FBA (Fulfillment by Amazon)
Definition
Amazon's program where you send inventory to Amazon's warehouses and Amazon stores, picks, packs, ships and handles returns for your orders, in exchange for fees.
Want a deeper explanation?
FBA gives your products Prime eligibility and removes the work of shipping, which usually lifts sales. The cost is a stack of fees that changes every year.
For your books, inventory at FBA is still your inventory and belongs on your balance sheet at cost. Watch for: FBA inventory missing from your balance sheet, which is one of the most common errors we see in Amazon sellers' books.
Example
You send 2,000 units to FBA. Each sale is charged a referral fee and a fulfillment fee, plus monthly storage on what is left in the warehouse.