Amazon wouldn’t be what it has become today without its massive network of interconnected fulfillment centers. While sellers signed into the FBA Program usually aren’t familiarized with the inner workings of Amazon, learning about them may be a big relief when facing different situations like returns, long-term storage fees after overstocking or understanding why Amazon charges so much money to FBA sellers.

The backbone of Amazon 

Fulfillment centers are the massive warehouses that store, pick and pack products from sellers from all over the US. Many even spread to other countries around the world. Through them, Amazon can achieve its biggest and most attractive service: Fast shipping and delivery. In great measure, it’s one big reason for the company’s success.

All sellers can join Amazon’s logistics network through the FBA Program (Forwarded By Amazon). Here’s what Fulfillment Centers do:

• Receiving and Storing Inventory: Sellers send their products to Amazon’s fulfillment centers. Once there, items are scanned, counted, and stored until purchased by customers. 
• Order Fulfillment: When a customer places an order, the fulfillment center picks the item from storage, packs it, and ships it to the customer. In the process, they select carriers and service levels in a mix of human workers and robots. They will print labels and give each product to a shipping provider.
• Customer Service and Returns: Amazon handles customer questions, returns, and other service issues. It processes returned items by restocking, disposing of, or returning them to the seller, depending on their condition.

Recognizing where and how products are stored helps sellers optimize their inventory by shipping to the best-located warehouses to reduce delivery times, all while avoiding long-term storage fees. Of course, knowing all about Amazon Warehouse Codes is key to upgrading your inventory management.

How do Amazon Fulfillment Centers operate?

When sellers ship their products to Amazon, they are received at the fulfillment center and stored in different areas. Once a customer purchases a product, the fulfillment center takes over the entire order and processes it. 

Amazon employees (or automated systems) locate the product, pick it from the shelves, package it in branded packaging, and prepare it for shipping. This process uses Amazon’s top-of-the-line inventory management system, which monitors the location and availability of each product that’s inside the building.

According to the customer’s location and shipping option, Amazon selects the most economical carrier and shipping type. That is why Amazon’s fast delivery service is possible… and why only products signed up for the FBA Program are Prime Products.

Fulfillment centers handle customer service and returns too. Plus, if signed to the FBA Program, all returns are processed by the personnel in Fulfillment Centers rather than by the seller.

How much do Amazon Fulfillment Centers charge?

Amazon’s FBA Program fees are the charges sellers pay for using Amazon’s Fulfillment Centers with their services. When you know exactly how Amazon charges you for storing and shipping your products (they look at size, weight, and how long your inventory sits in their warehouse), you can pick items that cost less to store and ship and still make a profit. 

You’ll also avoid unpleasant surprises, like suddenly paying more to store products during the holiday rush. That way, you can plan your budget better and keep your profits steady all year round. FBA fees are divided into two categories: fulfillment and storage.

Fulfillment fees are charged per unit sold and cover the cost of picking, packing, shipping, handling, customer service, and returns. These include Amazon FBA Placement Fees. The amount depends on the product’s size and weight; heavier items imply higher fees. For example, a standard-size item under 1 lb will cost less to fulfill than an oversized item weighing several pounds.

Storage fees are based on the space a seller’s inventory occupies in the fulfillment center. Amazon charges these fees monthly, increasing rates during the peak holiday season (October–December). Plus, long-term storage fees apply to inventory stored for over 365 days, encouraging sellers not to overstock and avoid slow-moving products.

Benefits for Sellers

Amazon Fulfillment Centers shine when sellers are signed to the FBA Program, which provides the following key benefits (for a price):

• Prime eligibility – Only products signed to the FBA Program get the chance to be tagged as Prime Products
• Resign tasks – Fulfillment Centers take care of all functions mentioned before. That is saved time, which sellers can use to manage other aspects of their business.
• Scalability – Access to Amazon’s fulfillment network allows sellers to expand their business without managing their storage and shipping infrastructure.

Conclusion 

Knowing how Amazon Fulfillment Centers operate gives sellers an edge when signed to the FBA program. Instead of blindly trusting the system, informed sellers can proactively manage their inventory, prevent unnecessary fees, and better plan for sales cycles. 

However, sometimes you just need your products to rank higher on Amazon’s A9 algorithm. At BellaVix, we specialize in boosting product visibility, optimizing listings, and driving targeted traffic to help Amazon sellers grow. Don’t hesitate to contact the BellaVix Team to know more!

Frequently Asked Questions About Amazon Fulfillment Centers and FBA Logistics

How do Amazon Fulfillment Centers actually work?

When you send your products to Amazon, they’re received, scanned, and stored in bins and shelves inside massive fulfillment centers. When a customer places an order, Amazon’s system locates the item, picks it, packs it, and ships it using a carrier that delivers the fastest and cheapest. The entire process is tracked by Amazon’s internal software, down to the last unit.

What’s the difference between FBA and FBM on Amazon?

FBA means Amazon stores, ships, and services your orders. FBM means you handle shipping and customer support yourself. With FBA, your products become Prime-eligible and benefit from Amazon’s fast shipping and customer trust. FBM offers more control and lower fees but requires more manual effort.

Why does Amazon split my inventory into different warehouses?

Amazon wants your products close to where customers are buying. That’s why they break up your shipments and send them to multiple warehouses. It helps reduce delivery time and shipping costs. You can opt into the Inventory Placement Service if you prefer to ship everything to one location, but it costs extra.

How can I avoid long-term storage fees in Amazon warehouses?

Keep an eye on how long your inventory has been in storage using the Inventory Age report in Seller Central. To avoid long-term fees, remove or liquidate aging inventory before it hits the 365-day mark. Managing your restock limits and sell-through rate is key to keeping fees low.

How much does it cost to use Amazon’s Fulfillment Centers?

Costs are divided into two parts: fulfillment fees and storage fees. Fulfillment fees are charged per unit sold and depend on weight and size. Storage fees are based on how much space your inventory takes up and are billed monthly. Expect higher rates during Q4 and for inventory that sits longer than 12 months.

Are all Prime products stored in Fulfillment Centers?

Most are, through the FBA program. But some sellers use Seller Fulfilled Prime, where they handle storage and shipping themselves while still meeting Amazon’s strict Prime delivery standards. It’s less common, harder to qualify for, and not available to new sellers.

What happens when a customer returns an FBA item?

Returns go back to the fulfillment center. Amazon inspects the item and decides whether to restock, dispose of, or return it to you based on its condition. You don’t deal with the return directly, but you’re charged a return fee either way.

Can I choose which Fulfillment Center to send my products to?

Not usually. Amazon automatically assigns destinations when you create a shipping plan. The goal is to position your products closest to customers. If needed, you can pay to consolidate your shipments through Inventory Placement Service.

What are Amazon warehouse codes and why do they matter?

Warehouse codes like ONT8 or SMF3 tell you which Fulfillment Center your inventory is going to. These codes help you track shipments and understand where inventory is stored or delayed. Sellers who understand these codes can better manage lead times and transit issues.