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Amazon FBA Strategy Guide

1. The Buy Box Algorithm

Amazon's Buy Box goes to sellers with the best combination of price, fulfillment method, and seller metrics. FBA sellers get preference - if you're selling the same product as others, FBA often wins the box even at slightly higher prices.

Strategy: Use FBA for competitive products. Only do FBM (Fulfilled by Merchant) for oversized or slow-moving items.

2. Ungating Categories

Many profitable categories (Grocery, Health, Beauty, Topicals) are "gated" - you need approval to sell.

How to Ungate: Buy 3-10 units from an authorized distributor, upload invoices to Amazon. Start with easier categories like Grocery to build history.

3. Prep Requirements

Every item sent to FBA must be prepped correctly or you get hit with fees and possible suspensions.

Basics: Poly bag anything with loose parts (38+ micron bags), bubble wrap glass/fragile items, suffocation warnings on all bags, FNSKU label covers original barcode.

4. Restock Limits

Amazon limits how much inventory new sellers can send. Your IPI score (Inventory Performance Index) determines your limits.

Boost IPI: Keep sell-through rate high, avoid stranded inventory, maintain 30-60 days of stock (not more).

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