Glossary/Operations

FBA (Fulfillment by Amazon)

FBA is the default fulfillment choice for most consumer-product Amazon sellers. The Prime badge it confers is the single largest CVR lever available short of changing the product itself. Trade-offs: storage fees compound (especially the long-term storage penalty at 365+ days), inventory tied up in Amazon warehouses can't be sold off Amazon without recall fees, and the IPI (Inventory Performance Index) score gates restock limits. For sellers with sub-2-lb, sub-$100-AOV consumer products turning 3+ times a year, FBA's fee structure pays back. For oversized, custom, or slow-moving inventory, FBM (Fulfillment by Merchant) usually wins on math.

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