amazon FBA guide section covers how orders reach customers: Fulfillment by Amazon, shipping orders yourself, dropshipping, prep, freight from overseas and selling abroad from US stock. Each guide works from Amazon's own policies and fee pages, including the changes that took effect in 2026.

Rules last verified against Amazon's Seller Central help and program pages: September 2026

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How Amazon fulfillment works

The Buy Box tier of the Shelfcrest crest: parcels on the shelf carrying yellow tags as they pass
Tier 04 of 05 · this section

Every Amazon order has to be stored, picked, packed, shipped and supported after delivery. The fulfillment method decides who does each of those jobs. With Fulfillment by Amazon, Amazon does all of them from its fulfillment centers and the product gets the Prime badge. With Fulfilled by Merchant, you do them yourself.

With dropshipping, a supplier ships the order, but you remain the seller of record and own the customer service.

Amazon lets you choose per product and combine methods, and its own guidance is that many sellers use both FBA and FBM. The choice shapes the costs you pay: FBA fulfillment and storage fees on one side; labels, packing, space and labor on the other.

For a small business selling a few products, that can mean FBA for everything; for sellers with heavy items or their own warehouse, a mix is common, and sales, storage costs and customer expectations decide the split product by product.

It also decides which rules you answer to. FBA shipments must meet Amazon's prep, label and receiving rules at the dock. Seller fulfilled orders carry Amazon's performance targets, such as an order defect rate under 1% and a late shipment rate under 4%. Dropshipped orders add the Drop Shipping Policy: only your name on what the customer receives.

For most FBA sellers the work sits at both ends of the journey. Before the shipment: choosing products that fit FBA's size tiers and product rules, prepping and labeling every unit, and getting cartons from the factory to Amazon's fulfillment network under its box and appointment rules.

After it comes inventory management: keeping enough stock to avoid stockouts and low-inventory fees without paying storage and aged inventory surcharges on units that sit in Amazon's warehouses.

In between, Amazon handles picking, packing and shipping, customer service and returns. That is what the FBA fees pay for, and why the cost comparison with shipping orders yourself has to include your own time, space and shipping costs, not just Amazon's fee table.

That is the thread through every guide in this section. Good fulfillment on Amazon means the right method for each product, inventory that arrives the way Amazon requires, and delivery promises you can keep.

Amazon FBA guide: the fulfillment methods compared

Amazon's fulfillment methods from most hands-off to most hands-on: FBA, Seller Fulfilled Prime, FBM, and dropshipping through a supplier. 01 FBA Amazon ships Prime badge 02 Seller Fulfilled Prime you ship Prime badge, earned 03 FBM you ship no badge 04 Dropshipping supplier ships you are seller of record
Who ships, and whether the Prime badge comes with it
MethodWho stores and shipsPrime badgeMain rules
Fulfillment by AmazonAmazonYesPrep, labels and receiving rules; FBA fees
Seller Fulfilled PrimeYouYes, after a 30 day trial93.5% on-time delivery, 99% valid tracking
Fulfilled by MerchantYouNoOrder defect under 1%, late shipment under 4%
DropshippingYour supplier, blindOnly if the supplier qualifiesDrop Shipping Policy: you are seller of record
Remote Fulfillment with FBAAmazon, from US stockYes, in Canada, Mexico, BrazilRemote fees; customer pays duties

Amazon recommends starting with small, lightweight products with high turnover and good margins, whatever the method.

Multi-Channel Fulfillment uses your FBA stock for orders from other channels, and Amazon Warehousing and Distribution stores bulk stock and replenishes FBA. The details above were read on the date at the top of this page.

What changed in 2026: prep, fees and barcodes

FBA changes in 2026: Amazon ended US prep and labeling on January 1, raised fees on January 15, ended commingling on March 31, and added a 3.5% fuel and logistics surcharge on April 17. January 1 January 15 March 31 April 17 no more Amazon prep or labels fees up $0.08 on average commingling ends 3.5% fuel surcharge
Four changes that older FBA guides still miss

Amazon's FBA Prep Service page says that from January 1, 2026 it no longer preps or labels FBA inventory in the US, and that unprepped units in later shipments are not eligible for reimbursement if damaged or untraceable. Its 2026 fee summary put the average FBA fee increase at $0.08 per unit from January 15, with no new fee types.

Amazon then announced the end of commingling from March 31, 2026, changing who must use Amazon barcode labels, and a 3.5% fuel and logistics surcharge on FBA fulfillment fees from April 17, 2026. Holiday peak fees run from October 15, 2026 to January 14, 2027.

For seller fulfilled orders, Amazon's Order Performance policy now also requires, from June 29, 2026, handling times that match how fast you actually ship. Guides that tell FBA sellers Amazon will label their products, or that quote last year's fee tables, describe a program that has moved on.

The one line of math every fulfillment choice answers to

cost per order = fees + shipping + packing + storage share

Compare it per product for FBA and FBM, then weigh what the table leaves out: the Prime badge's effect on conversion, and your own time. Amazon's Revenue Calculator does the first part for real products.

The order to set up fulfillment

The order to set up Amazon fulfillment: choose the method per product, arrange prep and freight, send inventory with Send to Amazon, then manage stock and metrics. Choose Prep Freight Send Manage method per product labels, bags, boxes factory to Amazon Send to Amazon stock and metrics
Most fulfillment problems start before the shipment

  1. Choose the method per product

    FBA for small, steady sellers; FBM for heavy, slow or custom items; dropshipping to test demand.

  2. Check eligibility

    FBA product restrictions, dangerous goods, and approval for gated categories.

  3. Arrange prep and labels

    Yourself, your factory or a prep provider; Amazon no longer does it in the US.

  4. Plan the freight

    A forwarder or Amazon Global Logistics, with an importer of record and Amazon's box rules.

  5. Send with Send to Amazon

    Choose a placement option, print box labels, book the delivery.

  6. Manage stock

    About two months of inventory in FBA, restock limits and aged inventory in view.

  7. Watch the metrics

    Seller fulfilled targets for FBM and dropshipping; receiving and reimbursements for FBA.

How to tell whether fulfillment is working

Fulfillment works when orders arrive on time and the cost per order leaves a margin. Six numbers, checked monthly, show whether it does:

The Buy Box tier of the crest: parcels on the shelf carrying yellow tags as they pass
NumberWhere it isWhat a change means
Fulfillment cost per orderFee Preview, Payments, your own costsWhether the method still fits the product
Order defect rateAccount HealthSeller fulfilled service quality; keep under 1%
Late shipment and on-time deliveryAccount HealthWhether delivery promises are kept
Inventory in stockFBA Inventory, FBA DashboardStockouts lose sales and bring low-inventory fees
Aged inventoryInventory reportsSlow stock that surcharges will soon hit
Received vs shipped unitsShipment reconciliationLosses to claim as reimbursements

Amazon recommends keeping about two months of inventory in FBA. For seller fulfilled orders, Amazon reviews order defects over 60 days, late shipments over 10 and 30 days, and cancellations over 7 days.

FBA operations guides

Start here

Fulfillment methods

Getting stock to Amazon

Selling abroad and other programs

Sources first, then the example

  • Rules come from Amazon. Every limit, requirement and prohibited term is taken from Seller Central help and linked, with the date it was last read.
  • Examples are marked. Worked examples use illustrative products and say so. No client data appears in a guide.
  • Dated, and revisited. Amazon changes listing rules and fees. Each guide shows when it was last verified, and fee and policy pages are reviewed at least once a year.
  • Corrections are public. If a guide is found to be wrong, it is fixed and the change is noted at the bottom of the page.

Amazon FBA and fulfillment FAQ

The audit tier of the crest: a steel shelf with kraft parcels being scanned along its lanes
  • What is Amazon FBA?

    Fulfillment by Amazon: you send inventory to Amazon's fulfillment centers, and Amazon stores it, ships orders with Prime delivery, and handles customer service and returns.

  • What is the difference between FBA and FBM?

    With FBA, Amazon stores and ships your orders. With FBM, you store and ship them yourself and handle customer service. Many sellers use both, per product.

  • Does Amazon still prep and label FBA inventory?

    Not in the US. Amazon ended its prep and item labeling services on January 1, 2026; products must arrive prepped and labeled.

  • Is dropshipping allowed on Amazon?

    Yes, if you are the seller of record: only your name on packing slips, invoices and packaging, and you handle returns.

  • What did FBA fees do in 2026?

    Amazon raised FBA fees by an average of $0.08 per unit on January 15, 2026, and added a 3.5% fuel and logistics surcharge on fulfillment fees from April 17, 2026.

  • Can I sell in Canada and Mexico from US FBA stock?

    Yes, through Remote Fulfillment with FBA, formerly called NARF, which also covers Brazil. Customers pay the import duties.

  • Do I need a freight forwarder for FBA?

    If you import from overseas, a forwarder or Amazon Global Logistics moves the goods. Either way, you or your appointee must act as importer of record.

  • What performance targets apply to seller fulfilled orders?

    Amazon's Order Performance policy asks for an order defect rate under 1%, cancellation rate under 2.5%, late shipment rate under 4% and valid tracking over 95%.

  • How much inventory should I keep in FBA?

    Amazon recommends about two months of inventory, and a small first batch for a new product.

  • Which products should not use FBA?

    Amazon's FBA guide names alcoholic beverages and tires as ineligible and says dangerous goods typically cannot use FBA; heavy, slow or custom items often suit FBM.

Sources