Amazon Is Ending Its Prep Services in 2026: 3PL E-commerce Fulfillment

Amazon is ending its prep services in 2026. Ideal Fulfillment talks about 3PL E-Commerce fulfillment.

On January 1, 2026, Amazon will officially stop offering FBA prep and item labeling services for its U.S. marketplace. That includes inventory flowing into Fulfillment by Amazon (FBA) directly, as well as stock routed through Amazon Warehousing and Distribution (AWD), Amazon Global Logistics (AGL), Amazon SEND, and the Supply Chain Portal when that inventory ends up in FBA.

If you’ve been leaning on Amazon to label, bubble-wrap, polybag, or otherwise prep your products for FBA, this isn’t just a minor policy tweak—it’s a fundamental shift in how your operations need to run.

In this post, we’ll break down what’s changing, why Amazon is doing it, and how e-commerce sellers can pivot smoothly, including how a third-party fulfillment partner like Ideal Fulfillmentcan help you stay compliant and profitable in the post-Amazon-prep era.

Amazon is Ending Its Prep Services in 2026: But When Exactly?

For years, Amazon offered optional, fee-based services to help sellers get inventory FBA-ready.

Those services included:

• Applying FNSKU or item labels
• Bubble wrapping or polybagging items
• Bagging and stickering sets or multi-packs
• Category-specific prep (fragile, liquids, hazmat, etc.)

Starting January 1, 2026:

• All FBA prep services in the U.S. will be discontinued. Amazon is ending its prep services in 2026.
• All item labeling services will be discontinued.
• The change applies to inventory sent directly to FBA and to inventory routed via AWD, AGL, SEND, and Supply Chain Portal that ultimately goes into FBA.

Shipments created before January 1, 2026 may still receive prep under the old rules. Still, anything created after that date must arrive fully prepped and compliant or risk delays, rejection, or additional penalties.

Why Is Amazon Ending Prep Services?

Amazon has framed this move as a natural evolution of its logistics network.

In its notice to sellers, Amazon pointed to:

• Improved seller and manufacturer packaging capabilities
• A mature ecosystem of third-party logistics and prep providers
• A desire to focus its own network on faster, more efficient warehouse operations

When FBA first launched, Amazon’s prep requirements—like item-level bagging, special labeling, and unique barcodes—were very different from traditional retail, and most brands had no idea how to comply. Amazon stepped in with in-house prep to help sellers get up to speed.

Today, that landscape is different. Many brands either:

• Handle prep in-house
• Build prep into their manufacturing process
• Or partner with specialized 3PLs and prep centers

So, from Amazon’s perspective, prep is no longer something they need to offer. Instead, they want inventory arriving “plug-and-play” ready for rapid intake, stocking, and Prime-speed delivery.

For sellers, though, this shift moves full responsibility for compliant prep squarely onto your shoulders.

Who Will Be Hit the Hardest?

Not every seller will feel this change equally. Some brands already do 100% of their own prep and will see little disruption. Others, however, will have to rethink their entire inbound process.

You’re likely to feel the impact most if:

• You relied on Amazon for labeling (especially if you ship unlabeled inventory).
• You have fragile, liquid, or regulation-heavy products that require extra prep.
• You’re scaling rapidly and used Amazon’s prep to avoid hiring warehouse staff.
• You manage inventory across multiple programs (FBA, AWD, AGL, etc.) and counted on Amazon to “fix” prep onsite.

Small and mid-size brands are particularly vulnerable because they often run lean operations and don’t have extra capacity to absorb a new layer of operational work—at least not without careful planning.

The Risks of Ignoring the Change

If you don’t adapt before the January 1, 2026, deadline, you’re not just dealing with inconvenience—you’re putting your Amazon business at risk.

Here’s what can happen if your shipments arrive at FBA without proper prep:

• Shipment rejection – Amazon may simply refuse the shipment.
• Return-to-vendor or disposal costs – At your expense.
• Check-in delays – Your inventory could sit for days or weeks waiting for resolution.
• Lost or unsellable inventory – Items may be marked unsellable if they’re damaged or non-compliant.
• No reimbursement – Amazon has clarified that shipments created after the deadline without proper prep aren’t eligible for reimbursement if damaged or untraceable.

On top of that, poor inventory health can cascade into:

• Stockouts and lost Buy Box
• Dropping organic rank due to low availability
• Negative reviews tied to damaged or poorly packaged items

In other words, cutting corners on prep will be more expensive than ever.

What Changes in Your Day-to-Day Operations? 3PL E-Commerce Fulfillment

Once Amazon’s prep services are gone, every unit you send to FBA needs to be:

• Labeled with the correct FNSKU or barcode
• Bagged, wrapped, or boxed according to Amazon category standards
• Bundled and marked clearly for multi-packs or sets (“Sold as set”, etc.)
• Compliant with all suffocation, expiration date, and regulatory labeling rules.

You’ll need robust processes for:

• Quality control
• Process documentation
• Team training
• Ongoing audits to catch compliance issues before inventory ships

If you’re also using AWD, AGL, SEND, or Supply Chain Portal, keep in mind that even though those programs help with upstream logistics, you’re still responsible for making sure any inventory flowing into FBA is fully prepped under the new rules.

Your Options After Amazon Prep Ends

Broadly speaking, e-commerce sellers have three paths forward.

Option 1: Build In-House Prep Capacity

Pros:

• Full control over processes and quality
• Flexibility to adjust quickly
• Potential cost savings at high volume

Cons:

• Upfront investment in space, staff, and equipment
• Training and maintaining compliance is ongoing work
• Harder to scale during peak seasons

In-house prep typically involves costs per unit (labor, materials, overhead) in the range of a few tenths of a dollar, depending on complexity, plus the sunk cost of racks, tables, printers, scanners, and software.

For some brands, that’s a strategic investment. For others, it becomes a distraction from marketing, product development, and growth.

Option 2: Ask Your Manufacturer or Supplier to Prep

Pros:

• Can be efficient if your supplier is experienced with FBA
• Reduces handling steps and touchpoints
• May bundle costs into your per-unit manufacturing price

Cons:

• Many factories don’t fully understand Amazon’s rules, which can lead to expensive mistakes.
• You need crystal-clear instructions, templates, and QC checks.
• Fixing issues after the fact is harder when they originate overseas.

This route can work, but only if you’re willing to invest in documentation, inspections, and constant communication.

Option 3: Partner With a Third-Party Prep & Fulfillment Center

This is where companies like Ideal Fulfillmentcome in.

Pros:

• Teams that live and breathe Amazon prep requirements
• Established workflows for labeling, polybagging, kitting, and more
• Ability to handle seasonal spikes without hiring temp staff
• Often integrated with other channels (Shopify, TikTok Shop, etc.), so you’re not Amazon-only

Cons:

• Per-unit fees for prep and storage
• Need to choose a trustworthy partner and integrate systems properly

Typical third-party pricing might include:

• $0.20–$0.50 per unit for labeling
• $0.50–$1.00 per unit for polybagging/bubble wrapping
• Higher fees for complex kitting or bundling

For many brands, the combination of compliance expertise, flexible capacity, and predictable per-unit pricing makes a specialized 3PL the most practical choice post-2026.

A Suggested Timeline to Get Ready for 2026

You don’t want to be scrambling on December 31, 2025. Here’s a practical timeline (that you can adapt to your own volume and complexity).

Now – Mid 2025: Assessment & Strategy

• Audit your catalog. Which SKUs currently rely on Amazon prep?
• Map your workflows. From factory or warehouse to FBA check-in—where does prep happen (or not happen)?
• Decide on a direction. Are you leaning toward in-house, supplier-based, or third-party prep (or a hybrid)?

Late 2025: Implementation & Testing

• If going in-house:
  • Set up prep stations, label printers, and scanning processes.
  • Train your team on Amazon’s packaging and prep requirements.
• If using a supplier or 3PL:
  • Finalize contracts and SLAs.
  • Run test shipments and spot-check compliance and speed.

December 2025: Final Shipments Under Old Rules

• Use remaining access to Amazon prep services strategically, but don’t rely on them.
• Have all Q1 2026 inventory prepped under your new system so you hit the ground running.

January 1, 2026, and Beyond: New Normal

• Every shipment is fully prepped before it leaves your control.
• You regularly review your defect rates, check-in times, and any Amazon feedback to tighten processes.

How Ideal Fulfillment Can Help You Navigate the Shift

Ideal Fulfillment is a third-party fulfillment and prep partner built to support modern e-commerce brands across marketplaces and channels. As Amazon steps away from in-house prep, we step in to help you:

1. Take Over Amazon-Compliant Prep

We can manage the full spectrum of FBA prep services, including:

• FNSKU labeling and barcode application
• Polybagging and bubble wrapping
• Kitting and bundling (multi-packs, gift sets, subscriptions)
• Category-specific prep for fragile, liquid, or regulated items
• Clear “set” and “do not separate” labeling where required

Our teams keep up with Amazon’s evolving prep guidelines and policies, so you don’t have to spend hours combing through Seller Central updates.

2. Reduce Risk and Protect Your Account Health

By ensuring every unit we touch is compliant with Amazon’s packaging and prep rules, we help you reduce the risk of:

• Rejected or delayed shipments
• Unsellable inventory due to prep errors
• Negative customer experiences are tied to damage or poor packaging

That translates into steadier inventory flow, more consistent buy box performance, and fewer surprises in your Amazon account.

3. Scale Without Hiring a Warehouse Team

Instead of rushing to lease space, hire staff, and set up equipment before 2026, you can plug into Ideal Fulfillment’s existing infrastructure. As your order volume grows, we scale with you—without you having to build a logistics department from scratch.

This is especially valuable if you’re:

• Adding new SKUs or product categories
• Entering peak seasons like Q4
• Expanding to new marketplaces or sales channels

4. Connect Amazon Prep With the Rest of Your Operations

Ideal Fulfillment doesn’t just prep for Amazon and call it a day.

We can support:

• DTC orders (Shopify, WooCommerce, etc.)
• TikTok Shop and other social commerce platforms
• B2B or wholesale shipments

That way, your inventory strategy isn’t siloed. You can hold stock in one location and route it intelligently—some to FBA, some to DTC fulfillment, some to retail or wholesale partners.

Key Questions to Ask as You Plan for 2026

As you build your transition plan, it helps to ask a few tough questions:

1. If Amazon stopped taking your shipments tomorrow, what would break first?
2. Do you have clear, written prep standards for each SKU?
3. Who is accountable for compliance—someone in-house, a supplier, or a 3PL?
4. Are your current workflows built to handle growth, or are they already at their limit?
5. What’s the true cost (time, money, stress) of doing prep yourself vs. outsourcing?

If you’re not confident in your answers, you’re exactly the kind of seller who should start preparing now, not six weeks before the deadline.

The Bottom Line: Amazon Is Pushing Prep Back to Sellers—Don’t Wait to Respond

Amazon’s decision to end FBA prep and labeling services on January 1, 2026, is part of a broader shift: they want a faster, leaner network where products arrive ready to ship.

For e-commerce sellers, that means:

• You’re fully responsible for prep compliance.
• Mistakes will be more costly, both financially and operationally.
• The brands that act early will lock in the best partners and processes.

You don’t need to navigate this alone.

If you want to:

• Offload Amazon prep to a team that does it every day
• Protect your account health and inventory flow
• Free up your time to focus on product, marketing, and growth

Ideal Fulfillment is ready to help you build a post-Amazon-prep strategy that actually makes your business stronger.

Ready to future-proof your FBA prep?

Start evaluating your options now, while you still have time to test and refine. If you’d like, I can help you outline a transition plan tailored to your product catalog and current workflows—just tell me how many SKUs you have and how you’re prepping today, and we’ll map it out step by step.