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by Sarah Craig February 10, 2025
Fulfillment by Amazon is a program that allows e-commerce sellers to store their merchandise in Amazon’s fulfillment centers, and delegate the packing, fulfillment services, shipping, and even customer service for those products to Amazon. Also called FBA for short, the program gives sellers more flexibility by taking these responsibilities off their plate, and giving them more time to grow their business. There are some big benefits to FBA for e-commerce sellers. However, those benefits come at a cost. We’ll share everything you need to know when it comes to Fulfillment by Amazon. Let’s dig in.
Once a seller is signed up for Fulfillment by Amazon, they’ll be able to take advantage of a list of benefits the fulfillment process offers.
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Sounds like a great setup, right? But how much does it cost to be a FBA seller? Here are a few fees associated with Amazon’s fulfillment program:
To understand what FBA costs would look like for you, take advantage of the Fulfillment by Amazon Revenue Calculator on Seller Central. You’ll add your information and get an estimate of how much becoming a FBA seller would cost you.
Sales tax has changed quite a bit for Amazon sellers over the past few years. As a result of the 2018 South Dakota v. Wayfair Supreme Court ruling, states were allowed to pass marketplace facilitator laws . These laws require that large online marketplaces like Amazon, Walmart, eBay, Etsy and others collect sales tax on behalf of 3rd party sellers selling on the platform.
This is mostly great news for Amazon sellers! But, as with anything sales tax related, there are a few caveats. You can read a whole lot more about how marketplace facilitator laws affect Amazon sellers here , but the important things to know about Amazon fulfillment centers are sales tax are:
So as you can see, while Amazon now collects sales tax on sellers’ behalf, storing inventory in an Amazon fulfillment center can still create a sales tax compliance headache for Amazon sellers.
That’s why it’s vital for Amazon sellers to know where their products are stored! Amazon does not publish comprehensive information about where their fulfillment centers are located. So using independent research, news stories about new fulfillment centers, interviews with current FBA sellers, and even postings on Amazon’s job boards, TaxJar has come up with what we hope is a true and complete list of Amazon Fulfillment Centers in the United States and Canada . We will strive to keep this list updated as new fulfillment centers are built.
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