Read the notes, then try the practice. It adapts as you go.When you're ready.
Session Length
~17 min
Adaptive Checks
15 questions
Transfer Probes
8
Amazon FBA (Fulfillment by Amazon) is a service that allows third-party sellers to store their products in Amazon's fulfillment centers, where Amazon handles storage, packaging, shipping, customer service, and returns on the seller's behalf. Sellers send their inventory to Amazon's warehouses, and when a customer places an order, Amazon picks, packs, and ships the product directly to the buyer.
Launched in 2006, FBA has transformed e-commerce by enabling individuals and businesses of all sizes to leverage Amazon's world-class logistics infrastructure. Sellers benefit from Amazon Prime eligibility, which dramatically increases product visibility and conversion rates, as Prime members tend to prefer listings that offer free two-day shipping. FBA sellers also gain access to Amazon's customer service team, which handles inquiries, returns, and refunds.
The FBA business model encompasses several strategies, including private label (creating your own branded products), wholesale (buying branded products in bulk for resale), retail arbitrage (purchasing discounted retail products for resale), and online arbitrage (sourcing discounted products from online retailers). Success in Amazon FBA requires understanding product research, supply chain management, listing optimization, advertising through Amazon PPC, and inventory management. While FBA lowers the barrier to entry for e-commerce, it demands careful attention to fees, competition, and Amazon's evolving policies to build a sustainable and profitable business.
One step at a time.
A service where sellers send inventory to Amazon's fulfillment centers and Amazon handles storage, picking, packing, shipping, customer service, and returns. Products become eligible for Amazon Prime, increasing visibility and sales potential.
Example: A seller sources 500 units of a yoga mat from a manufacturer, ships them to an Amazon warehouse, and Amazon handles every order from storage through delivery to the customer's door.
A business model where sellers create their own branded products, typically by sourcing generic products from manufacturers (often overseas), adding custom branding, packaging, and minor improvements, then selling them under a unique brand name on Amazon.
Example: A seller finds a popular garlic press on Amazon, works with a factory in China to manufacture a similar version with an ergonomic grip and their own 'KitchenPro' branding and logo.
The systematic process of identifying profitable product opportunities on Amazon by analyzing demand (search volume and sales velocity), competition levels, profit margins, and market trends using tools and data-driven criteria.
Example: Using Jungle Scout, a seller discovers that silicone baking mats have high monthly search volume, moderate competition with average reviews under 500, and potential profit margins above 30% after all fees.
The featured offer section on a product detail page where customers can directly add items to their cart. Multiple sellers may list the same product, but only one wins the Buy Box at any given time, and roughly 83% of Amazon sales go through it.
Example: Three sellers list the same Bluetooth speaker. The seller with the best combination of competitive price, high seller rating, and FBA fulfillment wins the Buy Box and captures most of the sales.
Amazon's internal advertising platform that allows sellers to bid on keywords so their products appear in sponsored placements within search results and on product detail pages. Sellers pay only when a shopper clicks their ad.
Example: A seller launches a new stainless steel water bottle and runs Sponsored Products ads targeting keywords like 'insulated water bottle' and 'BPA free water bottle,' paying $0.85 each time a shopper clicks the ad.
The costs Amazon charges FBA sellers, including fulfillment fees (picking, packing, and shipping per unit), monthly storage fees (based on cubic footage), long-term storage fees for inventory over 365 days, and referral fees (a percentage of the sale price, typically 8-15%).
Example: A product selling for $25.00 might incur a $5.40 fulfillment fee, a $3.75 referral fee (15%), and $0.15 in monthly storage, leaving the seller with $15.70 before cost of goods.
The process of crafting a product listing's title, bullet points, description, backend keywords, and images to maximize both organic search ranking within Amazon's A9/A10 algorithm and conversion rate from browsers to buyers.
Example: Instead of titling a product 'Knife Set,' an optimized listing reads 'Professional 8-Piece Kitchen Knife Set - High Carbon Stainless Steel Chef Knives with Ergonomic Handles and Wooden Block.'
A selling strategy where individuals purchase discounted or clearance products from brick-and-mortar retail stores (such as Walmart, Target, or TJ Maxx) and resell them on Amazon at a higher price for profit.
Example: A seller finds a popular board game marked down to $8 at a Target clearance sale and lists it on Amazon for $24.99, netting a profit after Amazon fees.
More terms are available in the glossary.
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