Amazon FBA works on a simple division of labour: you own the product and manage the business strategy; Amazon handles everything physical that happens between the customer clicking "Buy" and the parcel arriving at their door. Here is the process from start to finish.
Step 1 — Open an Amazon Seller account
You need an Amazon Professional Seller account to use FBA effectively. The Professional plan costs £25 per month plus VAT and removes the per-item listing fee that Individual accounts pay. For FBA sellers doing more than a handful of sales per month, Professional is the right tier from day one.
Step 2 — Research and source a product
Before buying any stock, calculate your unit economics. You need to know your cost of goods, the FBA fulfilment fee for your product's size tier, the referral fee for your category, and an estimate of any advertising spend. Your target is a net margin of at least 20%.
Step 3 — Create your product listing
In Amazon Seller Central, you create a listing (or match to an existing one if the product already exists on Amazon). A good listing has a clear title, keyword-rich bullet points, quality images, and a competitive price.
Step 4 — Create a shipment and send stock to Amazon
You create a Shipment Plan in Seller Central. Amazon assigns your inventory to one or more UK fulfilment centres. You apply FNSKU barcodes to each unit, box up your stock according to Amazon's packaging requirements (box dimensions, weight limits, no protruding items), and ship the boxes to the addresses Amazon provides.
Step 5 — Amazon receives your inventory
When your boxes arrive, Amazon scans them in and counts each unit. This typically takes 1–5 business days. Once checked in, your units show as "Active" inventory and are immediately available for purchase on Amazon.co.uk.
Step 6 — Customer orders; Amazon fulfils
When a shopper orders your product, Amazon picks it from their warehouse shelves, packs it, and dispatches it — usually the same day for orders placed before the daily fulfilment cutoff. Prime-eligible FBA listings qualify for next-day or two-day delivery for Prime members, which significantly boosts conversion rates.
Step 7 — Returns and customer service
If a customer wants to return an item, Amazon manages the return process entirely. Returned units are assessed: sellable items go back to your active inventory; damaged items are marked as unsellable (and may qualify for reimbursement if the damage was Amazon's fault). Amazon's customer service team handles buyer contacts on FBA orders.
Step 8 — You get paid
Amazon disburses your balance every 14 days. Your payout is the total sales revenue minus the referral fee, fulfilment fee, storage fee, and any other Amazon charges. You can see a detailed breakdown in the Payments section of Seller Central.
What fees does Amazon deduct?
| Fee type | What it covers | Approx. UK amount |
|---|---|---|
| Referral fee | Amazon's sales commission | ~15% of selling price |
| Fulfilment fee | Pick, pack, and ship | £2.70–£9+ per unit |
| Storage fee | Monthly warehouse storage | ~£0.43/m³ per month |
These three fees come off every sale. Your profit is what remains after fees and your cost of goods.