Amazon to End FBA Prep & Labeling Services in U.S. Starting January 1, 2026
Published August 1, 2025 • By AMZ Sellers Attorney®
Amazon has confirmed it will discontinue all FBA prep and item labeling services in the U.S. effective January 1, 2026. This includes services for direct Fulfillment by Amazon shipments as well as inventory routed via Amazon Warehousing & Distribution (AWD), Amazon Global Logistics (AGL), Amazon SEND, and the Supply Chain Portal :contentReference[oaicite:0]{index=0}.
Why Amazon is Making This Change
The company explained that over time, sellers and their manufacturing partners have significantly improved their packaging capabilities, reducing reliance on Amazon’s prep services. Discontinuing these services allows Amazon to streamline inbound operations and improve fulfillment efficiency :contentReference[oaicite:1]{index=1}.
What Sellers Must Do After January 1, 2026
- Ensure all products arrive at Amazon facilities fully prepped and labeled according to FBA standards. Amazon will not prep or label inventory after that date.
- Be aware that shipments created after January 1 that arrive without proper prep or labeling will not be eligible for reimbursement if damaged or lost :contentReference[oaicite:2]{index=2}.
- Shipments created before the deadline are grandfathered in and Amazon will still prep those units even if they arrive in early 2026.
Who This Impacts
This policy affects:
- Sellers sending inventory directly to FBA.
- Products routed through AWD, AGL, Amazon SEND, or Supply Chain Portal integrations.
Especially hard hit are small- and mid-sized sellers without in-house prep operations. Sellers who previously let Amazon handle barcode labeling, bubble‑wrapping, poly-bagging, bundling or kitting must now do it themselves or use a prep center. The industry reaction has been one of concern and urgency :contentReference[oaicite:3]{index=3}.
Risks and Consequences
- No prep = no reimbursement: Amazon will deny claims for unreimbursed lost or damaged units if they were not properly prepped.
- Potential for inventory delays or rejection: Non-compliant shipments may be refused, returned, or marked incorrectly.
- Operational bottlenecks: Sellers that delay implementing compliant workflows may face shipping disruptions during Q1 2026.
Strategies to Adapt
Sellers should act now to prevent disruptions and ensure compliance. Recommended actions include:
- Audit existing workflows: Identify SKUs that relied on Amazon prep. Map out who handled labeling, kitting, and packaging.
- DIY prep setup: Invest in thermal printers, label rolls, poly bags, bubble wrap, and train your team to follow FBA packing requirements.
- Outsource to vetted third-party prep centers: Amazon’s Service Provider Network offers pre‑approved vendors experienced with FBA compliance :contentReference[oaicite:4]{index=4}.
- Consider Ships in Product Packaging (SIPP): If your original packaging meets Amazon’s durability standards, you may reduce or eliminate prep needs and qualify for fee discounts :contentReference[oaicite:5]{index=5}.
- Use shipments created by Dec 31, 2025: To use Amazon’s last batch of prep services, send inventory with shipment creation before the policy takes effect.
Long-Term Opportunities
This shift presents both challenges and opportunities:
- Robust prep capabilities can become a competitive advantage for sellers who control and oversee their own packaging process.
- 3PL and prep centers will see surging demand. Sellers that establish early partnerships may secure better pricing and priority handling during peak season.
- Sellers may enhance brand quality control by integrating prep at the point of manufacturing or through tightly controlled in-house systems.
Sample Checklist for Sellers
| Action | Target Date | Purpose |
|---|---|---|
| Audit current workflows | Now & Q3–Q4 2025 | Identify which SKUs depend on Amazon prep |
| Implement DIY labeling or sourcing supplies | By Dec 1, 2025 | Allow training and testing of process |
| Contract with 3PL prep center | By Nov 2025 | Ensure ramp-up before deadline |
| Shift shipment creation before cutoff | Before Dec 31, 2025 | Use final Amazon-prepped shipments |
| Validate compliance & test early shipments | January 2026 | Avoid FBA delays or rejections |
Conclusion
Amazon’s decision to end prep and labeling services by January 1, 2026, marks a major operational change. While many sellers may view it as disruptive, it also offers opportunities to build better control, reduce reliance on Amazon, and partner with specialized providers. Whether you choose DIY prep or outsource, planning ahead is critical. Sellers who move early will avoid pitfalls and may even gain from greater efficiency and brand reliability.
Need help navigating FBA compliance or setting up a prep workflow? The team at AMZ Sellers Attorney® and our trade and logistics counsel are available to advise strategic next steps. Reach out to discuss how to stay ahead of this transition now.
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