Process of Order Fulfillment on Amazon: Complete Guide for Sellers
Introduction
When a customer clicks “Buy Now” on Amazon, a chain of behind-the-scenes processes begins that determines how quickly and safely their order reaches them. This journey is called order fulfillment-a critical part of selling on Amazon. Done right, it boosts customer satisfaction, reduces returns, and strengthens your seller rating. Done poorly, it can lead to delays, negative reviews, and even policy violations.
Amazon offers multiple fulfillment options-Fulfilled by Amazon (FBA), Fulfilled by Merchant (FBM), and Multi-Channel Fulfillment (MCF)-each with its own benefits and challenges. In this guide, we’ll break down the complete Amazon order fulfillment process, compare FBA vs. FBM, and share expert tips to streamline operations.
Table of contents
- Process of Order Fulfillment on Amazon: Complete Guide for Sellers
- Introduction
- What is Amazon Order Fulfillment?
- Step-by-Step Process of Amazon Order Fulfillment
- FBA vs FBM: Which Fulfillment Model Should You Choose?
- Best Practices for Smooth Order Fulfillment
- Common Challenges in Amazon Fulfillment & How to Solve Them
- FAQ: Amazon Order Fulfillment
- Conclusion
- Related Posts
What is Amazon Order Fulfillment?
Order fulfillment is the end-to-end process of receiving, processing, packing, shipping, and delivering a customer’s order. On Amazon, fulfillment also covers handling returns and refunds.
Amazon sellers can choose between:
- FBA (Fulfilled by Amazon): Amazon stores, packs, ships, and handles customer service for your products.
- FBM (Fulfilled by Merchant): You, the seller, handle storage, packing, shipping, and support.
- MCF (Multi-Channel Fulfillment): Use Amazon’s network to fulfill orders from other platforms like Shopify or eBay.
Step-by-Step Process of Amazon Order Fulfillment
1: Customer Places an Order
- A buyer places an order on Amazon.
- The system confirms product availability and sends order details to either Amazon (FBA) or the seller (FBM).
2: Payment Processing & Verification
- Amazon verifies payment and fraud checks.
- The order is marked “pending” until cleared, then “unshipped” for processing.
3: Inventory Check & Allocation
- FBA: Amazon’s fulfillment centers automatically allocate inventory.
- FBM: Seller checks their own warehouse/stock before confirming order.
4: Picking & Packing
- FBA: Amazon warehouse staff pick, pack, label, and prepare items.
- FBM: Seller picks the product, packs securely, labels with Amazon shipping ID, and ensures compliance with Amazon’s packaging requirements.
5: Shipping & Delivery
- FBA: Amazon selects carrier (Prime, standard shipping, etc.) and handles last-mile delivery.
- FBM: Seller must ship within the promised handling time and upload tracking.
6: Customer Receives the Order
- Order status is updated to “shipped” and then “delivered.”
- Buyers receive confirmation emails & tracking updates.
7: Returns & Refunds
- FBA: Amazon handles returns, inspections, and refunds per policy.
- FBM: Seller manages returns, inspects returned items, and issues refunds.
FBA vs FBM: Which Fulfillment Model Should You Choose?
| Feature | FBA (Fulfilled by Amazon) | FBM (Fulfilled by Merchant) |
|---|---|---|
| Storage | Amazon warehouses | Seller’s own storage |
| Shipping | Amazon handles delivery | Seller arranges shipping |
| Prime Eligibility | Yes | No (unless SFP) |
| Returns | Amazon handles | Seller handles |
| Fees | Higher storage & FBA fees | Lower fees but higher effort |
| Control | Less control, more automation | Full control over operations |
👉 Use FBA if you want scalability, Prime badge access, and reduced operational hassle.
👉 Use FBM if you sell bulky/low-margin products or want full control over customer experience.
Best Practices for Smooth Order Fulfillment
- Maintain Healthy Inventory Levels
- Use Amazon’s Restock Inventory tool to avoid stockouts.
- Focus on Packaging Quality
- Ensure products arrive damage-free.
- Upload Accurate Tracking Details
- Avoid late shipment penalties.
- Respond Quickly to Customer Inquiries
- Fast responses reduce negative reviews.
- Analyze Return Data
- Learn from customer feedback to reduce return rates.
Common Challenges in Amazon Fulfillment & How to Solve Them
- Stockouts & Delays: Use inventory forecasting and reorder alerts.
- High Return Rates: Improve product descriptions and images to set accurate expectations.
- Fulfillment Cost Issues: Compare FBA fees vs FBM shipping costs regularly.
- Negative Feedback from Shipping Delays: Always ship early and use reliable carriers.
FAQ: Amazon Order Fulfillment
FBA means Amazon handles storage, shipping, and customer service. FBM means the seller is responsible for fulfillment.
Most FBA orders are processed within 24 hours and delivered in 1–2 days under Prime.
Yes. Many sellers start with FBM and later switch to FBA as sales grow.
Yes, with FBA Export, Amazon ships eligible products globally.
Maintain inventory, ship on time, and reduce cancellations and late shipments.
Conclusion
Order fulfillment on Amazon is more than just shipping-it’s the backbone of your customer experience and seller performance. Whether you choose FBA or FBM, optimizing each step of the process ensures faster deliveries, fewer returns, and higher ratings.
By understanding Amazon’s fulfillment process and applying best practices, you can streamline operations, reduce costs, and grow sales sustainably.