Amazon Is Ending FBA Prep & Labeling Services: What That Means for Sellers + What to Do About It
On January 1, 2026, Amazon will officially discontinue all of its FBA prep and item labeling services in the United States. That includes everything from polybagging, bubble wrapping, bundling, labeling, and boxing to any prep work done via Amazon Warehousing & Distribution (AWD), Amazon Global Logistics (AGL), SEND programs, or the Supply Chain Portal.
Why This Change Is Happening
Amazon says many sellers have already enhanced their packaging capabilities. Many now prep their products internally or via third-party partners, so Amazon claims a reduced need for in-house prep services.
Efficiency and speed are priorities. Removing these optional services helps Amazon simplify operations, reduce handling time, and (they argue) improve fulfillment center throughput.
What Sellers Need to Know
| Aspect | What’s Changing |
|---|---|
| Effective Date | Jan. 1, 2026 Supply Chain Dive+1 |
| Who’s Affected | Any seller using FBA in the U.S., including those using AWD, AGL, SEND, or the Supply Chain Portal. Supply Chain Dive+2AMZ PREP+2 |
| What Prep Must Meet | Every item must arrive at Amazon FCs fully prepped, labeled, packaged, bundled, and compliant. Non-compliant shipments can be rejected, returned, or disposed of. No reimbursement for damage if improperly prepped. |
Risks of Being Unprepared
Amazon may refuse inventory at the fulfillment center or charge fees for non-compliance.
Delay in inventory check-in could disrupt your listing availability, leading to lost sales.
Increased costs if you scramble last minute (rush 3PLs, more manual labor, errors).
Possible damage to account health if you frequently fail compliance standards.
What Sellers Can Do: Actionable Steps
Audit Your SKUs Now
List every ASIN that depends on Amazon’s prior prep (labeling, poly-bagging, bundling, etc.).
Identify which prep methods you’ll need to replicate in-house or through partners.
Decide In-House vs. 3PL
In-house means investing in materials, labor, and training.
3PLs might offer flexibility, scale, and consistency—but become inundated as 2026 approaches.
Compare costs, turnaround times, location, and compliance capabilities.
Set Up Systems for Quality & Tracking
Pack-out photos, label verification, checklist workflows.
Create SOPs for each SKU: how it gets boxed, labeled, bundled.
Train Your Team & Suppliers
Everyone must understand Amazon’s requirements. Missed suffocation warnings, misaligned labels, wrong packaging = trouble.
If your suppliers/manufacturers can ship pre-prepped, use them.
Run Pilot Shipments
Trial some shipments under the new regime. Work out kinks.
Document everything. If a FC rejects an item, you want proof for root-cause and to adjust accordingly.
Lean on “Ships in Product Packaging (SIPP)” / Own Container Programs
If your product qualifies, these help reduce prep overhead. Check eligibility. Supply Chain Dive+1
Prepare Financially for the Transition
Expect upfront costs for materials, labor, or higher 3PL fees.
Factor those into your margins or pricing.
How Berkley Can Help
At Berkley, we’ve been prepping for this change early. We offer robust Amazon FBA prep services—quality-checked, compliant, and scalable. If you don’t want to build this internally, we can partner to absorb the headache: labeling, packaging, bundling, pallet prep, shipment creation—all handled with visibility and accountability.
Closing Thoughts
Amazon stopping its prep services marks a major shift. But it’s not necessarily bad if you plan for it. Early movers will benefit: less disruption, fewer chargebacks, and stronger control over packaging, quality, and cost. The time to act is now—don’t wait until Q4 2025 or you’ll be scrambling.