Amazon prep services are officially on the chopping block …
Here's everything you need to know.
Amazon has announced that it will be completely phasing out all its product preparation services by 2026.This is a major shift that will impact thousands of sellers who’ve depended on Amazon for product labeling, packaging, and preparation needs before items hit the fulfillment centers.
The policy change encompasses all Amazon preparation services, including:
- Fulfillment by Amazon (FBA)
- Amazon Warehouse Deals (AWD)
- Amazon Global Logistics (AGL)
- And SEND programs
Now, sellers must scramble to find alternative solutions before the transition deadline arrives.
But it's not all doom and gloom – there are other options out there.
Before we dive into those, let's start at the beginning: by breaking down the timeline of this major shift and unpacking why Amazon is making the change.
Sound good? Okay, let's get right to it ...
Amazon ends all FBA prep services by 2026
On July 28, 2025, Amazon delivered some earth-shattering news to its seller community through an official announcement letter.
Beginning January 1, 2026, the e-commerce giant will completely discontinue all prep and item labeling services for Fulfillment by Amazon (FBA) shipments in the U.S. marketplace.
Policy announcement and timeline
This announcement marks a major shift in Amazon's approach to inventory handling. In January 2025, Amazon had already begun scaling back services by eliminating optional, fee-based prep services for sharp objects starting in April.
This latest announcement, however, represents the complete phase-out of all remaining Amazon prep options.
But what does this mean? And how will this impact shipments prior to January 1, 2026?
Well, according to the official communication, shipments created before January 1, 2026, will still receive prep and item labeling services, even if the inventory physically arrives after that date.
This gives sellers some much-needed clarity and a defined window to make the necessary adjustments ahead of the transition.
But wait right there … there's a little more. The new policy also includes important changes to Amazon's reimbursement practices: Shipments created after January 1 that arrive at Amazon facilities without proper prep and labeling will no longer be eligible for reimbursement if items are lost or damaged.
Though surprising, this isn't the first change or modification made to Amazon's service offerings. In fact, this change follows the other changes Amazon has made. As an example, on March 1, 2024, Amazon terminated the FBA Inventory Placement Service terms and conditions, replacing it with a new FBA inbound placement service that provides sellers with options to consolidate items to single destinations.
Understanding the upcoming change across FBA, AWD, AGL, SEND
The elimination of prep services affects multiple Amazon logistics programs. As outlined in their seller notification, this change applies to all inventory sent to U.S. FBA services, including …
- Direct shipments to Fulfillment by Amazon (FBA)
- Inventory from Amazon Warehousing and Distribution (AWD)
- Items shipped through Amazon Global Logistics (AGL)
- Products sent via Amazon SEND
- Inventory processed through the Supply Chain Portal that goes through FBA
Even more so, the announcement makes it very clear that once the change takes effect, all products must be properly prepped and labeled before being sent to Amazon's facilities.
The good, bad, and ugly of it is that this now places the full responsibility of preparation on sellers or their chosen third-party service providers.
But why the sudden change?
There's no need to speculate when it comes to why Amazon is making this update. They've already provided a clear explanation behind their decision. According to Amazon:
"We initially introduced prep services to help protect products during the shipping process. Since then, we've seen a significant improvement in seller packaging capabilities and a reduced need for our prep services."
Amazon also emphasized that this change aims "to improve operational efficiency that ensures quicker delivery times for customers."
Finally, if we take a step back and look at this change Amazon is making – as a whole. This change suggests that Amazon believes that streamlining its internal processes by eliminating prep services will ultimately enhance the customer experience by accelerating fulfillment times.
Therefore, this policy shift means sellers must now consider how to handle various preparation requirements. This includes everything from bubble-wrapping, bagging, taping, labeling, and other specialized preparations that Amazon previously offered as a service.
Navigating Alternatives
With Amazon sunsetting its prep services in 2026, many sellers are left wondering: "What now?"
The good news? There are options – and some of them (I would argue) are even better.
DIY prep and labeling
One option is that sellers can take the preparation and labeling in-house. This approach gives businesses complete control over the inventory preparation process.
As a little insider tip, for proper DIY labeling, sellers need correctly sized blank mailing labels (at least 1-2 inches tall and 2-3 inches wide) and a laser printer capable of 300 DPI output 12.
Therefore, when creating compliant labels, remember these key requirements:
- Labels must include a scannable barcode, corresponding number (like FNSKU), product title, and condition status
- Labels should be placed on smooth surfaces, avoiding corners, edges, and curves
- Original barcodes must be covered when products don't need extra packaging 12
This option does require investing in equipment and dedicating staff time to preparation tasks, so it might not be ideal for smaller sellers. Still, for any business that wants to take control of the prep and labeling process, there's no time like the present!
Using third-party logistics providers
Third-party logistics (3PL) providers, especially those within nationwide fulfillment networks like Zenventory, are stepping up to fill the gap. These aren't just warehouses either. They're full-on logistics command centers, built to handle the new (and evolving) demands that Amazon throws at them.
So, from precise prep to strict compliance, top-tier 3PLs are already equipped to meet Amazon's requirements. That means every shipment is labeled correctly, fully prepped, and ready to go – no delays, no penalties.
Zenventory's 3PL network makes sure you stay compliant and competitive in the post-Amazon-prep era.
Final thoughts
The complete phase-out across all Amazon logistics programs (FBA, AWD, AGL, and SEND) signals a shift in how the e-commerce giant manages its fulfillment ecosystem.
Amazon believes this change will streamline operations and ultimately benefit customers through faster delivery times. But many sellers have expressed significant concerns about their ability to maintain efficient operations without these services.
Sellers must now carefully evaluate their options and choose the best alternative for them. Those who adapt quickly may actually discover unexpected benefits through improved packaging control, potential cost savings, and enhanced brand visibility. (We love a silver lining).
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