Amazon FBA Australia: Guide for new sellers
Last updated: 21 April 2025
Planning to sign up for Amazon FBA Australia? Here’s everything you need to know before you start.
Key takeaways:
- When selling on Amazon, you can fulfil orders yourself or let Amazon handle it through Fulfilment by Amazon (FBA)
- FBA is ideal for sellers who want to focus on growing their business instead of worrying about packaging and shipping orders
- Amazon Australia has six fulfilment centres: Sydney, Melbourne, Brisbane, Perth, Canberra and Adelaide
- FBA follows a pay-as-you-go business model where the fulfilment and storage costs are charged per order and unit
By 2026, 20% of all online sales in Australia are expected to come from Amazon. Across all categories, Amazon AU’s net sales increased from $1.7 billion to $2.6 billion in 2023, with $250 million coming from Amazon Prime subscriptions.
If you have an online business, not listing your store on Amazon may mean losing potential revenue. More than 60% of sales on Amazon come from third-party sellers, most of whom are SMEs.
When you sell on Amazon, there are two ways to fulfil orders: You can fulfil them yourself, known as Fulfilment by Merchant (FBM), or you can use Fulfilment by Amazon (FBA), where Amazon fulfils the orders on your behalf. According to a report by Jungle Scout, 82% of sellers use Amazon FBA.
But is Amazon FBA a good business model for you? In this guide, we take you through the basics of Amazon FBA Australia, including its costs and shipping process.
Table of Contents
What is Amazon FBA?
Fulfilment by Amazon allows third-party sellers to fulfil their orders automatically with the help of Amazon.You’re essentially outsourcing your warehousing and customer order fulfilment.
The process is pretty straightforward: you or your supplier ship the goods to an Amazon FBA centre. Amazon stores the products and ships them to your customers whenever a new order is placed. Returns and refunds are also managed by Amazon on your behalf.
If you want to focus on growing your online business instead of logistics and order fulfilment, Amazon FBA may be a good option for you.
Anyone with an Amazon Seller Account can enrol for FBA.
With Fulfilment by Amazon (FBA), you can:
- Offer customers faster shipping through Amazon Prime (one-day or two-day shipping)
- Store products in various Amazon FBA warehouses across the world
- Let Amazon handle picking, packing and shipping
- Provide customer service through Amazon
- Get more time to focus on marketing and running your business
Is Fulfilment By Amazon available in Australia?
Yes. Amazon has been offering FBA services to Australian sellers since 2017. Amazon now has six fulfilment centres nationwide – in Melbourne, Sydney, Brisbane, Perth, Canberra and Adelaide.
Your Amazon fulfilment centre choice will depend on your shipping plan and target customers. Storage and shipping costs can vary by city and region.
Benefits of using Amazon FBA instead of fulfilling orders yourself
Here are some of the major benefits of using Amazon FBA:
- Improve the customer experience with free expedited shipping
- It’s easy to scale since you can start small by sending limited inventory to Amazon warehouses and scale as demand grows
- You don’t need to handle storage, refunds or customer service
- Save time to focus on growing your business
- Increase customer trust by displaying the Amazon Prime shipping logo on all your product listings
What does Amazon FBA cost?
FBA fees depend on the type of products you’re selling and how long you store them in Amazon warehouses. It’s a pay-as-you-go business model, where the fulfilment and storage costs are charged per order and per unit.
The main FBA costs include:
- Fulfilment cost: This covers picking and packing products, shipping orders, managing returns and providing customer service
- Monthly inventory storage costs: A monthly fee that Amazon charges for storing your inventory in its warehouses
- Long-term storage costs: If your inventory has been in the Amazon fulfilment centre for more than a year, you’ll be charged this on top of the monthly inventory storage.
- Disposal order costs: A fee is charged when you ask Amazon to dispose of items in your inventory
- Removal order costs: If you request items from your inventory to be shipped back to you, you’ll be charged this fee
Use the FBA revenue calculator to find out the exact fees and your overall revenue from every sale. It’s a good way to determine the profitability of a product.
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Setting up Amazon FBA in Australia
Here are the steps to start using Amazon FBA through your seller account.
1. Set up your FBA account
If you’re new to Amazon, you’ll need to register as an Amazon seller first. Then, log into your seller account and follow the steps below to register for FBA:
- Click on the gear icon in Seller Central and select Account Info
- Click on Manage the Seller Account Information
- Choose the option to register for FBA
Note: Before you apply, make sure to check the requirements for sending inventory to FBA.
2. Create your product listings
Add products to your Amazon account and specify the inventory that should be fulfilled through FBA.
If you already have products in your catalogue that you want to convert to FBA, go to Inventory in the Amazon Seller Central menu and click on Manage All Inventory.
Click the Edit button next to any listed products and select Change to Fulfilled by Amazon.
Whether you’re adding new products or converting existing product listings to FBA, double-check the product dimensions to avoid any inventory issues later.
→ Take a look at our complete guide to selling on Amazon Australia to learn more about creating product listings that stand out from your competitors.
3. Prep your products
Next, you’ll have to prep, label and pack products according to the Amazon FBA guidelines for storage in fulfilment centres. Incorrect labelling may cause Amazon to reject your delivery. Some Chinese suppliers can do this for you.
Proper preparation ensures your products are shipped securely and sent to customers quickly.
→ Take a look at FBA prep and label guidelines.
4. Ship your products to Amazon
If you’re sourcing products from China, you can also ask your supplier to prepare, label and pack products for you and even ship them directly to an Amazon FBA centre in Australia. It’s also possible to split your products and send them to different fulfilment centres across the country. Spreading your product inventory means customers receive their orders faster.
Many product suppliers in China have experience sending inventory to Amazon FBA centres and are familiar with the guidelines.
Amazon recently launched its Amazon SEND service, which allows you to send products from China directly to Amazon fulfilment centres in Australia by air and get your goods moving even faster.
FBA is an excellent choice for sellers who want to focus on growing their business rather than managing logistics and shipping. With its pay-as-you-go business model, it’s a great way to start small and scale. By leveraging FBA, you can improve customer satisfaction with faster shipping, save time on order management and ultimately, grow your business more effectively.
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With a World Account, you can:
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- Hold funds and convert them between your currency accounts or use them to pay suppliers at competitive FX rates
- Withdraw your money at a time and rate that suits you
Ready to start selling in the Australian market?
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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