FBA is an acronym for Fulfilled by Amazon. When you get into the Amazon FBA program, all the hard work is done by Amazon. How it works: You source products and send them to Amazon. They, in turn, store the products in their warehouses. The products are inventoried then sorted. If an item is damaged in the warehouse, Amazon will pay you the full price. When a buyer orders your product on Amazon, the transaction will be handled by Amazon (the process is automated). Amazon packs the item and ships it to your customer. They also follow up after the product has been delivered to make sure the customer is satisfied.