On January 1, 2026, Amazon will officially end all prep and item labeling services for FBA shipments in the U.S. This includes any inventory sent directly into FBA or funneled through Amazon services like AWD (Amazon Warehousing and Distribution), AGL (Amazon Global Logistics), SEND, and Supply Chain Portal if it ultimately lands in FBA.

Amazon’s own email to sellers confirms:

“We’ll no longer offer prep and item labeling services for Fulfillment by Amazon (FBA) shipments in the US store… The vast majority of Amazon sellers now handle their own packaging, including prep and item labeling, either on their own, through manufacturing partners, or through third-party service providers.”

Read on to learn what this means for Amazon sellers and how to adjust your logistics strategy to ensure seamless inbounds to the Fulfillment by Amazon network with fully prepped and labeled items.

What’s happening to Amazon FBA prep?

In the past, Amazon has provided prep and labeling services for goods sent into the FBA network, to help enable sellers to access the program better and lower the barrier to entry. However, since then, sellers and the Amazon provider ecosystem has gotten robust and sophisticated enough that this will no longer be the case.

Starting from January 1, 2026, Amazon will no longer offer this service, according to their FBA prep help center page.

What Amazon’s cessation of FBA prep services entails

Here are the most important points to remember when it comes to this new service adjustment.

Millions of sellers rely on Amazon prep

For smaller brands, resellers, and wholesale operators, Amazon’s in-network prep service was the safety net.

Losing it means all sellers must ship fully prepped units that are labeled, polybagged, kitted, bundled, or bubble-wrapped before Amazon will accept them.

And, there is no room for error. Sending in items that aren’t properly prepped for FBA will mean either Amazon will return them (costing you time and money), or dispose of them (costing you inventory and opportunity). There will be no further option to pay for a prep “fix” once items land in the FBA network.

Sellers will scramble for 3PLs

Amazon sellers that relied on Amazon’s in-house FBA prep system, even as a backup, are now scrambling for 3PLs with Amazon expertise that can handle their FBA prep.

As Jon Elder put it on LinkedIn:

“The real winner from this will be 3PLs. As millions of sellers go hunting for these services, these companies will print cash.”

Third-party prep providers and logistics partners will see a surge in demand, and those that can handle volume quickly and compliantly will dominate.

Tip: MyFBAPrep has more than 85M squarefeet of operating space to prep items for Amazon spread across the USA. We also have decades of experience and expertise to ensure we prep items the right way, every time.

Amazon is doubling down on efficiency

This is part of a broader shift where Amazon focuses on warehouse speed and cost reduction rather than putting out fires for smaller sellers. If your supply chain isn’t turnkey, you risk delays, chargebacks, or stranded inventory.

How sellers can continue to efficiently prep goods for FBA

With Amazon exiting the prep game, sellers need a trusted, scalable 3PL partner that can:

• Handle all FBA prep services:
  • FNSKU labeling
  • Polybagging and shrink wrap
  • Bundling and kitting
  • Carton forwarding and cross-docking
• Process large volumes quickly to meet FBA cutoffs and avoid storage delays.
• Operate across 100+ U.S. and international warehouses for maximum coverage and speed.
• Support multiple channels—not just FBA but also DTC, retail/B2B, and cold chain logistics.

MyFBAPrep is built for this exact scenario. We already partner with enterprise brands, aggregators, and high-volume sellers to take Amazon’s burden off your shoulders. With over 85M sq ft of network capacity, we are ready to absorb the wave of demand coming from Amazon’s decision.

MyFBAPrep is an Amazon-recommended FBA prep service provider

Did we mention that we are an Amazon-recommended FBA prep service provider?

MyFBAPrep was selected by Amazon as a Recommended Prep Service Provider for Fulfillment by Amazon (FBA), following Amazon’s most extensive national vetting process to date. The rigorous evaluation spanned hundreds of performance, compliance, and scalability data points aimed at identifying logistics partners capable of delivering Amazon-grade prep services to its 1.1 million active marketplace sellers in the United States.

Reach out to us today to get started.

The Bottom Line for Sellers

• Starting Jan 1, 2026, all FBA inventory must be prepped and labeled before reaching Amazon.
• Sellers who don’t act now risk delays, lost sales, and compliance issues.
• 3PL partners like MyFBAPrep will be the backbone for sellers looking to keep inventory flowing without disruption.

Want to secure capacity now?

👉 Contact MyFBAPrep and lock in your FBA prep strategy before the Amazon scramble begins.