Here’s a twist you probably didn’t see coming for 2026: Amazon is cutting ALL its Fulfillment by Amazon (FBA) prep and item labeling services in the US. Yep, you read that right—no more Amazon doing your bubble wrapping or labeling jobs. If you've been sending in stuff, expecting Amazon to finish it up, that ship is sailing away.
Starting January 1, 2026, if your shipment lands at FBA without the right prep and label, you’re pretty much out of luck. No more training wheels, do-overs, or quick fixes.
Why should you care? For years, Amazon’s prep and labeling service was the quiet lifesaver. It saved sellers tons of time and even their Amazon rep when things went sideways. But, Amazon is flipping the script now. Sellers are gonna have to handle all prep on their own.
Is Amazon just looking to cut costs? Maybe, but the bigger deal: Amazon thinks sellers should now run their own supply chains like pros, with or without a backup.
You’ve got all of 2025 to figure this out. That’s your practice year before the real game starts. If you don’t prep right, expect shipment headaches, lost stock, random fees, or even Amazon giving you the boot.
In startup speak, when a service goes from all-inclusive to hands-off, it’s called a “maturity moment." 2026 could be the big test for FBA sellers.
TL;DR
- Amazon’s US FBA prep/labeling services end on January 1, 2026
- From now on, sellers must prep and label every shipment themselves
- No refunds for lost/damaged stuff without proper prep
- Many sellers will turn to third-party prep services
- Treat 2025 as rehearsal year—get your act together now
The End of Amazon’s FBA Prep Safety Net
What’s Actually Changing
Let’s make it simple: come 2026, Amazon US won’t prep or label anything for your FBA shipments. They’re out of the game for bubble wrap, poly-bags, tape, barcodes, you name it. No matter if you ship direct to FBA, use Amazon Warehousing & Distribution (AWD), Global Logistics, SEND, or the Supply Chain Portal—it’s all your problem now.
Why is this happening? Amazon says most sellers already do their own prep or use outside help. Amazon claims their own prep services are “inefficient.” Sure, the big sellers figured this out a while ago. But if you’re a rookie or a smaller shop, this could feel like having your seat belt yanked off at 70 mph.
The Policy Details
- FBA shipments created after Jan 1, 2026 must be prepped, packed, and labeled exactly by Amazon’s book.
- If there’s anything missing? You get no payback for lost or damaged inventory—huge blow for sellers handling pricey or large volumes.
- Any shipments created before the cutoff get some extra time. So, if you ship before New Year’s, you’re fine even if your stuff arrives a bit late. Use that leeway.
“We encourage sellers to evaluate their workflows now and ensure products arrive FBA-ready.” — Amazon Seller News, April 2024
Why This Policy Flip Hits Sellers Hard
Prep Goes from Optional to Non-Negotiable
Back in the day, Amazon wanted as many sellers as possible. The easier the entry, the better. Their prep service was a gift—even beginners could grow fast since Amazon took care of the messy stuff like bubble wrap and barcodes. Now, it’s all on you. If you haven’t nailed the basics, your stuff could stall before it even gets near a Prime shopper.
Data Gravity Is Shifting
Amazon says over 70% of US sellers already prep and label upfront, with factories, 3PLs, or their own teams. That leaves about 25–30% who count on Amazon for the nitty-gritty. Cue seller panic. Time to adapt, or you could be stuck outside looking in.
“Amazon’s move highlights the maturing FBA market. Sellers must own every inch of their supply chain now.” — Tom Wang, Amazon FBA expert
If your supply chain—a factory in Shenzhen or a warehouse in Ohio—ain’t dialed in, time for some logistics CrossFit. Don’t expect Amazon to swoop in for missteps, unwrapped boxes, or sloppy barcoding.
Prep and Labeling Hustle
Old Way
Many sellers just sent products from their factories (China, US, wherever), ticked the Amazon prep/label box, and let Amazon handle everything. It cost more, but made life easy and let anyone scale up quick. It was training wheels for logistics.
Third-Party Prep Explosion
As Amazon raised fees and more sellers joined, third-party FBA prep centers started popping up—mainly near big ports like LA, NJ, or Houston. These places stepped in for thousands of sellers. They offered:
- Prep/label shops near entry ports for speed
- Specialist 3PLs who nail Amazon’s picky standards
- Overseas factories (especially in China) adding prep/label as a paid extra
By 2024, big sellers already ditched Amazon for their prep needs. Third parties do it cheaper, better, and often faster. Plan B became Plan A.
“We moved to a third-party prep house in California last year. Not only did we slash costs, but the turnaround is twice as fast.” — Dania Tran, seven-figure Amazon seller
It used to feel risky letting someone else handle your stuff, but that’s the standard now. Prep centers got sharp: sending photos, fast updates, clear promises. Some even add extras—product checks, packing bundles, handling returns.
The Risks
More Than Just Inconvenience
Ignore these prep and labeling changes at your own peril. Here’s what’s at stake if you mess up:
- No refund for lost/damaged goods: Amazon loses your stuff and you didn’t prep/label right? Too bad. You eat that loss. Could be thousands each week if you’re moving a lot of goods.
- Processing Rejection or Delays: Fulfillment centers can block, pause, or toss your inventory if it’s not up to snuff. Think returns, re-route fees, or product stuck in limbo. None of this helps your cash flow.
- Account Health Warnings: Too many compliance slip-ups? Amazon could warn or even restrict your seller account.
- Lost Buy-Box & Sales: If your shipments are late due to compliance fails, sales go to someone else. No mercy here.
Prep/Labeling Tasks On You
Amazon doesn’t make this stuff super simple. Here’s a taste of your chores:
- Slap on all product and box labels, placed just how Amazon says
- Bubble wrap, polybag, tape up stuff by product type (toys, liquids, sharp things, etc.)
- Make sure there’s no random barcodes showing, and don’t mix different SKUs in one box
- Pack for two trips: the big freight haul and the short trip to Amazon’s warehouse
- Paperwork: Upload all the right docs, shipment plans, and tracking for every batch
“Compliance is table stakes, not a nice-to-have. We tell clients: Test your process months before these changes kick in.” — Ryan Grant, FBA logistics consultant
For bigger brands, one mistake isn’t just a small hit—it could mean Amazon freezes your account, or you miss out on big sales days like Prime Day.
2025 Rehearsal: Future-Proof Workflow
2025 Test Kitchen
Think of 2025 as your dress rehearsal year. Figure out what’s broken before Amazon leaves you hanging. Here’s what you should be doing:
What You Need To Practice Now
- Run test shipments: Hand everything over to your factory, 3PL, or prep shop as if Amazon’s prep was gone. Watch for mistakes and cost spikes.
- Try a few providers: Don’t just go with the first prep shop you see. Compare prices, services, and get promise of quality.
- Test your own team: Can they spot FBA mistakes before they get expensive?
- Write instructions: Update your checklists so anyone on your team can handle FBA prep, no guessing.
- Check your barcodes: Make sure they match your product on Amazon—wrong ones cause big headaches.
Secure Your New Prep Provider
Not doing prep in your own place? Find a third-party prep team now, not later. Here’s what to look for:
- Amazon know-how: Ask for proof they’ve handled at least 50 ASINs before
- Transparent costs: Get clear prices, no sneaky fees for basic stuff
- Photo proof: Choose teams who send pics before shipping for peace of mind
- Speed and Accuracy: How fast do they work? Is it reliable, or just quick and sloppy?
- Emergency plans: What if they mess up, or you need a rush order?
“It took us several months to find a prep center that hit both price and reliability targets. Don’t put this off!” — Michael Lin, FBA private labeler
Don’t wait until 2025—by then, the good prep centers will be snatched up by folks who moved faster.
Don’t Drop the Ball
- Amazon US FBA prep/labeling is done for good on Jan 1, 2026
- Get ready, or lose inventory, cash, Prime status, and maybe your Amazon account
- Smart sellers already use outside help—at factories or at US prep shops
- Start practicing and make clean documentation now—waiting is a bad plan
- Compliance is no longer a shortcut. It’s the rule of the road.
FAQ
1. When does Amazon’s FBA prep and labeling stop?
January 1, 2026. After this, all US-bound FBA shipments need to be fully prepped and labeled by you.
2. Which shipments are affected?
All US FBA inbound stuff—including direct seller shipments, AWD, AGL (Global Logistics), SEND, or anything else to a US Fulfillment Center.
3. What if my shipment isn’t done right?
Amazon can reject, delay, or flag you for non-compliance. No payback for any lost or busted goods.
4. Can I use Amazon’s prep outside the US?
For now, yes—it’s only going away in the US FBA program. Other countries may follow, though, so keep an eye out.
5. How do I find a good prep or label partner?
Check online reviews, ask around seller forums, and send small test shipments. Look for teams with real FBA credentials.
6. Is there a grace period?
Only for shipments created before Jan 1, 2026. If you ship right at year-end, the old rules still apply when it lands.
2025 FBA Prep Playbook
- Check Your Workflow: Follow every step of your shipping process. Flag anywhere you depend on Amazon for prep or labels so you can fix it ahead of time.
- Find a Solid Partner: Use a 3PL, prep house, or manufacturer with real Amazon experience. Read reviews, get references, try a test order.
- Practice and Compare: Don’t stall until December. Run test shipments and see how DIY and third-party options measure up for cost, errors, and speed.
- Train Your Crew: Update training docs, write up checklists, and try a dry run. Every hand on deck should know the new rules.
- Check Everything Every Time: Make a shipment checklist—barcode, prep, label, and packing. Triple check every box before it ships.
Get these steps done now and when January 2026 rolls in, things will go smooth—like a Prime drop-off on a Wednesday.
Amazon’s not just cutting a service. They’re telling FBA sellers to step up—fast. Prep and labeling aren’t afterthoughts anymore. They’re all that keeps you in the race. The sellers who win in 2026 will be the ones running their own show, not those waiting on handouts. Take this as your shot to flex your logistics muscles, and you’ll be two steps ahead, panic-free.
Looking to make your operation smarter? Tools that help you handle inventory and compliance can save headaches. Check out how AMC Cloud can help automate Amazon data and make your supply chain best-in-class.
Need more help? Dive into our guide on Amazon FBA compliance pitfalls. See how top sellers build strong supply chains. Want a good 3PL? Don’t miss our review of top 3PLs for Amazon sellers.
