In 2016 Amazon sellers generated higher revenues than Amazon itself. This clearly highlights Amazon’s potential as a marketplace for retailers. Besides its high media coverage through Amazon, sellers can benefit from the Fulfilment by Amazon, in short FBA. This agreement includes storage, packaging, shipping and order returns. In addition, when choosing the FBA program, sellers can offer Amazon Prime delivery for their products. Products selling through Amazon Prime achieve significantly higher sales figures, since customers enjoy this fast delivery (often within a day) option.
Service fees depend on the products and volume and will be directly deducted from sales revenue. This way sellers bypass the use of their own storage facilities and staff.