Amazon FBA Australia is one of the most accessible ways to build an eCommerce business in 2026. This guide covers how FBA works, what it costs, how to choose the right product, and why sourcing from China or Vietnam is the key to making the numbers work.
Amazon Australia is no longer the new kid on the block. With revenue hitting approximately A$7.7 billion in 2024 and Amazon now accounting for nearly 10% of all Australian online shopping, it's become one of the most powerful sales channels available to Aussie entrepreneurs and small business owners.
And yet, compared to the US or UK, the Amazon Australia marketplace is still wide open. Competition is lower, keyword battles are less vicious, and you can recover your initial investment in as little as 6–7 months if you launch smartly. That's a big deal.
At the heart of most successful Amazon Australia businesses is one service: Fulfilment by Amazon (FBA).
This guide covers everything you need to know — how FBA works, what it costs, how to pick the right product, and the one thing most Amazon guides don't talk about enough: how to source your products properly so the margins actually work.
FBA stands for Fulfilment by Amazon. It's a service that lets you send your inventory to Amazon's warehouses, and then Amazon takes care of the rest — storing your products, picking and packing orders, shipping to customers, handling returns, and providing 24/7 customer service.
You focus on finding and sourcing great products. Amazon does the logistics.
The alternative is FBM (Fulfilment by Merchant), where you manage storage and shipping yourself. FBM can make sense for oversized, fragile, or seasonal products, but for most sellers starting out, FBA is the cleaner, more scalable option.
Here's why the timing is good:
The Australian market is genuinely less competitive than the US or UK. Categories that are saturated overseas can still be wide open here. That's the opportunity.
The process is straightforward:
Once your inventory is in Amazon's warehouse, your products become eligible for Amazon Prime and free delivery — which significantly boosts visibility and conversion rates.
FBA fees in Australia are broken into two main categories:
These cover picking, packing, shipping, and customer service. Fees are charged per unit and based on size and weight.
Charged monthly per cubic metre of space your inventory uses. Long-term storage fees apply if stock sits in the warehouse for more than 12 months.
Amazon charges a referral fee on every sale, typically 6–15% of the sale price depending on category. Home & Kitchen is around 8–10%.
You'll want a product margin of at least 30–40% before FBA fees to end up with a healthy net profit. This is why product sourcing is so critical.
Product selection is where most new sellers get stuck. Here's what to look for in a good FBA product: a selling price between A$25–A$80, lightweight and compact dimensions, not dominated by big brands, consistent year-round demand, and room for differentiation.
Good research tools include Amazon's Best Sellers lists, Jungle Scout or Helium 10, and Google Trends. Avoid fragile products, categories Amazon dominates, TGA-regulated items, and anything under A$15 in selling price.
Pro tip: Look at successful products in the US or UK marketplace. If they're selling well there but haven't saturated Australia, that's often a solid indicator of opportunity.
Your cost of goods is your single biggest lever on profitability. The difference between sourcing a product for A$4 vs A$8 per unit can mean the difference between a thriving FBA business and one that barely breaks even.
The two primary sourcing markets for Australian FBA sellers are China and Vietnam.
China remains the world's manufacturing powerhouse. The advantages include an enormous range of product categories, established infrastructure, competitive pricing at volume, and direct access to factories via Alibaba and 1688.com. The challenge is navigating it correctly — verifying suppliers, negotiating well, and ensuring quality.
Vietnam is a compelling alternative for textiles, apparel, furniture, homewares, and bamboo products. Labour costs are lower, quality has improved dramatically, and Vietnam's free trade agreements (including with Australia) can reduce import duties.
If you're new to importing, working with a professional sourcing agent is one of the smartest moves you can make. A good agent will find and vet manufacturers, negotiate pricing and MOQs, manage quality control, and organise logistics back to Australia.
At Epic Sourcing, we work with Australian FBA sellers every week to help them find the right products at the right price from verified manufacturers in China and Vietnam.
Talk to us about FBA product sourcing →
A realistic startup budget: company registration A$500–600, trademark A$330+, initial inventory A$3,000–8,000, product photography A$400–800, Amazon Professional plan A$49.95/month, initial advertising A$500–1,500/month. Total estimated startup: A$5,000–15,000.
Yes — for the right person, with the right product, and the right sourcing strategy. The Australian marketplace is still in a growth phase with lower competition than the US or UK.
Epic Sourcing helps Australian FBA sellers find products and suppliers in China and Vietnam, negotiate better prices, manage quality control, and ship inventory to Amazon's fulfilment centres.
Book a free discovery call with our team →
Amazon launched FBA services in Australia in February 2018. It now operates six fulfilment centres in Melbourne, Sydney, Brisbane, Perth, Canberra and Adelaide.
A realistic startup budget ranges from A$5,000 to A$15,000, covering inventory, company setup, photography, advertising, and Amazon fees.
Amazon recommends having an ABN even if you're just starting out. If your annual turnover exceeds A$75,000, you'll also need to register for GST.
FBA means Amazon handles storage, packing, shipping, and customer service. FBM means you manage fulfilment yourself. Most sellers use FBA for its Prime eligibility and scalability.
Yes. International sellers can use Amazon FBA Australia by shipping inventory to Amazon's Australian fulfilment centres.
Most Australian FBA sellers source from China or Vietnam. A sourcing agent can help you navigate both markets effectively.
Use Jungle Scout or Helium 10, check Amazon's Best Sellers lists, and look for products selling well in the US or UK that haven't yet saturated Australia. Prioritise items priced A$25–A$80 with lightweight dimensions.
With the right product and launch strategy, many Australian sellers recover their initial investment within 6–12 months, faster than the US or UK due to lower competition.
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