Amazon FBA Ends Prep Services: Here's Everything You Need to Know

Amazon FBA Ends Prep Services: Here's Everything You Need to Know

Amazon will end its FBA prep services by 2026. Learn why and explore alternatives to prepare for this major change.

Amazon prep services are officially on the chopping block …

Here's everything you need to know.

Amazon has announced that it will be completely phasing out all its product preparation services by 2026. This is a major shift that will impact thousands of sellers who’ve depended on Amazon for product labeling, packaging, and preparation needs before items hit the fulfillment centers.

The policy change encompasses all Amazon preparation services, including:

Now, sellers must scramble to find alternative solutions before the transition deadline arrives.

But it's not all doom and gloom – there are other options out there.

Amazon ends all FBA prep services by 2026

On July 28, 2025, Amazon delivered some earth-shattering news to its seller community through an official announcement letter.

Beginning January 1, 2026, the e-commerce giant will completely discontinue all prep and item labeling services for Fulfillment by Amazon (FBA) shipments in the U.S. marketplace.

Policy announcement and timeline

This announcement marks a major shift in Amazon's approach to inventory handling. In January 2025, Amazon had already begun scaling back services by eliminating optional, fee-based prep services for sharp objects starting in April.

This latest announcement, however, represents the complete phase-out of all remaining Amazon prep options.

But what does this mean? And how will this impact shipments prior to January 1, 2026?

Well,according to the official communication, shipments created before January 1, 2026, will still receive prep and item labeling services, even if the inventory physically arrives after that date.

This gives sellers some much-needed clarity and a defined window to make the necessary adjustments ahead of the transition.

The new policy also includes important changes to Amazon's reimbursement practices: Shipments created after January 1 that arrive at Amazon facilities without proper prep and labeling will no longer be eligible for reimbursement if items are lost or damaged.

This change follows other modifications. For example, on March 1, 2024, Amazon terminated the FBA Inventory Placement Service, replacing it with a new FBA inbound placement service that provides sellers with options to consolidate items to single destinations.

Understanding the upcoming change across FBA, AWD, AGL, SEND

The elimination of prep services affects multiple Amazon logistics programs. This change applies to all inventory sent to U.S. FBA services, including …

Once the change takes effect, all products must be properly prepped and labeled before being sent to Amazon's facilities.

This now places the full responsibility of preparation on sellers or their chosen third-party service providers.

According to Amazon:
"We initially introduced prep services to help protect products during the shipping process. Since then, we've seen a significant improvement in seller packaging capabilities and a reduced need for our prep services."

Amazon emphasized that this change aims "to improve operational efficiency that ensures quicker delivery times for customers."

This suggests that streamlining its internal processes by eliminating prep services will ultimately enhance the customer experience by accelerating fulfillment times.

Sellers must now consider how to handle various preparation requirements including bubble-wrapping, bagging, taping, labeling, and other specialized preparations that Amazon previously offered as a service.

Navigating Alternatives

With Amazon sunsetting its prep services in 2026, many sellers are left wondering: "What now?"

The good news? There are options – and some of them are even better.

DIY prep and labeling

One option is that sellers can take the preparation and labeling in-house. This approach gives businesses complete control over the inventory preparation process.

For proper DIY labeling, sellers need:

Key requirements for compliant labels include:

This option requires investing in equipment and dedicating staff time to preparation tasks, which may not be ideal for smaller sellers. Still, for any business wanting control over the prep and labeling process, there's no time like the present!

Using third-party logistics providers

Third-party logistics (3PL) providers are stepping up to fill the gap. These aren't just warehouses; they're logistics command centers built to handle evolving demands.

Top-tier 3PLs are already equipped to meet Amazon's requirements, ensuring every shipment is labeled correctly and fully prepped – no delays, no penalties.

Final thoughts

The complete phase-out across all Amazon logistics programs signals a shift in how the e-commerce giant manages its fulfillment ecosystem.

Amazon believes this change will streamline operations and benefit customers through faster delivery times. However, many sellers have expressed concerns about maintaining efficient operations without these services.

Sellers must evaluate their options and choose the best alternative for them. Those who adapt quickly may discover unexpected benefits through improved packaging control, potential cost savings, and enhanced brand visibility.