Amazon FBA

Amazon FBA (Fulfillment by Amazon) is a logistics service where sellers ship inventory to Amazon's fulfillment centers, and Amazon handles storage, picking, packing, shipping, customer service, and returns for orders placed on the Amazon marketplace and optionally through Multi-Channel Fulfillment for other sales channels. FBA sellers gain access to Prime eligibility (reaching 200+ million Prime members globally), which typically increases conversion rates by 25–50% compared to merchant-fulfilled listings. FBA fee structures include storage fees ($0.87 per cubic foot standard from January through September, $2.40 during Q4 peak season), fulfillment fees ($3.22–$6.90+ per unit depending on size and weight tier), and long-term storage surcharges ($6.90 per cubic foot for inventory stored over 271 days). For businesses using FBA, the financial and compliance implications are substantial: inventory stored across multiple Amazon fulfillment centers creates physical nexus in those states, triggering sales tax collection and remittance obligations in potentially 20–30 states simultaneously. Amazon does not disclose in advance which fulfillment centers will receive inventory, making nexus tracking particularly challenging. Additionally, FBA payout reconciliation requires matching Amazon's bi-weekly settlement reports against expected revenue, accounting for fees, refunds, reimbursements, and inventory adjustments — a process that commonly reveals $500–$5,000 per month in unrecovered discrepancies for six-figure sellers. doola helps FBA sellers establish compliant US business entities, obtain EINs, manage multi-state sales tax obligations, and maintain clean bookkeeping that accurately tracks Amazon settlement reconciliation.