The era of “Let Amazon handle it” is over. Amazon has officially announced that, effective January 1, 2026, it will permanently discontinue all in-house FBA Prep and Labeling Services for US sellers.
This affects every inbound channel: direct FBA shipments, Amazon Warehousing & Distribution (AWD), and Amazon Global Logistics (AGL).
Contents
What Is Ending?
Amazon will no longer perform the following tasks, even for a fee:
- Applying FNSKU barcodes.
- Poly-bagging products.
- Bubble-wrapping fragile items.
- Taping or opaque bagging.
The “No Reimbursement” Trap
This is the most critical detail buried in the policy. If a shipment created after Jan 1, 2026, arrives without proper prep, Amazon reserves the right to reject it or dispose of it. More importantly, these units are ineligible for reimbursement if lost or damaged. You are essentially shipping “at your own risk” if you are non-compliant.
Why Is Amazon Doing This?
Throughput. Amazon’s fulfillment centers are moving toward full automation with robotics. Human “prep” stations create bottlenecks. Amazon has decided that its warehouses are for fulfillment (moving boxes out), not preparation (fixing boxes coming in). They are pushing the labor cost and complexity upstream to you.
Your Transition Playbook: Move Labor Upstream
You have until December 31, 2025, to rebuild your inbound workflow.
- The Manufacturer Pivot (Best Margins)
The most profitable move is to eliminate the need for “prep” entirely.
- Action: Redesign your product packaging to include the FNSKU barcode printed directly on the box.
- Result: You pay $0.00 for labeling. You eliminate the risk of stickers falling off. You bypass the 3PL cost.
- The 3PL Partner (Best Flexibility)
If your factory can’t do it, you need a US-based prep partner.
- Action: Secure a 3PL contract now. Do not wait until Q4.
- Focus: Look for “FBA Prep” specialists who understand Amazon’s specific poly-bag warnings and suffocation labels.
- The Seller Central Audit
- Action: Run your “FBA Operational Report.” Filter by “Who Preps?”.
- Fix: Any SKU listed as “Amazon” must be switched to “Merchant” before you create your first shipment of 2026.
Where Big Internet Ecommerce (BIE) Fits In
We build supply chains that withstand policy shocks.
- Prep Dependency Audit: We identify every SKU in your catalog that is currently dependent on Amazon’s labor.
- Factory SOP Design: We create the visual standard operating procedures (SOPs) for your suppliers to ensure every unit leaves China (or Vietnam/USA) fully Amazon-compliant.
- Unit Economics Update: We remodel your margins to reflect the shift from Amazon fees to 3PL/Factory costs, often finding you hidden profit in the process.
The warehouse is closing. Let’s get your supply chain ready.
Book a call to get your migration roadmap today.
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