This article is a contribution from Brooks Golba, VP, Fulfillment & Logistics Solutions at Qualfon.
Amazon’s August announcement marks a major shift for FBA sellers. Starting January 1, 2026, Amazon will no longer offer prep and item labeling services for U.S. FBA shipments. Every unit arriving at an Amazon fulfillment center must be fully prepped, including labeling, poly-bagging, bundling, and protective packaging, prior to arrival.
If you are not ready when this change takes effect, the result could be shipment rejections, placement delays, non-reimbursable damage, and lost revenue.
Here is your actionable readiness checklist to ensure your operations are prepared when the change goes into effect.
1. Build Your Compliance Plan
- Map each SKU category (e.g., apparel, hazmat, fragile, standard) to Amazon’s current packaging and labeling requirements.
- Assess your in-house capacity: equipment, labor, quality control, and space. One compliance mistake can cost you a month of lost sales.
- If you are using a 3PL, verify their Amazon FBA prep credentials. Do they error-proof the process, handle live unloads, and track compliance metrics?
2. Track Your Induction Times Starting Today
- Begin tracking end-to-end from your warehouse or 3PL to the point when the product is live for sale on Amazon.
- Set a target, such as less than 48 hours, and track any delays. Slower induction times can affect things like your Prime badge and stock performance.
- Tip: A 3PL with strong Amazon relationships can often reduce induction time to 24 hours or less, keeping your products available and protecting sales during peak periods.
3. Evaluate Which SKUs Belong Where
- Not every item benefits from FBA under the new model. Run SKU-level profitability: high velocity items with the Prime badge usually make sense, but bulky or slow-moving products with thin margins may not.
- Consider shifting part of your catalog to Fulfillment by Merchant (FBM) or Seller-Fulfilled Prime (SFP) where FBA no longer makes financial sense.
- Use FBA strategically for products where it provides the most value in terms of speed, Prime visibility, and scalability.
4. Assess Your 3PL Partnership (or Start Looking)
- If you already work with a 3PL, ask whether they have a dedicated FBA prep operation and if they are ready for the January 2026 cutoff.
- Confirm that they can handle increased volume as more brands transition and clarify what liability they assume if Amazon rejects a shipment they prepared.
- Tip: If you are exploring new partners, look for 3PLs with proven Amazon FBA prep experience, access to live unload appointments, multi-node routing to minimize placement fees, and clear reporting on compliance performance.
5. Consider Diversification Beyond Amazon
- Amazon will remain critical, but relying on one channel is risky.
- Explore Walmart Marketplace, TikTok Shop, and Temu to broaden your reach.
- Start by testing a few SKUs and track results. The goal is to reduce dependency on any single channel and maintain flexibility as policies and fees evolve.
6. Start Now
- Audit which SKUs require Amazon prep and build, or select a process or partner to handle them.
- Run pilot shipments, refine workflows, and confirm induction time benchmarks.
Frequently Asked Questions*
Q: When does Amazon stop offering FBA prep services?
A: Amazon will stop all FBA prep and labeling services on January 1, 2026. This applies to all U.S. shipments, including those processed through AWD, AGL, SEND, and the Supply Chain Portal.
Q: What happens if I send improperly prepped items to Amazon after that date?
A: If your inventory arrives without proper prep after January 1, 2026, your shipment may be rejected or returned at your cost. Amazon will not reimburse for damage or non-compliance in those cases.
Q: Is there any grace period for shipments created before January 1, 2026?
A: Yes. Shipments created before January 1, 2026, may still be eligible for Amazon’s prep services even if they arrive after the cutoff.
Q: Can my supplier handle prep instead of using a 3PL?
A: Yes. Suppliers can handle prep, but the risk of error is higher unless they fully understand Amazon’s requirements. Many brands find that working with a specialized 3PL is a safer and more efficient option.
Q: Do Amazon’s standard FBA fees change because of this?
A: Standard FBA fulfillment and storage fees remain the same. However, you will now incur separate prep costs, whether handled in-house or outsourced.
Policy Nuances and Details to Watch*
- Shipment creation versus arrival: Amazon’s cutoff is based on when the shipment is created, not when it arrives. This gives sellers a short window to initiate shipments before the deadline if they still plan to use Amazon’s prep service.
- Program coverage: The change applies to all inventory entering FBA, including through AWD, AGL, SEND, and other Amazon logistics programs.
- In-house prep standards: Although Amazon’s prep service is ending, your internal prep must still meet the same compliance requirements that Amazon previously enforced. Even one missing label or bag can lead to costly delays.
- 3PL capacity constraints: As the cutoff approaches, demand for prep services will rise sharply. Some 3PLs may reach capacity by late 2025. Partner early to secure space, stabilize pricing, and ensure your products continue to flow smoothly into Amazon’s network.
*Always refer to Amazon’s Seller Partner Blog for the most up-to-date information.
About Qualfon
With 40 years of experience in inventory management, kitting, fulfillment, and shipping, and with two-day nationwide delivery to Amazon Fulfillment Centers, Qualfon’s on-demand fulfillment and Amazon FBA prep services help brands adapt to Amazon’s new requirements and optimize their overall logistics strategy.
If you need help preparing for Amazon’s FBA prep changes, contact a Qualfon fulfillment specialist at sales@qualfon.com.
