Urgent Update! Amazon to End Its Prep Services In US By Jan 2026

Amazon, in a recent update, announced its intent to bring down its FBA Prep Services in the United States, which effective on January 1, 2026. Which means that sellers will have to take care of the packaging and labelling of their orders all by themselves. This decision covers all the Amazon preparation services like: 

• Fulfillment by Amazon (FBA)
• Amazon Warehouse Deals (AWD)
• Amazon Global Logistics (AGL)
• And SEND programs

The decision puts the Amazon sellers across the US in a difficult situation where they have the added burden of packing the order properly so that the same is not lost or damaged in transit. 

Amazon FBA Prep and Labelling Services 

The service was introduced by Amazon to safeguard the products from damage during transportation. Under the program, Amazon used to prepare the products for transit with high-grade packaging with a per-unit fee that included labeling, bubble-wrap, stickering, and bagging. Once the service was enabled, the seller could either prep their parcels on their own or get them done from the e-commerce platform. 

Today, the sellers can get their orders prepped well even without any assistance from Amazon, given that they look for a customized unboxing experience and they are vigilant of the safety of products. Also, many sellers these days have hired a third-party logistics provider to take care of their fulfillment needs, which, as part of their contract, prep the products for shipment. So the scope for Amazon to do the same has shrunk to a great extent, leading to the shutdown.  Its shutdown will end the following services from Amazon: 

• FNSKU barcode labeling 
• Poly bagging for Textile
• Bubble wrapping for fragile goods
• Secure taping for loose Parts 
• Opaque bagging for products that require privacy
• Suffocation warning labels for hazardous packaging 
• Bundle creation
• Set preparation for orders with multiple pieces
• Item inspection
• Sticker removal to eliminate old barcodes or pricing

How Does it Affect Sellers? 

Sellers are definitely going to be affected by this decision of the Amazon marketplace. Here’s how: 

1. Careful Examination of Goods

Sellers need to carefully examine the goods that need to be shipped. The packaging, labelling, and other aspects need to match the standards. If the same is not assured, sellers might have to face consequences like damaged goods or loss of the parcel. 

2. Delivery Delay

Sellers only have two options: either to go for in-house labelling and prepping or to hire a third-party service provider. While the in-house one seems like a cost-saving option, it might not be as efficient. It will charge the seller which might delay the delivery further. 

3. Hiring Resources

As all the workload cannot be handled by the seller himself, they would definitely have to hire resources to help with the additional work. This is especially the case with sellers who have their own warehouse. Sellers should start the process as soon as possible to avoid mistakes when Amazon is completely out of the scene. 

4. Additional Charges

With additional resources, sellers will have to incur extra costs. Not just for resources, they will have to pay for their training errors and delays. Also, the time consumed on all this will add up to the cost. These charges are going to affect the product cost in turn. 

Get a Detailed Guide on How to sell on Amazon FBA.

How Sellers Can Prepare for FBA Prep Service Changes?

This announcement calls for a lot of changes, but there has to be a plan for it. Here’s how you can do it: 

1. Prepare the Team

Since the sales channel is not going to provide the prep services, sellers need to train their staff or hire a competent one that can match the standards provided by Amazon. These standards are very uniform and are aimed to streamline the fulfillment procedure. In this case, sellers need to make sure that your team is capable of doing everything flawlessly. 

2. 3PL Partnership 

This is the only way to go other than in-house prepping and labelling. Sellers can choose their preferred partner and integrate the same with their business using a 3PL integration software. They have the manpower who can take care of efficient prepping of the order such that it reaches its consumer safely. 

3. Clear Communication 

Amazon marketplace sellers need to clearly communicate their requirements and also analyse the 3PL partner’s competency to fulfill the same beforehand. With this, both the seller and the service provider will be on the same page to work effectively. Also, 3PL service providers might help sellers with the compliance of Amazon’s rules. 

4. Inventory Management

Now, as a seller you might think that you have time but let’s be real you don't. There are just four months until 2025 gets over. Within this time span, sellers need to figure out their way to fill this prep gap. For that, they need to manage their inventory such that it is half prepared for shipment and workflow is streamlined. 

5. Amazon’s Service Provider Network

Amazon's Service Provider Network (SPN) is a specific feature for FBA Prep Providers. These are verified services that serves the sellers with the following requirements:

• Prep precision and adherence
• Time and capacity turnaround
• Cost and geographic reach

This service supports various packaging and labelling like:

• Poly-bagging and labeling
• Quality assurance
• Bundling and kitting
• Options for freight forwarding and storage

6. Shipping in Product Packaging 

Some sellers provide their goods with a very sturdy packaging that can survive the entire delivery process without any damage. Such goods can be shipped under Ships in Product Packaging (SIPP) program. Now, sellers need to see if their products can actually get through the eligibility criteria and then go ahead and sell without much worries. Hence, the sellers wont need extra packaging material and cut the cost of 3PL or employees.

Get Ready for Change!

Sellers need to prepare themselves for the change coming up. It is not going to be easy for sellers to incorporate this but the implementation still has to be quick. It is just a few months, either a 3PL service provider or SIPP needs to be there as an alternative into your business. 3PL integration software can actually lift the way you process orders and fulfill them. As the same can automate the processing and take care of inventory management as well. Any which ways, prepare yourself and your products efficiently before it is January 1, 2026. 

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