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FBA Service Agreement

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FBA SERVICE AGREEMENT

This FBA Service Agreement (the "Agreement") is entered into as of by and between Client Name: , a business organized as , with principal address: (\"Client\"), and Service Provider: , a business organized as , with principal address: (\"Provider\").

RECITALS

WHEREAS, Client is engaged in the business of selling goods through fulfillment channels that include Fulfillment by Amazon (FBA) and requires third-party services to prepare, label, and ship inventory to FBA facilities in compliance with applicable FBA requirements; and

WHEREAS, Provider offers fulfillment preparation, inspection, labeling, bundling, storage coordination, and inbound shipping services specifically tailored to FBA requirements and has represented that it has the personnel, facilities, equipment, and expertise necessary to perform such services; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to Provider's performance of the services described herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties agree as follows:

1. DEFINITIONS

1.1 "Services" means the FBA preparation, labeling, inspection, packaging, boxing, kitting, bundling, shipment coordination, and related activities to be performed by Provider as described in Section 2. "FBA Requirements" means the then-current written inbound shipment and packaging requirements of the applicable fulfillment provider to which Client's inventory will be tendered. "Inventory" means Client product units delivered to Provider for performance of the Services.

2. SCOPE OF SERVICES

2.1 Provider shall perform the Services described in the Service Specifications below and in any Statement of Work executed by the parties. Provider shall provide the Services in a commercially reasonable manner consistent with industry practices for FBA preparation and inbound shipments.

2.2 Provider shall perform Services in compliance with FBA Requirements. Provider shall use reasonable care to ensure Inventory is labeled, packaged, and prepared consistent with Client's instructions and with applicable laws and safety standards.

3. TERM

3.1 This Agreement commences on the Effective Date set forth above and continues for an initial term of months, unless earlier terminated in accordance with Section 12. Thereafter the Agreement shall automatically renew for successive month periods unless either party delivers written notice of non-renewal at least days prior to the end of the then-current term.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay Provider the fees set forth in the Fee Schedule. Provider may invoice Client for Services rendered and for reasonable out-of-pocket expenses incurred in connection with Services. All fees are exclusive of taxes, duties, and charges which shall be Client's responsibility.

4.2 Payment Terms. Client shall pay undisputed invoices within days of receipt. If Client disputes any portion of an invoice, Client must notify Provider in writing no later than days after receipt and pay any undisputed portion in accordance with this Section. Overdue amounts shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law.

5. CLIENT OBLIGATIONS

5.1 Client shall provide clear labeling, SKUs, ASINs, product information, and shipment plans as required for FBA. Client shall ensure Inventory is legally owned by Client or Client's authorized party and that Inventory does not infringe third-party intellectual property or violate applicable laws.

6. PROVIDER OBLIGATIONS

6.1 Provider shall perform Services using trained personnel and maintain reasonable processes and controls to comply with FBA Requirements. Provider shall maintain records sufficient to document Services rendered and shall provide reasonable access to such records upon request for audit or dispute resolution.

7. INVENTORY, RISK OF LOSS, AND INSURANCE

7.1 Title and Risk of Loss. Title to Inventory shall remain with Client. Risk of loss or damage to Inventory in Provider's possession shall transfer to Provider upon Provider's receipt, and Provider shall be responsible for loss or damage except to the extent caused by Client's failure to disclose material defects or to follow Provider's directions.

7.2 Insurance. Provider shall maintain commercial general liability insurance and commercial property insurance in amounts customary for the industry and shall provide certificates of insurance upon reasonable request.

8. CONFIDENTIALITY

8.1 Each party agrees to hold confidential and not disclose to any third party any non-public information disclosed by the other party that is designated as confidential or that reasonably should be understood to be confidential given its nature ("Confidential Information"). Confidential Information does not include information that is or becomes public without breach by the receiving party, is rightfully received from a third party without restriction, or is independently developed by the receiving party.

8.2 The receiving party may disclose Confidential Information to its employees, contractors, and advisors who have a need to know and who are bound by confidentiality obligations no less protective than those set forth herein.

9. INTELLECTUAL PROPERTY

9.1 All trademarks, trade names, copyrights, and other intellectual property provided by a party shall remain the sole property of that party. Client grants Provider a limited, non-exclusive license to use Client trademarks and product information solely to perform the Services.

10. REPRESENTATIONS AND WARRANTIES

10.1 Each party represents and warrants that it has the full corporate power and authority to enter into this Agreement and to perform its obligations hereunder and that the execution and performance will not violate any agreement or law binding it.

11. INDEMNIFICATION

11.1 Provider shall indemnify, defend and hold harmless Client from and against any third-party claims arising from Provider's gross negligence or willful misconduct in performing the Services. Client shall indemnify, defend and hold harmless Provider from and against any third-party claims arising from Client's breach of representation, infringement of third-party intellectual property rights, or failure to comply with applicable law.

12. LIMITATION OF LIABILITY

12.1 EXCEPT FOR A PARTY'S INDEMNIFICATION OBLIGATIONS, BREACH OF CONFIDENTIALITY, OR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER BASED ON CONTRACT, TORT OR OTHERWISE.

13. TERMINATION

13.1 Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach. Either party may terminate immediately if the other party becomes insolvent or subject to bankruptcy proceedings.

14. EFFECTS OF TERMINATION

14.1 Upon termination, Provider shall, at Client's direction, return or make available for pickup all Inventory in Provider's possession. Client shall pay all unpaid fees and expenses incurred through the effective date of termination. Sections dealing with payment, confidentiality, indemnity, limitation of liability, and intellectual property shall survive termination.

15. NOTICES

15.1 All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below (or to such other address as a party may designate by notice).

16. AMENDMENTS; WAIVER; COUNTERPARTS

16.1 No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties. No failure or delay by either party in exercising any right shall operate as a waiver of that right. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

17. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

17.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to conflicts of law principles.

17.2 Entire Agreement. This Agreement, together with any Statements of Work or attachments executed by the parties, constitutes the entire agreement between the parties with respect to the Services and supersedes all prior agreements, understandings, and communications, written or oral, relating thereto.

17.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that carries out the original intent.

18. MISCELLANEOUS

18.1 Independent Contractors. The parties are independent contractors. Nothing in this Agreement creates a partnership, joint venture, agency, or employment relationship between the parties.

18.2 Subcontracting. Provider may engage subcontractors to perform Services so long as Provider remains responsible for their performance and compliance with this Agreement.

Client Printed Name:

By:

Date:

Provider Printed Name:

By:

Date:

Enter text✕

What the FBA Service Agreement Is and Who It Covers

An FBA Service Agreement is a contract between an e-commerce seller and a third-party service provider that defines how inventory is prepared, shipped, and managed for Amazon Fulfillment by Amazon (FBA) processes. It allocates responsibilities for labeling, packaging, inbound shipment coordination, returns handling, inventory reconciliation, and compliance with Amazon policies. The agreement typically sets service levels, pricing, indemnities, insurance requirements, performance metrics, data-sharing permissions, and termination rights. For U.S. parties it also clarifies tax reporting obligations and identifies which state law governs disputes and contract interpretation.

Why a Clear FBA Service Agreement Matters

A written FBA Service Agreement reduces disputes by assigning responsibilities, clarifying fees and penalties, and ensuring Amazon policy compliance. It protects seller accounts, limits liability for inventory loss, and documents service expectations and reporting requirements.

Why a Clear FBA Service Agreement Matters

Who Commonly Uses an FBA Service Agreement

Typical parties include independent sellers, logistics providers, and agencies managing Amazon fulfillment on behalf of brands.

  • Independent online sellers who outsource inbound preparation, labeling, or shipment management to a 3PL or fulfillment coordinator.
  • Third-party logistics providers (3PLs) and prep centers that perform physical handling, quality checks, and shipment creation into Amazon FBA.
  • Agencies or consultants who manage listings, reimbursements, returns, and compliance tasks tied to FBA operations.

Identifying the correct party types and roles at the start reduces later signature disputes and performance gaps.

Essential Clauses to Include in an FBA Service Agreement

A professional agreement organizes responsibilities and measurable outcomes so both seller and provider understand expectations and remedies.

Scope of Services

Define specific tasks (labeling, polybagging, shipment creation, returns processing), excluded services, and any onboarding deliverables with measurable acceptance criteria.

Inventory Handling

Describe receiving procedures, inspection tolerances, shortage/overage reporting timelines, and reconciliations for inbound and returns inventory.

Shipping and Returns

State who arranges carrier bookings, how Amazon shipment templates are used, return routing, inspection on returns, and restocking policies.

Fees and Payment

List fixed and variable fees, invoicing cadence, payment terms, late fees, pass-through charges, and how dispute adjustments are handled.

Compliance and Reporting

Require adherence to Amazon Seller and FBA policies, data-sharing formats, inventory reporting cadence, and support for audits and claims.

Liability and Termination

Include indemnities, insurance minimums, limits of liability, cure periods, termination for convenience and cause, and post-termination inventory handling.

Key Information Fields to Collect

Party Names: Full legal names
Tax IDs: EIN or SSN
Amazon Seller ID: Seller Central ID
Service Fees: Fee schedule
Insurance: Carrier and limits
Contact Info: Primary contact details

Step-by-Step: How to Complete and Execute an FBA Service Agreement

Follow these steps to prepare, review, and finalize the agreement for use with Amazon FBA operations.

  • 01
    Collect Data: Gather Seller ID, inventory lists, fees, and insurance info.
  • 02
    Draft Agreement: Populate template clauses and attach service schedules.
  • 03
    Review and Negotiate: Confirm SLAs, indemnities, and payment terms with counsel if needed.
  • 04
    Sign and Distribute: Execute signatures, distribute final copies, and upload to contract repository.

Configuring an Online Workflow for the Agreement

Set up an e-sign and routing workflow that matches signer order, authentication strength, and document retention requirements.

Platform Choose eSign platform and storage location.
Signer Order Sequential or parallel routing configuration.
Authentication Email, SMS, or stronger methods such as KBA or SSO.
Conditional Fields Show fee sections only for applicable SKUs.
Audit Trail Enable timestamps, IP logs, and certificate generation.

Where to Send Signed Agreements and Supporting Materials

Signed agreements and key attachments should be routed to contract, finance, and operational systems for fulfilment readiness.

  • Contract Repository: Store final executed PDF for legal reference.
  • Accounting: Send fee schedules and billing contact for invoicing.
  • Operations: Provide onboarding materials and SKU instructions to 3PL.
  • Amazon Records: Retain paperwork necessary for Amazon performance disputes.

Technical and Security Requirements for Digital Execution

Ensure the chosen e-sign platform supports required authentication, audit trails, and integrations with your systems.

  • File Formats: PDF and DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security: TLS 1.2/1.3 and AES-256

Confirm the platform can produce a tamper-evident PDF with an audit trail and meet any industry-specific compliance such as HIPAA where applicable.

Typical Timelines, Deadlines, and Notice Periods to Include

Define concrete timeframes for delivery, reconciliation, invoicing, and termination to reduce misunderstandings.

Effective Date:

Date contract obligations begin; use MM/DD/YYYY.

Inbound Delivery Window:

Specify lead times and acceptance windows in business days.

Invoice Due Date:

Net 30 or alternative payment terms for provider invoices.

Reconciliation Period:

30–90 days to dispute inventory or charge discrepancies.

Termination Notice:

30–90 days depending on termination for convenience or cause.

Common Mistakes to Avoid When Preparing the Agreement

  • Using vague fee language that leaves pricing tiers or pass-through charges undefined, leading to billing disputes.
  • Failing to require Amazon policy compliance and audit support, which can imperil a seller’s account during investigations.
  • Neglecting inventory reconciliation procedures and timelines, producing unreconciled losses and chargeback disputes.
  • Omitting insurance or indemnity clauses that address product loss, damage, or third-party claims arising during fulfillment.

Penalties and Legal Risks from an Incorrect or Missing Agreement

Financial Exposure: Unexpected chargebacks
Account Suspensions: Amazon policy penalties
Tax Errors: Incorrect reporting
Inventory Liability: Loss or shrinkage risk
Breach Damages: Contractual remedies
Regulatory Risk: Consumer or product compliance

eSignature Pricing at a Glance for FBA Agreement Execution

Compare baseline pricing and key capabilities across common eSignature vendors; signNow is listed first per platform comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About FBA Service Agreements

Answers to common legal, execution, and operational questions when preparing or signing an FBA Service Agreement.


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