Quick answer: Amazon FBA (Fulfilment by Amazon) means you send your stock to Amazon’s warehouses. Amazon stores it, then picks, packs and ships each order, and handles customer service and standard returns. You still choose the product, write the listing, set the price, pay for advertising and cover Amazon’s fees. On Amazon UK those fees are a referral fee (8% to 15% in most categories), a fulfilment fee (from £1.46 a unit) and monthly storage. FBA runs your fulfilment. It does not run your business.

Last verified: 10 November 2026. Figures are for Amazon UK and exclude VAT unless stated. Amazon changes fees often, so check the Amazon UK pricing page before you buy stock.

In this guide

How we label sources. Each table or chart ends with a source line. “Amazon Statement” comes from Amazon’s own pages. “Independent Finding” comes from a named third-party publication. “Vendor-Tool Estimate” comes from a seller-tool company’s calculator. “Regulator Statement” comes from a regulator. “Illustrative, Not Real Data” means invented numbers used only to show how the maths works.

1. What Is Amazon FBA?

FBA stands for Fulfilment by Amazon. It is a service for third-party sellers, meaning businesses and individuals who sell on Amazon but are not Amazon itself. Amazon says that with FBA you send your products to its fulfilment centres, and it picks, packs, ships and provides customer service for them. Amazon also describes FBA in its own seller guide.

Both Individual and Professional plan sellers can use FBA. In practice, though, the Individual plan has no Buy Box eligibility and no advertising tools, so most FBA sellers choose the Professional plan (Independent Finding, WorldFirst UK). The Buy Box is the “Add to basket” offer shown on a product page.

The alternative is selling directly, where you store, pack and post every order yourself. Amazon calls that Fulfilled by Merchant (FBM). Section 6 compares the two.

2. How Amazon FBA Works, Step by Step

The process has eight steps. You do the first five. Amazon does the next three, although you still monitor stock and payments.

Amazon FBA process flowchartEight steps from opening a seller account to receiving payment, showing which steps the seller does and which Amazon does.Step 1: Open seller account (You)Step 1Open selleraccountYouStep 2: Choose a product (You)Step 2Choose a productYouStep 3: Create the listing (You)Step 3Create the listingYouStep 4: Enrol in FBA (You)Step 4Enrol in FBAYouStep 5: Prep and ship stock (You)Step 5Prep andship stockYouStep 6: Check-in and storage (Amazon)Step 6Check-in andstorageAmazonStep 7: Pick, pack, ship, support (Amazon)Step 7Pick, pack,ship, supportAmazonStep 8: Get paid (Amazon)Step 8Get paidAmazonYou do thisAmazon does this
The Amazon FBA process, from account to payout

Source: Amazon seller guidance, simplified by The UK Post · Amazon Statement · checked 10 November 2026

Step 1: Create an Amazon seller account

Choose a plan, then pass Amazon’s identity and business checks. You will usually need ID, bank details, tax information and a payment card for fees. The Individual plan charges £0.75 per item sold. The Professional plan costs £25 a month (both excluding VAT). The Professional fee starts when you finish registering, not when you make your first sale (Independent Finding, WorldFirst UK).

Step 2: Find a product to sell

Check demand, competition, size, weight and category rules before you buy any stock. Work out your profit using all Amazon’s fees first. If you need ideas, start with our list of the best things to sell online, then test each one against the cost stack in section 4. Also check Amazon’s product restrictions (section 7).

Step 3: Create your product listing

Every product in Amazon’s catalogue has an ASIN (Amazon Standard Identification Number), a unique product code. If your product already exists, you match its ASIN and add your offer. If it does not, you create a new listing with a title, images, description and price. Branded items usually need a GS1 barcode (GTIN). You also meet two other codes: your SKU, which is your own stock reference, and the FNSKU, the barcode Amazon uses to track your units in its warehouse.

Step 4: Enrol your products in FBA

When you create or edit an offer in Seller Central, choose Fulfilled by Amazon instead of Fulfilled by Merchant. You can convert an existing listing the same way. Amazon checks that the product is eligible for FBA, so restricted or non-compliant items are blocked.

Step 5: Prepare and ship products to Amazon

Use the “Send to Amazon” workflow in Seller Central. You tell Amazon how many units you are sending, label each unit if needed, pack them into boxes, print the box labels and book a carrier. Section 8 lists the prep rules.

Step 6: Amazon checks in and stores your stock

Amazon’s warehouse team scans your boxes and adds the units to your inventory. Once they are checked in, your listing can show as available and Prime eligible. If units arrive damaged or go missing, you can report it in Seller Central. Amazon may reimburse eligible losses, so check its current policy.

Step 7: Amazon fulfils customer orders

When a customer buys, Amazon picks the item, packs it, ships it and answers delivery questions. Amazon also handles standard returns. Customers see Prime delivery promises because Amazon controls the shipping (see what time Amazon delivers).

Step 8: Receive payment and manage your business

Amazon takes its fees from your sales and pays the balance into your bank account, usually about every 14 days. Settlement and transaction reports show every fee. Keep watching stock levels so you can restock before you sell out, and before slow stock starts attracting surcharges.

3. What You Handle and What Amazon Handles

Many beginners think Amazon runs the whole business. It does not. It runs fulfilment.

You handleAmazon handles
Choosing productsStoring inventory
Finding suppliersPicking products
Buying inventoryPacking orders
Creating listingsShipping orders
Product safety and complianceCustomer service for FBA orders
Setting pricesStandard FBA returns processing
Managing advertisingFulfilment operations
Monitoring stock and restockingInventory check-in

Source: Amazon fulfilment description, simplified · Amazon Statement · checked 10 November 2026

4. How Much Does Amazon FBA Cost in the UK?

FBA has no single fee. What you pay depends on the category, size, weight, how long stock sits in storage and the time of year. There is no monthly FBA subscription in the UK. You pay for the services you use, on top of your selling plan.

Seller plan fees

PlanCost (excl. VAT)Best for
Individual£0.75 per item soldTesting a product, fewer than about 34 sales a month
Professional£25 a monthRegular sellers: unlocks advertising, Buy Box and bulk tools

Source: sell.amazon.co.uk/pricing · Amazon Statement · checked 10 November 2026

The Professional plan becomes cheaper from the 34th sale in a month, because 34 × £0.75 is £25.50. If you cannot reclaim VAT, the £25 fee costs £30, which moves the break-even to 40 items.

Individual versus Professional plan cost by items soldLine chart: the Individual plan costs £0.75 per item and the Professional plan costs £25 a month, so they break even at about 34 items.£0£10£20£30£4001020304050Individual plan: £0.75 per item soldProfessional plan: £25 a monthBreak-even: about 34 itemsIndividual: £0.75 per itemProfessional: £25 a monthItems sold per monthMonthly plan cost (excl. VAT)
Individual vs Professional: the break-even point

Source: Amazon UK plan prices, chart by The UK Post · Amazon Statement · checked 10 November 2026

Referral fees

A referral fee is Amazon’s commission on each sale. It is a percentage of the total price the customer pays. Most categories pay between 8% and 15%, and most have a £0.25 minimum. Amazon sets different rates because margins and competition differ by category.

CategoryUK referral fee
Kitchen; Toys and Games; Pet Supplies15%
Home Products8% up to £20, then 15%
Beauty, Health and Personal Care8% up to £10, then 15%
Clothing and Accessories5% up to £15; 10% from £15 to £20; 15% above £20
Computers; Consumer Electronics7%
Jewellery20% up to £225, then 5%
Amazon Device Accessories45%

Source: sell.amazon.co.uk/pricing · Amazon Statement · checked 10 November 2026. Rates for FBA items above £40 differ in some categories, so check your category.

FBA fulfilment fees

This is the per-unit charge for picking, packing and delivering. It depends on the size tier and weight of your packed product. For parcels and most oversize items, Amazon charges on the higher of actual weight and dimensional weight (length × width × height in cm ÷ 5,000).

Amazon UK FBA fulfilment fee by size tierHorizontal bar chart of Amazon UK FBA standard fulfilment fees from £1.83 for a light envelope to £13.04 for heavy oversize.Light envelope (≤20 g)Light envelope (≤20 g): £1.83£1.83Standard envelope (≤210 g)Standard envelope (≤210 g): £2.10£2.10Large envelope (≤960 g)Large envelope (≤960 g): £2.72£2.72Small parcel (≤400 g)Small parcel (≤400 g): £3.00£3.00Standard parcel (≤900 g)Standard parcel (≤900 g): £3.06£3.06Standard parcel (≤11.9 kg)Standard parcel (≤11.9 kg): £3.58£3.58Standard oversize light (from)Standard oversize light (from): £4.35£4.35Bulky oversize (from)Bulky oversize (from): £10.20£10.20Heavy oversize (up to 31.5 kg)Heavy oversize (up to 31.5 kg): £13.04£13.04
UK FBA fulfilment fee per unit by size tier (standard rates, non-peak)

Source: Amazon Europe FBA rate card, effective 1 February 2026 · Amazon Statement · fees before the fuel surcharge · checked 10 November 2026

  • Low-Price FBA gives cheaper rates (£1.46 to £2.70) to products priced at £20 or less including VAT, no larger than 35 × 25 × 12 cm and no heavier than 400 g. The price limit is £10 in some categories (Independent Finding, Mr Prime UK, citing Amazon).
  • Fuel and logistics surcharge: 1.5% of the fulfilment fee from 17 April 2026, rising to 2% from 2 November 2026.
  • Fee cut: Amazon reduced UK parcel fulfilment fees by an average of £0.26 a unit from 15 December 2025.

Source: sell.amazon.co.uk/pricing and Amazon seller forum notice · Amazon Statement · checked 10 November 2026

FBA storage fees

Amazon charges monthly storage by the cubic foot your stock occupies, based on the daily average. Rates roughly double in the last quarter for most standard-size products, up from £0.76 to £1.51 (a 99% rise).

UK FBA monthly storage fees, off-peak versus peakGrouped bar chart of Amazon UK monthly storage fees per cubic foot for January to September and October to December.£0.00£0.40£0.80£1.20£1.60Most standard-size Jan–Sep: £0.76 per cubic foot£0.76Most standard-size Oct–Dec: £1.51 per cubic foot£1.51Clothing, footwear, eyewear, bags Jan–Sep: £0.62 per cubic foot£0.62Clothing, footwear, eyewear, bags Oct–Dec: £0.82 per cubic foot£0.82Oversize Jan–Sep: £0.55 per cubic foot£0.55Oversize Oct–Dec: £0.87 per cubic foot£0.87Most standard-sizeClothing, footwear,eyewear, bagsOversizeJanuary to SeptemberOctober to December
UK monthly storage fee per cubic foot, peak vs off-peak

Source: sell.amazon.co.uk/pricing · Amazon Statement · rates in £ per cubic foot per month · checked 10 November 2026

  • Storage utilisation surcharge: applies when your stock cover goes above 22 weeks, if certain conditions are met. For standard-size stock it ranges from £0.42 to £2.29 a cubic foot.
  • Aged inventory surcharge: applies to stock held for more than 241 days in the UK (see section 10).
  • Overage fees: no longer applied in the UK since 1 July 2024 (Independent Finding, Mr Prime UK).

Inbound placement fees

The US charges an inbound placement service fee when Amazon splits your shipment across warehouses. In the UK, box-level inventory placement carries no additional cost, according to Amazon’s help page as reported by Mr Prime (Independent Finding, checked October 2026). Amazon Warehousing and Distribution (AWD) is Amazon’s bulk storage service that feeds FBA. Availability varies by marketplace, so check Seller Central before planning around it.

Other costs to plan for

  • Product cost, supplier charges and freight to the UK.
  • Packaging, barcodes and labels. Amazon charges £0.15 a unit to label stock that arrives without a barcode (Independent Finding).
  • Advertising. Amazon Ads is a separate cost, not an FBA fee.
  • Refund administration fee: the lesser of £5 or 20% of the referral fee.
  • Removal and disposal fees for stock you pull out.
  • A 2% digital services fee on Amazon’s per-sale fees, reported by third-party UK fee guides (Independent Finding).

What does it cost to start? There is no fixed figure. Amazon’s own cost is £0 to open an Individual account, or £25 a month for Professional. The real startup cost is your first batch of stock, freight and launch advertising.

Recent fee changes

DateChangeSource
15 Dec 2025UK parcel fulfilment fees cut by £0.26 a unit on averageAmazon Statement
5 Jan 2026Low-Price FBA extended to products at or under £20Amazon Statement
1 Feb 2026Current UK storage rates in forceIndependent Finding
17 Apr 20261.5% fuel and logistics surcharge startsAmazon Statement
2 Nov 2026Surcharge rises to 2%Amazon Statement

Source: sell.amazon.co.uk/pricing, Amazon UK seller forums, Mr Prime UK · checked 10 November 2026. US fees differ: its surcharge is 3.5% from 17 April 2026.

5. How to Calculate Amazon FBA Fees and Profit

Amazon’s Revenue Calculator estimates referral and fulfilment fees from your price, size, weight and category. It does not include everything. Storage time, advertising, return rates and freight to Amazon are not fully covered, so add them yourself. Calculators from seller-tool companies use different assumptions, so treat their output as a Vendor-Tool Estimate, not an Amazon fee.

Use this formula for each product: price (ex VAT) − product cost − freight − referral fee − fulfilment fee − surcharge − storage − advertising − returns allowance = profit per unit.

Worked example (illustrative). A kitchen gadget sells for £25 including VAT. The seller is VAT-registered, so Amazon fees are shown excluding VAT. The item is a small parcel under 400 g, outside peak season.

ItemAmountNote
Sale price (ex VAT)£20.83£25.00 ÷ 1.2
Product cost−£6.00Assumed
Freight to Amazon−£0.50Assumed
Referral fee (15% of £25)−£3.75Kitchen category
Fulfilment fee−£3.00Small parcel, ≤400 g
Fuel and logistics surcharge (2%)−£0.062% of £3.00
Storage (about 1.5 months)−£0.10Assumed
Advertising−£2.50Assumed
Returns allowance−£0.40Assumed
Profit per unit£4.5221.7% of ex-VAT price, before tax and overheads

Source: fees from Amazon UK rate card; product cost, freight, storage, advertising and returns are invented · Illustrative, Not Real Data

Where an illustrative £20.83 sale goesDonut chart splitting an illustrative £20.83 ex-VAT sale into costs and profit.Product and freight: £6.50 (31.2%)Referral fee: £3.75 (18.0%)Fulfilment and surcharge: £3.06 (14.7%)Advertising: £2.50 (12.0%)Storage and returns: £0.50 (2.4%)Profit: £4.52 (21.7%)£4.52profit per unitProduct and freight£6.5031.2%Referral fee£3.7518.0%Fulfilment and surcharge£3.0614.7%Advertising£2.5012.0%Storage and returns£0.502.4%Profit£4.5221.7%
Where each £20.83 of sales goes in the worked example

Source: worked example above · Illustrative, Not Real Data

Amazon’s three fees (referral, fulfilment and storage) take £6.91, or 33.2% of the ex-VAT price. Product cost and advertising take most of the rest. Advertising alone is 12.0% here, so it pays to know your costs; our marketing statistics guide shows how ad spend varies. Seller-tool estimates for a £20 UK sale put Amazon’s fees at 22.9% to 31.6% of the price (Vendor-Tool Estimate, Mr Prime UK), which is a similar range.

6. Amazon FBA vs FBM vs Seller-Fulfilled Prime

FeatureFBAFBMSeller-Fulfilled Prime
Stores inventoryAmazonYouYou
Packs and shipsAmazonYouYou
Customer serviceAmazonYouYou
Prime badgeGenerally yesNot automaticYes, if you qualify
ReturnsAmazon handles the processYouYou
Main costsFulfilment, storage and referral feesYour own shipping, space and timeYour own shipping, plus strict Prime delivery targets
Main riskStorage fees, tied-up cashWorkload and shipping speedMissing Prime performance targets

Source: Amazon FBA and Seller Fulfilled Prime descriptions · Amazon Statement · checked 10 November 2026. Current Seller-Fulfilled Prime eligibility rules should be checked on Seller Central.

Which method should you choose?

  • Choose FBA if your product is small, sells steadily and has room in its margin for Amazon’s fees.
  • Choose FBM if the item is bulky, low-margin or slow-selling, or if you also sell elsewhere.
  • Choose Seller-Fulfilled Prime if you have your own warehouse and can hit Amazon’s delivery targets.

Sellers who also run their own shop usually keep FBM stock for it. Compare the best ecommerce platforms before you build one, or sell bundles and digital products through a checkout tool as described in our ThriveCart review.

7. Requirements and Restricted Products

To use FBA you need a verified seller account, business and tax details, and products that follow Amazon’s rules on condition, size, weight, packaging and safety. New items must generally be factory-sealed. Amazon warns that selling a non-compliant product can lead to suspension, inventory destroyed without reimbursement, or payments being withheld.

CheckWhat to verify before sending stock
CategoryWhether the category is restricted or needs approval (grocery, topical beauty and alcohol often do)
Dangerous goodsHazmat classification, including lithium batteries, which carry extra fees
ConditionNew, used or refurbished rules for your category
Expiry datesShelf-life and expiry-date rules for consumables
Brand and authenticityProof you can sell the brand, such as supplier invoices
Size and weightWhether the item fits an FBA size tier and weight limit

Source: Amazon safety, compliance and product restriction guidance · Amazon Statement · checked 10 November 2026. Rules vary by marketplace, so read the UK Seller Central pages.

8. Packaging, Labelling and Shipping Requirements

  • Barcodes: every unit needs a scannable barcode. Either apply an FNSKU label (Amazon’s own barcode) or use the manufacturer barcode if your product qualifies.
  • Unit packaging: protect each item so it survives handling. Loose, leaking or fragile items may need bagging or boxing.
  • Box labels: print the shipment labels from Seller Central and stick one on every box, with the right shipment ID.
  • Accurate contents: match the quantities in your shipment plan to what is in the box.
  • Carrier and delivery: choose a carrier in Seller Central and track the shipment until check-in is complete.

If stock arrives without a barcode, Amazon may prepare it for a fee, which is £0.15 a unit according to a UK fee guide (Independent Finding). Amazon can also refuse or flag shipments that break its rules. The most common mistakes are wrong labels, wrong quantities and weak packaging, so check each box before it leaves you.

9. Returns and Customer Service

Amazon answers customer questions and processes standard FBA returns. When a unit comes back, Amazon inspects it and decides whether it is sellable. Sellable units return to your stock. Damaged or defective units move to an unfulfillable status, and you can ask Amazon to send them back or dispose of them for a fee.

  • Refund administration fee: the lesser of £5 or 20% of the referral fee when Amazon refunds a customer.
  • Returns processing fees: these apply in some categories, such as clothing. Amounts change, so check the live UK returns page.
  • Lost or damaged stock: Amazon may reimburse eligible inventory it loses or damages. Check the current rules and deadlines.

Budget a returns allowance in your cost model. A product with a high return rate can lose money even when its headline margin looks healthy.

10. What Happens to Unsold Amazon FBA Inventory?

Unsold stock keeps costing you. You pay monthly storage, and after 241 days in the UK Amazon adds an aged inventory surcharge on top. The US starts earlier, at 181 days. Amazon checks stock age monthly, on the 15th.

Amazon UK aged inventory surcharge by stock ageBar chart of UK aged inventory surcharge per cubic foot rising from £1.18 at 241 to 270 days to £6.14 over 455 days.241–270 days241–270 days: £1.18£1.18271–300 days271–300 days: £3.14£3.14301–330 days301–330 days: £3.26£3.26331–365 days331–365 days: £3.41£3.41366–455 days366–455 days: £5.71£5.71Over 455 daysOver 455 days: £6.14£6.14
UK aged inventory surcharge per cubic foot, by age of stock

Source: Amazon Europe FBA rate card · Amazon Statement · applies on top of monthly storage; over 365 days it is £0.20 or £0.25 per unit if that is higher · checked 10 November 2026

Clothing, footwear, bags, luggage and jewellery are excluded from this surcharge. For everything else you have four options:

  • Discount it and clear the stock before it ages.
  • Remove it by creating a removal order, which sends the units back to your address for a fee.
  • Dispose of it if it cannot be sold, again for a fee.
  • Liquidate it: Amazon sells it to a liquidator and takes a 15% referral fee on the amount recovered.

Review your stock-age report well before the 241-day line, and order smaller batches if stock moves slowly.

11. Does Amazon FBA Have Peak Season Fees?

Yes. In the UK, a peak fulfilment fee applies from 15 October 2026 to 14 January 2027, and storage rates are higher from October to December. Amazon announced the 2026 UK fee in July. It adds £0.07 to £0.13 a unit on parcels and large envelopes, while Low-Price FBA and oversize items are exempt (Independent Finding, Zmartly and Mr Prime UK).

Amazon UK 2026 to 2027 peak fee calendarTimeline showing peak storage rates from 1 October to 31 December and the peak fulfilment fee from 15 October 2026 to 14 January 2027.1 Oct1 Nov1 Dec1 Jan31 JanPeak storage: 1 October to 31 DecemberPeak storage rates: 1 Oct to 31 DecPeak fulfilment fee: 15 October 2026 to 14 January 2027Peak fulfilment fee: 15 Oct 2026 to 14 Jan 2027Black Friday 27 NovCyber Monday 30 Nov
Amazon UK peak fee windows, 2026 to 2027

Source: Amazon UK pricing page and seller announcements · Amazon Statement and Independent Finding · Black Friday and Cyber Monday dates for 2026 · checked 10 November 2026

The two windows do not match. Sales in early January still pay the peak fulfilment fee, but storage is back to standard rates. To limit the cost, send stock early, avoid over-ordering and check which products will actually sell before December.

12. Can You Sell on Amazon Without Holding Inventory?

Sometimes, but only through drop shipping that follows Amazon’s policy. Amazon says drop shipping is not acceptable unless customers can clearly see that you are the seller of record. In its Drop Shipping Policy, Amazon sets these conditions:

  • You must be the seller of record on invoices, packing slips and outside packaging.
  • You must remove any third-party identifying details from the shipment.
  • You must have an agreement with your supplier that names you as the only seller of record.
  • You must accept and process customer returns yourself.

Buying a product from another retailer, including Amazon, and having it shipped straight to your customer is not allowed. Avoiding physical stock does not remove your duties. You are still responsible for listings, compliance, returns and account health, and a supplier’s mistake can still damage your account.

13. Is Amazon FBA Worth It in 2026?

It depends on your margin after every cost, not on FBA itself. Use the table below to see where you stand.

FactorUsually works for FBAUsually a warning sign
Margin after all feesHealthy after fees and adsThin before ads are added
Product sizeSmall and lightBulky or heavy
Stock turnoverSells within weeksSits for months
Return rateLowHigh
CapitalEnough to restock and advertiseEverything tied up in one batch
ComplianceYou can document and manage itYou cannot prove authenticity or safety

Source: editorial framework by The UK Post · Opinion

BenefitsDrawbacks
Amazon handles storage, packing and shippingSeveral fees stack on each sale
Prime-eligible fulfilmentStorage costs for slow stock
Less daily packing workHigher fees in peak season
Amazon handles standard FBA customer serviceLess control over fulfilment
Easier to scale ordersCash tied up in inventory

Source: Amazon FBA description and fee pages, summarised · Amazon Statement

How much money can you make?

No reliable average exists. I found no named, dated study that measures how many FBA sellers stay profitable, so this guide gives none. Earnings depend on demand, competition, advertising costs, storage time and returns, and revenue is not profit. Treat any “typical seller income” claim as a warning sign unless it names its method.

14. Amazon FBA in the UK, US and India

FBA works in each country, but fees, tax and rules differ. Never use one country’s fee table for another.

UKUSIndia
Selling plans£0.75 per item or £25 a month$0.99 per item or $39.99 a monthDifferent structure; check Amazon.in
Referral fees8% to 15% in most categoriesAbout 8% to 17% in most categories5% to 17%
Fuel and logistics surcharge2% from 2 Nov 20263.5% from 17 Apr 2026Not publicly confirmed
Aged stock surchargeFrom 241 daysFrom 181 daysNot publicly confirmed
Inbound placement feeNone for box-level placementYes, per unitNot publicly confirmed
Sales taxVATState sales tax, collected by AmazonGST is mandatory for commercial sellers

Source: sell.amazon.co.uk/pricing; Amazon US seller pages and fee notices; SW Cybernetics for India referral fees (Independent Finding) · checked 10 November 2026. UK and India fee schedules update often, so verify live.

In the US, Amazon sellers also compete with retailers such as Walmart, which we cover in our Walmart statistics. India’s closing fees (₹5 to ₹60 per item) and weight handling fees (from ₹29) come from an agency guide, not Amazon, so confirm them on Amazon.in.

Tax and registration

UK-based sellers must register for VAT when taxable turnover passes £90,000 in any rolling 12 months, and all sales across channels count. Non-UK sellers who hold stock in UK warehouses may have to register from their first sale (Independent Finding, citing GOV.UK). See GOV.UK’s Register for VAT page. In the US, Amazon collects state sales tax under marketplace facilitator laws. This is general information, not tax advice, so ask an accountant.

15. Account Health, Suspensions and Closing Your Account

Amazon monitors your performance and policy compliance. Keep your order defect rate under 1%, sell only authentic and permitted products, respond to policy warnings, and monitor stock and shipments. Accounts can be suspended for selling prohibited products, authenticity or intellectual property complaints, repeated policy breaches or poor performance. Be careful with services that promise guaranteed reinstatement for an upfront fee.

To close an account, you must complete open orders, settle balances and fees, and remove or dispose of remaining FBA stock. Then submit the request in Seller Central (in the US this is under Settings, then Account Info, then Close Account). Check Amazon’s official instructions for your marketplace first, because obligations can continue after closure.

16. Amazon FBA Scams and Misleading Income Claims

Many “FBA course” and “done-for-you store” offers have no link to Amazon. Regulators have acted on this before. In 2018 the US Federal Trade Commission said that defendants unconnected to Amazon made false or unsubstantiated earnings claims, including “make $5,000 to $10,000 in the next 30 days”. A later FTC settlement order banned false earnings claims and set a judgment of more than $102 million, partly suspended (Regulator Statement). In 2025 the FTC alleged that another company, Click Profit, sold a passive-income scheme using false AI claims; those are allegations, not findings.

In the UK, the Advertising Standards Authority has ruled that ads for training courses were misleading when they implied typical earnings without evidence (Independent Finding, Osborne Clarke summary).

Warning signWhy it matters
Guaranteed income or profitNobody can guarantee sales or margins
Pressure to buy a course todayGenuine businesses don’t need rushed decisions
Requests for your seller loginSharing credentials can get your account closed
“Done-for-you” store promisesAmazon requires you to run your own account
Earnings screenshotsEasy to fake and rarely typical
Unexpected “Amazon support” contactCheck any message inside Seller Central, never from links

Source: FTC press release and settlement, ASA ruling summary; checklist by The UK Post · Regulator Statement and Opinion

17. Frequently Asked Questions About Amazon FBA

How does Amazon FBA work for beginners?

You send stock to Amazon, Amazon stores it and ships each order, and you pay fees on every sale.

What does FBA mean on Amazon?

FBA means Fulfilment by Amazon, the service where Amazon stores, packs and ships your products.

Is Amazon FBA free to use?

No. You pay a selling plan, referral fees, per-unit fulfilment fees and storage, plus optional advertising.

How much does it cost to start Amazon FBA?

There is no fixed amount. Amazon’s own cost is £0 to £25 a month. Your stock, freight and advertising make up most of the spend.

Do you need a business licence to sell on Amazon FBA?

Amazon asks for business and tax details when you register. You must also report trading income to HMRC and register for VAT above £90,000. Check GOV.UK for your situation.

Can anyone sell using Amazon FBA?

Anyone who passes verification can, if the products are allowed. Some categories need Amazon’s approval.

Does Amazon FBA handle shipping?

Yes, for customer orders. You still pay to ship your stock to Amazon’s warehouses.

Does Amazon FBA handle customer returns?

Yes, standard FBA returns, though fees can apply, and unsellable stock may cost you.

How long does Amazon take to receive FBA inventory?

Amazon gives no fixed time. It depends on the carrier, shipment size and warehouse workload, so track it in Seller Central.

How do Amazon FBA sellers get paid?

Amazon deducts its fees from sales and pays the balance into your bank account, usually about every 14 days.

Can you use Amazon FBA without holding inventory?

Not strictly. FBA needs stock in Amazon’s warehouses. Compliant drop shipping is a separate model (section 12).

Is Amazon FBA better than FBM?

Neither always wins. FBA saves time and gives Prime delivery, while FBM can be cheaper for bulky or slow-moving items.

Can you sell used products through Amazon FBA?

Only where Amazon’s category and condition rules allow it. Many categories restrict used items.

Is Amazon FBA still profitable in 2026?

It can be, for products with enough margin after all fees. It is not profitable by default.

Can you sell internationally using Amazon FBA?

Yes, through Amazon’s international programmes. Fees, VAT and rules differ in each marketplace.

What happens if your Amazon FBA products do not sell?

You pay storage, and aged stock attracts surcharges. You can discount, remove, dispose of or liquidate it.

Can you cancel an Amazon FBA seller account?

Yes, through Seller Central, once orders, balances and stock are cleared.

Do Amazon FBA sellers pay taxes?

Yes. Sellers pay tax on profits and must handle VAT or other sales taxes where they apply.

18. Final Verdict: Is Amazon FBA Right for You?

Amazon FBA saves you the work of storing, packing and posting, and gives your products Prime delivery. It does not remove the work of choosing products, managing stock, advertising and staying compliant. Its fees stack up, so calculate every cost before you buy stock, and check Amazon’s live UK fee pages. FBA works best for small, steadily selling products with a healthy margin. If your margin is thin, your stock sells slowly or your cash is limited, test with the Individual plan or consider FBM first.

This is general information, not legal, tax or financial advice.

Sources

Change log: 10 November 2026 – first published. We will update this guide when Amazon changes its UK fees.