image of box of books being prepared to be shipped

Amazon has announced that it will no longer offer FBA prep services to sellers as of January 1, 2026. This means Amazons optional fee-based services for preparing and labeling products (which many sellers have used to get items ready for Fulfillment by Amazon) are going away. The change is significant and will affect thousands of Amazon sellers who relied on Amazon to handle product labeling, poly-bagging, and other prep tasks before shipping inventory to fulfillment centers. If youve been sending inventory to Amazon without fully prepping it yourself, youll need to find an alternative solution soon.

Why Is Amazon Ending Its FBA Prep Service?

In an official notice to sellers on July 28, 2025, Amazon explained the reasoning behind this move. Amazon initially introduced FBA prep and item-labeling services to help protect products during shipping, but over time theyve seen a significant improvement in seller packaging capabilities and a reduced need for Amazons prep services. In other words, most sellers (or their manufacturers/partners) now handle prep themselves, allowing Amazon to focus on core fulfillment operations.

amazon package under christmas tree

Amazon stated that eliminating prep services will improve operational efficiency [and] ensure quicker delivery times for customers. By streamlining its processes and offloading prep duties, Amazon believes it can speed up warehouse intake and fulfillment, ultimately enhancing the shopper experience.

From Amazons perspective, phasing out prep services lets their fulfillment centers run faster and leaner. But for sellers, this policy shift means the full responsibility for compliant prep now falls on you or your chosen third-party. Every unit you send to FBA will need to be properly packaged, poly-bagged or bubble-wrapped as required, and labeled with the correct barcodes before it arrives at Amazons facilities. Amazon is effectively saying: We trust you to get your products FBA-ready, or to hire someone who can.

Timeline and Impact on Sellers

Key Date: January 1, 2026

Thats when Amazon officially ends all FBA prep and labeling services.
Heres how it breaks down:

    • Until Dec 31, 2025: Amazons prep services (like labeling, bubble wrapping, etc.) will continue as usual.

       

    • After Jan 1, 2026: Any new FBA shipment must arrive fully prepped and labeled.

       

    • Grace period: Shipments created before Jan 1 will still be serviced, even if they arrive in early 2026.
    amazon technology robots

    What This Means for Sellers

    If youve been sending in unlabeled or unprepped products and relying on Amazon to handle it, that option is gone. From Jan 1 onward:

    • All units must arrive ready to go barcoded, bagged, bundled, or wrapped as needed.
    • No prep = no reimbursement: Amazon wont cover lost or damaged items if they werent properly prepped beforehand.

    Applies to All Amazon Logistics Programs

    This change isnt just for standard FBA shipments. It also includes:

    • Amazon Warehousing & Distribution (AWD)
    • Amazon Global Logistics (AGL)
    • Amazon SEND
    • The Supply Chain Portal

    No Amazon service will include prep anymore. Period.

    photo of inside warehouse 3PL return management

    Why It Matters

    Sellers who depended on Amazons prep, especially those without a warehouse, are in a tough spot. As one seller put it:

    This will crush us. We dont have the facilities to do prep work.

    If you havent yet built prep into your operations, now is the time. Tasks like FNSKU labeling, bubble-wrapping, poly-bagging, and kitting will all be your responsibility moving forward.

    Managing FBA doesnt have to be a hassle.

    Partnering with a 3PL like lite prepcenter means you can focus on growing your business while we handle the prep. Request a Free Quote Today!

    Alternatives to Amazons FBA Prep Services

    Amazon may be phasing out prep services, but sellers still have solid options.

    woman packaging an order to be fulfilled

    1. Handle Prep In-House

    Some sellers may decide to take prep into their own hands. That means:

    • Inspecting, packaging, and labeling each unit according to Amazons requirements
    • Stocking supplies like poly bags, suffocation warning labels, bubble wrap, and barcode printers
    • Training staff on strict FBA prep rules, such as:
      • Where to place FNSKU labels
      • How to cover existing barcodes
      • Packaging sets or fragile items properly

    Pros:

    • Full control over your process
    • Faster turnaround if operations are streamlined

    Cons:

    • Requires space, equipment, and labor
    • High complexity for small sellers or solo operators
    • Mistakes can mean costly delays or penalties

    Bottom line: if you have the resources and want control, this is doable, but its not for everyone.

    Warehouse worker picking items for e-commerce orders.

    2. Outsource to a 3PL (Prep Center)

    For many sellers, using a professional third-party FBA prep service just makes more sense.

    What they do:

    • Receive your inventory

       

    • Handle all Amazon-required prep tasks (labeling, bagging, bundling, etc.)

       

    • Forward shipments directly to Amazon fulfillment centers

       

    Benefits:

    • Avoid the hassle of learning Amazons evolving prep rules

       

    • Reduce risk of non-compliance fees or delays

       

    • Focus on scaling instead of packing boxes

       

    Yes, it comes with a service fee, but avoiding mistakes that can cost you sales or FBA issues? Often worth it.

    Many sellers already use a prep center as part of their workflow, and Amazon is actively encouraging this route.

    Use Amazons Service Provider Network (SPN)

    Amazon now features a dedicated FBA Prep Providers category within its Service Provider Network (SPN). These are vetted services that meet criteria for:

    • Prep accuracy and compliance

       

    • Turnaround time and capacity

       

    • Pricing and geographic coverage

       

    If youre unsure where to start, the SPN portal is a great place to begin. Youll find providers offering:

    • Labeling and poly-bagging

       

    • Quality checks

       

    • Kitting and bundling

       

    • Storage and freight forwarding options

    Lower Your Costs with Smarter FBA Prep.

    Partner with lite prepcenter to move inventory faster and reduce FBA fees. We help Amazon Sellers optimize operations so products dont sit on shelves. Request a Free Quote today!

    3. Reduce Prep with SIPP

    Amazon also recommends looking into its Ships in Product Packaging (SIPP) program. If your products original packaging can survive the shipping process, you may be eligible.

    Benefits of SIPP:

    • Less prep needed (no extra boxes or bags)

       

    • Potential FBA fee discounts

       

    • Faster processing

       

    Just note: not all products qualify. Its helpful, but not a complete solution.

    How lite prepcenter Can Help with FBA Prep

    With Amazon stepping away from FBA prep in 2026, many sellers are scrambling for reliable solutions. Thats where lite prepcenter (LPC) comes in.

    A trusted FBA prep partner for over 20 years, LPC is a 3PL with deep expertise in Amazon compliance. They offer a complete, hands-off prep solution to help sellers stay compliant, avoid penalties, and keep inventory moving.

    amazon returns box waiting to be sorted

    Why Sellers Choose lite prepcenter

    Full-Service FBA Prep Done Right

    LPC handles everything Amazon used to do, including:

    • FNSKU barcode labeling

       

    • Poly-bagging (with suffocation warnings)

       

    • Bubble-wrapping fragile items

       

    • Taping, kitting, bundling, and more

       

    Their team knows Amazons prep requirements inside and out, so your inventory passes inspection the first time, no non-compliance fees, no shipment delays.

    scaling

    Cost Savings vs. Amazons Old Prep Fees

    Many sellers are surprised to find LPC is cheaper than Amazons former prep service. Here’s how:

    • No Amazon per-item prep fees (labeling, bagging, etc.)

    • No sales tax on services in Michigan (where LPC is located)

    • No hidden fees, surcharges, or contracts

    • Transparent per-unit pricing

    Some sellers report saving up to $1,000 per pallet just by avoiding Amazon penalties.

    200,000 sq. ft. Warehouse = High Volume + Flexibility

    • LPC can store bulk inventory and send batches to Amazon as needed

    • Ideal if youre dealing with Amazon restock limits

    • Fast turnarounds keep your listings in stock and your IPI score healthy

    Bottom line: they keep your supply chain moving so you dont run out of inventory or rack up downtime fees.

    warehouse worker at computer

    Personalized Support That Feels Like a Partnership

    • Every seller gets a dedicated account manager

    • Youre not stuck with chatbots or long support tickets

       

    • Their team is known for responsive, real-world help when you need it

       

    Sellers often say LPC feels like an extension of your team and mean it.

    Seller-Friendly Terms (No Minimums or Lock-Ins)

    • No minimum order volume

    • No long-term contracts

    • No surprise storage fees

    • Pay only for what you need, when you need it

    Perfect if you’re scaling up or just starting out.

    What does no express shipping mean?

    Multi-Channel Ready & Scalable

    LPC doesnt just do FBA prepthey can grow with you.

    • Supports Amazon FBM, Walmart, eBay, Shopify, and more

    • Integrations across platforms = less tech headache

    • Handles thousands of SKUs for sellers of all sizes

    • 99%+ satisfaction rate across domestic & international clients

    If you expand beyond Amazon, theyll already be one step ahead.

    Bottom Line

    Amazon is stepping back. lite prepcenter is stepping up.

    With LPC, your inventory gets prepped right the first time. Youll stay compliant, avoid unnecessary fees, and free yourself from the complexity of FBA rules.

    Less hassle. More control. Real savings.

    Struggling with High Inventory Costs?

    Our 3PL services streamline your fulfillment process and boost profitability. Get a Free Quote and start improving your cash flow today!

    Preparing for the Post-Amazon-Prep Era

    Amazon is stepping away from FBA prepbut you dont have to be caught off guard. Use this transition as an opportunity to streamline your operations and improve your bottom line.

    amazon returns box waiting to be sorted

    1. Get Familiar with FBA Prep Requirements

    If you havent reviewed Amazons latest FBA prep and labeling rules, nows the time.

    • Study how Amazon expects items to be packaged, labeled, and protected (poly bags, bubble wrap, barcodes, etc.)

       

    • Know the standards, even if you’re outsourcing, so you can oversee quality or speak the same language with a 3PL

       

    • Amazon provides prep documentation in Seller Central, read it thoroughly

    2. Audit Your Current Workflow

    Ask yourself:

    • What was Amazon doing for you?
      (FNSKU labels? Fragile-item prep? Bundling?)

    • What are you equipped to handle in-house?

      • Just labeling? Grab a thermal printer and barcode sheets

      • Full-service prep? You may need staff, space, and training

    • This audit helps you identify the gapsand whether DIY or outsourcing makes more sense

    3. Plan Ahead for Year-End 2025

    The cutoff is January 1, 2026so be strategic about your Q4 shipments.

    • Create and send final prep-eligible shipments before Dec 31, 2025

    • This gives you one last use of Amazons prep servicesbut only as a short-term buffer

    Come January, your new prep system needs to be ready and running

    4. Decide: DIY vs. 3PL Prep Service

    Run the numbers:

    • In-house prep costs: labor, tools, space, materials

    • 3PL prep costs: service fees, but with less hands-on work and fewer compliance risks

    Dont ignore your time value. Many sellers realize it’s smarter to outsource logistics and focus on selling and scaling.

    If you go DIY, be sure to:

    • Get a reliable label printer

    • Buy compliant packing supplies

    • Run a test shipment to verify your process meets Amazon standards

    5. Research Trusted 3PL Partners Now

    If youre outsourcing, dont wait until December.

    • Check Amazons Service Provider Network for vetted FBA Prep providers

    • Look for:

      • Clear pricing

      • Positive seller reviews

      • Prep services that fit your business (storage, freight, kitting, special projects)

    lite prepcenter (LPC) is a standout exampleexperienced, well-reviewed, and already working with Amazon sellers like you.

    Reach out for a quote now so youre not scrambling later.

    6. Optimize Your Supply Chain for the Long Run

    Without Amazon handling prep, coordination becomes more important.

    • Talk to your suppliers or manufacturers about doing prep at the source

      • Can they apply FNSKU labels?

      • Can they package items to FBA standards?

    • Account for extra transit time if youre using a 3PL

      • Supplier ? Prep Center ? Amazon

      • With a fast partner like LPC, this is efficientbut it still needs to be baked into your lead times
    amazon technology robots

    Final Thought

    This shift might feel disruptivebut its also a chance to build a better system.

    Many sellers find that using a specialized prep partner:

    • Speeds up check-in at Amazon

    • Reduces surprise fees

    • Improves inventory visibility and control

    What starts as a challenge can quickly become a competitive advantageif you plan for it now.

    Key Takeaways for Amazon Sellers:

    Amazons decision to exit the FBA prep service space is a big change, but it doesnt have to be a setback for your business. With a bit of planning and the help of the right partners, you can adapt and continue to thrive. Sellers who embrace third-party solutions may find greater flexibility and support than they had when relying on Amazons internal service. This is an opportunity to streamline your operations and perhaps even save on costs, all while ensuring your products are flawlessly prepared to delight Amazon Prime customers.

    If youre an Amazon seller needing help with FBA prep, lite prepcenter is ready to be your ally in this transition. With decades of experience and a reputation for excellence, LPC can handle the heavy lifting of prep so you can focus on growing your sales. As Amazon steps back from prep services, lite prepcenter is stepping up offering an engaging, reliable, and efficient FBA prep solution for sellers like you. Feel free to reach out to learn more or get started, and make this change work to your advantage.

    Ready to talk fulfillment or FBA Prep solutions? The team at lite prepcenter is happy to help answer questions and set you up for fulfillment success. Heres to fewer headaches and more growth ahead!