Succeeding with Logistics

Customers don’t see your spreadsheets or your supplier emails. They see whether the right product showed up, on time, in good shape.

Logistics sounds like the boring part of the business, and some days it is. But it’s also where a lot of profit is won or lost. A single shipment packed wrong can be delayed for weeks. Too little inventory and your sales stall. Too much and storage fees quietly eat your margin.

This pillar focuses on Fulfillment by Amazon (FBA), because it’s one of the most powerful systems available to small sellers. The same principles apply wherever you sell.

Principle 1: Do everything Amazon asks, exactly as asked

Amazon runs one of the most sophisticated logistics networks in the world. It works because millions of shipments follow the same rules. When yours doesn’t, it becomes a problem for them, and that becomes a problem for you.

Before you send your first shipment, read Amazon’s current requirements in Seller Central for:

• Product prep. Since January 1, 2026, Amazon no longer offers prep or item labeling services for U.S. FBA shipments, so this is entirely on you, your supplier, or a prep center. Some items need poly bags, bubble wrap, or sets to be bundled so they aren’t separated. Liquids, sharp items, and fragile products have their own rules.
• Product labels. Each unit needs a scannable barcode, either the manufacturer barcode or an Amazon barcode (FNSKU) that you, your supplier, or your prep center applies. Amazon won’t add it for you.
• Box requirements. Amazon sets limits on carton size and weight, and has rules about box condition and packing materials. For example, loose packing peanuts aren’t allowed.
• Shipment labels. Each box needs the correct shipping label, placed where it can be scanned.
• Pallet requirements if you’re shipping larger quantities.

These rules get updated, so check them each time you ship something new. It’s also smart to share them with your supplier or prep company and ask them to confirm they’ll follow them.

For a real-world look at what goes wrong, read 5 Mistakes to Avoid When Shipping to Amazon.

How an FBA shipment works, step by step

The screens in Seller Central change from time to time, but the basic flow looks like this:

1. Create or convert your listing to FBA. Enter accurate weights and dimensions. Mistakes here can lead to wrong fees.
2. Start a shipment using Amazon’s “Send to Amazon” workflow. Choose the products and quantities you’re sending.
3. Confirm prep and labeling for each product, and decide who will do it: you, your supplier, or a prep service.
4. Pack your boxes and enter box contents, weights, and dimensions.
5. Choose a carrier. Amazon offers partnered carrier options that are often cheaper than shipping on your own.
6. Print and apply the labels to every box.
7. Ship it, and track it until Amazon has received and checked in every unit.

Once your inventory is checked in, Amazon takes over. When an order comes in, it’s picked, packed, and shipped without you lifting a finger. See The 4 Easy Steps to Sell with Fulfillment by Amazon for a walkthrough with videos.

If your products ship from overseas

Many sellers have goods shipped from the factory to a freight forwarder or prep center, which checks, labels, and sends the inventory to Amazon. Others ship directly from the supplier to Amazon. Direct shipping can save money, but only if your supplier truly understands Amazon’s requirements. For your first few orders, many sellers prefer to have the goods inspected somewhere first.

Principle 2: Manage your inventory like it’s cash, because it is

Every unit sitting in a warehouse is money you’ve already spent. The job is to keep enough stock to meet demand, without tying up more cash than you need.

Watch your sales, not your hopes

Base your orders on actual sales history, not on how you hope the next month will go. A simple approach:

1. Find your average daily units sold over the last 30 days (or longer if sales are steady).
2. Add up your total lead time: production time, shipping time, and the time it takes Amazon to receive your inventory.
3. Multiply daily sales by lead time. That’s roughly how many units you’ll sell while you wait for the next order.
4. Add a safety buffer for delays and sales spikes.

When your inventory drops to that number, it’s time to reorder. Amazon’s own restock recommendations in Seller Central can help, and inventory tools can automate the math.

Don’t overstock

It’s tempting to order big to lower your per-unit cost. Be careful. Amazon charges monthly storage fees, which are typically higher in the fourth quarter. It also adds an aged inventory surcharge once units have been in its warehouses for 181 days or more, and that surcharge grows the longer they sit. (Older articles may mention long-term storage fees starting at 271 or 365 days; those thresholds are out of date.) Amazon may also limit how much inventory you can send based on your sales and your capacity limits. Overstocking can turn a profitable product into an unprofitable one.

Remember the driveway test from Pillar 3. It applies here too.

Don’t run out, either

Running out of stock hurts more than just the lost sales while you’re empty. Your product can lose search ranking, and advertising momentum stops. When you’re back in stock, it can take time to recover. Plan ahead, especially before the holiday season, when demand rises and shipping gets slower. Amazon sets cutoff dates for holiday inventory, and missing them can mean missing your best sales weeks. Our post on increasing FBA restock limits has more.

Principle 3: Track the numbers that matter

You don’t need a hundred reports. A handful of numbers, checked regularly, will keep you on track:

• Units in stock and inbound for each product
• Days of supply left at your current sales rate
• Sell-through rate, or how quickly your inventory is selling
• Storage and fulfillment fees per unit
• Return rate and reasons, which often point to product or listing problems
• Inventory health metrics Amazon provides in Seller Central

Set a regular time each week to review them. It takes a few minutes and catches problems before they become expensive.

Principle 4: Have a backup plan

Things go wrong. Ports get backed up, suppliers close for holidays, and a shipment can get stuck at a fulfillment center. A few habits make those moments easier:

• Know your supplier’s holiday schedule, especially around Lunar New Year.
• Keep a small emergency buffer of your best-selling products.
• Consider a backup option for fulfilling orders yourself if FBA stock runs low. Read Self-Fulfilling Orders on Amazon for more.
• Keep good records of every shipment, including photos of packed boxes. They help if you ever need to file a claim.

Also weigh the trade-offs. FBA is a fantastic system, but it isn’t free and it isn’t perfect. Read Drawbacks of Fulfillment by Amazon for a balanced view.

Putting Pillar 5 into practice

• Read Amazon’s current prep, labeling, and packaging requirements for your product.
• Share those requirements with your supplier or prep center in writing.
• Calculate your total lead time from order to Amazon check-in.
• Set a reorder point for each product, and review it every month.
• Schedule a weekly inventory check.
• Mark Amazon’s holiday inventory deadlines on your calendar.

When the products are in place and ready to ship, customers still have to find them. That’s Pillar 6: Marketing to Win.