Glossary
FBA
Fulfillment by Amazon: Amazon stores and ships your inventory and handles customer service and returns.
Definition
FBA products are Prime-eligible, which raises conversion rate and Buy Box share, and Amazon handles delivery, returns and most customer service. In exchange, sellers pay fulfilment fees per unit (by size and weight), monthly storage fees and surcharges for aged inventory and peak season.
FBA interacts with advertising in two ways: Prime badge and fast delivery lift conversion, which lowers ACoS, and stock-outs stop ads and reset rank. Inventory planning is therefore part of advertising planning.
How we use it
We track stock cover on every advertised ASIN and throttle campaigns before a stock-out rather than letting rank collapse.
Get my free auditFBA or FBM?
FBA for most products that fit standard size tiers and sell steadily. FBM (or Seller Fulfilled Prime) for oversize, slow or custom items where FBA fees exceed the conversion benefit.
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