Amazon will phase out its Fulfillment by Amazon (FBA) prep and labeling services in the U.S. starting Jan. 1, 2026, citing improvements in sellers’ packaging capabilities. The move marks a significant operational shift that will force sellers to adapt their fulfillment workflows or partner with third-party providers.
Sellers Must Take Over Prep Work
The policy change will affect all inventory shipped to Amazon’s U.S. fulfillment network, whether sent directly or via other Amazon supply chain channels. After Jan. 1, products will need to arrive prepped and labeled, with no reimbursement for shipments that arrive unprepared and are damaged or untraceable.
Amazon introduced these services to help sellers protect products in transit, offering tasks such as labeling, bubble-wrapping, stickering, and bagging. The company now says most sellers either handle packaging themselves, work with manufacturing partners, or use outside service providers. This evolution, according to Amazon, enables its fulfillment centers to focus on speed and efficiency rather than product preparation.
For sellers still dependent on Amazon for these services, the company is directing them toward two options: completing prep in-house using Amazon’s published guidelines or outsourcing to a vetted third-party prep provider. Amazon’s “Ships in Product Packaging” program also remains available for eligible products, potentially reducing prep requirements.
Operational Implications and Next Steps
Industry experts say the move could be disruptive for sellers who have not yet internalized prep processes. “Getting ahead of it now will be key to maintaining smooth replenishment and avoiding compliance issues next year,” said Charles Williams, senior manager of marketplace operations at Blue Wheel, in a LinkedIn post. Recommended actions include auditing product catalogs for SKUs that rely on Amazon prep, reworking packaging workflows, and updating FBA shipment processes to ensure compliance before the cutoff.
The change may also have ripple effects for third-party logistics (3PL) providers. With tens of thousands of sellers likely to seek external help, demand for prep and labeling services could rise sharply, mirroring trends seen when Amazon reduced its storage allowances in 2022, which spurred a spike in 3PL partnerships.
Why This Shift Signals More Than Just a Policy Change
While the end of Amazon’s U.S. prep and labeling services reflects seller maturity, it also hints at a broader trend: Amazon is moving to offload non-core, labor-intensive tasks to focus resources on faster throughput and automation within fulfillment centers. For sellers, this is less about compliance and more about long-term competitiveness, those able to adapt now will be better positioned to absorb future changes in Amazon’s fulfillment model, from increased automation to more stringent inbound requirements.