FBA stands for "Fulfillment By Amazon", and it's a service wherein Sellers must send their products to one (or, most likely, multiple) of Amazon's "FBA" warehouses, which will allow for their items to be available on the marketplace as Prime-eligible items.
Amazon ships some of their own items from these warehouses as well as those sent by third-party Sellers, so every precaution and efficiency is taken with the inventory.
There is a very specific process that Sellers must go through in order to get their goods into FBA distribution centers, and there is a cost involved as well.
Nota bene: It used to be that Sellers had to send their items to FBA to qualify for Prime, but with Amazon's new initiative, that's no longer true.
Amazon is, right now, in the process of expanding Prime from their own distribution centers to merchants' own warehouses.
This will have several great implications for Sellers and buyers alike.
The rest of this whitepaper will cover the pros, cons, and how to's of how to leverage this change to increase profit!