Fulfillment by Amazon is a service where Amazon stores, packs, and ships products on behalf of sellers. This allows businesses, including non-U.S. residents selling in the U.S. market, to use Amazon’s logistics network and customer service instead of handling orders themselves.
What is FBA (Fulfillment by Amazon)?
Fulfillment by Amazon (FBA) enables sellers to send their inventory to Amazon’s fulfillment centers, where Amazon takes care of storage, order processing, packaging, shipping, and even returns handling. When a customer places an order, Amazon fulfills it directly, often with Prime delivery speeds. This system is particularly beneficial for non-U.S. entrepreneurs running e-commerce businesses because it eliminates the need for them to rent warehouses, hire local staff, or manage shipping from abroad.
For non-U.S. sellers, FBA can simplify market entry into the U.S. by allowing them to focus on sourcing and marketing their products while Amazon manages the logistics. However, they must still handle certain compliance requirements, such as U.S. sales tax obligations, obtaining an EIN for tax purposes, and potentially registering for state sales tax in states where Amazon stores its inventory (as this may create tax nexus).
FBA works best for businesses that sell physical products with consistent demand, manageable size and weight, and healthy profit margins that can absorb Amazon’s storage and fulfillment fees. It is particularly well-suited for private label brands, resellers of popular items, and e-commerce businesses targeting U.S. customers from abroad. Products that are small, lightweight, and easy to ship tend to perform best in FBA due to lower costs. Seasonal or trending items can also do well, provided the seller manages inventory carefully to avoid excess storage fees. For non-U.S. founders, FBA is most beneficial when combined with strong online marketing and a reliable supply chain.
FBA can also improve customer trust and sales performance, as products fulfilled by Amazon are eligible for Prime shipping and often rank higher in search results. That said, sellers should factor in FBA fees, storage limits, and the need to maintain inventory levels to avoid stockouts or extra charges.
In summary, Fulfillment by Amazon offers a turnkey logistics solution for sellers, making it especially appealing to non-U.S. residents who want to operate in the U.S. e-commerce space without the overhead of managing physical operations locally.
