Amazon has recently announced that its prep and labeling services for FBA sellers will be discontinued as of January 1, 2026. This means no more FNSKU labeling, poly-bagging, or bubble wrapping services provided by Amazon!
Whether you’re sending shipments via FBA, or even if you use programs like Amazon Warehousing and Distribution (AWD), Amazon Global Logistics (AGL), Amazon SEND, or the Supply Chain Portal, prep is soon becoming strictly the seller’s job.
What is Amazon's Prep and Labeling Services for FBA Sellers?
For years, Amazon has offered prep and labeling services to FBA sellers. For an additional fee, Amazon would apply FNSKU labels, bubble wrap fragile items, poly-bag, and generally ensure that items are prepped to its own standards.
This service has been especially useful for smaller sellers, and sellers who lack a team who is capable of prepping FBA units. It allowed for a more hands-off approach to inventory management. Sellers could ship their existing cartons without needing to prep each individual unit, and trust that Amazon would take care of the nitty gritty work.
How Does Amazon FBA Prep and Labeling Discontinuation Impact Sellers?
Now, Amazon is rolling back its prep and labeling services, with the cut-off date being January 1, 2026. After this date, all inventory must arrive at Amazon’s facilities fully prepped and labeled. If unprepped units are sent to FBA, they risk major delays, shipment halts, rejection, and removal or disposal.
This upcoming change affects everyone using FBA, including inventory routes through programs like AWD, AGL, SEND, and the Supply Chain Portal. Soon, the pressure will be on the seller to label each unit correctly and ensure products are prepared according to FBA standards.
Why is Amazon Discontinuing Its FBA Prep and Labeling Services in 2026?
According to Amazon, most sellers already handle their own prep, whether it’s at the manufacturing facility, via 3PLs, or internally. They claim this shift is about streamlining operations and speeding up fulfillment overall. However, many sellers have expressed they’re unhappy with this shift, as it forces them to further squeeze already thinning margins.
It’s worth noting that Amazon’s Ships in Product Packaging (SIPP) program can offer an alternative to reduce prep requirements, although your eligibility depends on your product type. Read more about the program here.
If you're a client looking for more information, contact your account team! If you’re interested in learning more about how Blue Wheel can aid in your brand efforts in online marketplaces, schedule a consultation with our team, we would love to hear from you.