August 7, 2025

Originally posted July 18, 2022, updated August 6, 2025.As the Gary Clark Jr. song says, “Things Are Changin…” And while he isn’t talking about retail fulfillment or the supply chain, the song title and some of its sentiments very much reflect the current tone of the industry.Between tariffs, policies, and brands’ expanding sales and fulfillment channels, it can feel like a new regulation, rule, or announcement occurs each week.In the marketplace world, Amazon recently made a major announcement that will affect many retail brands’ logistics and fulfillment operations: “Effective January 1, 2026, Amazon will discontinue its prep and item labeling services for Fulfillment by Amazon (FBA) shipments in the U.S. store.”Breaking down Amazon’s FBA prep announcementYes, Amazon currently offers its own FBA Prep Services to help sellers prepare their inventory for fulfillment. These services ensure that products are packaged, protected, and labeled according to Amazon’s strict FBA requirements before entering their fulfillment centers.For a per-unit fee, Amazon will:Label products with FNSKU barcodes (if the seller didn’t do it themselves)Apply bubble wrap for fragile itemsBag items in poly bags for protection or hygieneAdd warning stickers (like suffocation warnings or “Sold as Set” labels)Bundle or sticker multipacks or setsSeal products to meet specific handling requirementsThis has been particularly useful for:Sellers with high volume who wanted to save timeInternational sellers unfamiliar with U.S. packaging normsBusinesses without the space or staff to prep items manuallyAmazon is phasing out these services in the U.S. as of January 1, 2026, citing better packaging capabilities among sellers and increased use of third-party prep providers. According to Amazon, this allows them to focus on core fulfillment operations and speed. Sellers who relied on Amazon’s prep services will now need to handle all prep and labeling either in-house or through a vetted third-party provider.Key Impacts:Sellers must fully prep and label all products before sending them to Amazon’s fulfillment centers after January 1, 2026.Amazon will not reimburse for unprepped or unlabeled items that are damaged or untraceable if shipped after the deadline.Shipments created before Jan 1, 2026, will still receive prep services even if they arrive later.Seller options:Do it yourself: Follow Amazon’s prep guidance.Use a third-party provider (e.g., a 3PL that provides Amazon FBA prep services)Join the SIPP (Ships In Product Packaging) program: To reduce prep needs and receive discounts for eligible products.Given that brands may have to adjust their processes to handle Amazon’s FBA prep retirement, it’s important to determine if a current or potential 3PL partner can support FBA prep. Here’s how.What is FBA prep?Brands that deliver merchandise to Fulfillment by Amazon (FBA) can’t just stuff it in a box and hand it to a courier; it must meet many specific standards to be accepted at Amazon’s fulfillment centers, which means it must be prepped for FBA.In short, FBA prep prepares inventory for Amazon by following labeling, packaging, and compliance steps to ensure it meets the guidelines.FBA prep is crucial. Amazon won’t accept goods if the prep is wrong, and brands must pay to return them. In addition, if a consistent pattern of inaccuracies affects consumers, listings may be muted or the account may be suspended.Should brands outsource FBA prep?Since Amazon will no longer offer FBA prep, retailers can either complete FBA prep in-house or outsource it to their 3PL or another third-party service.That said, FBA prep is complex. It’s not uncommon for retailers to make costly mistakes, especially when first learning to navigate the process. By outsourcing, it’s prepped by specialists. An FBA prep service knows the procedure and ensures that a brand’s goods comply with Amazon’s guidelines, reducing the risk of rejection.Moreover, Amazon’s myriad of requirements make FBA preparation time-consuming. Instead of focusing on core business and innovation, brands spend time assessing stock, packaging, and printing labels. They also have to keep up with evolving guidelines, which may change how items must be prepared.Choosing a 3PL with FBA prep experienceGiven the new reality, FBA prep should be a value-added service (VAS) considered when selecting a 3PL. Even if a business hasn’t expanded into the Amazon Marketplace yet, it’s beneficial to make sure a 3PL can handle it if that’s a possibility in the near future. Here are some questions to ask about 3PLs and FBA prep:1. Does the fulfillment center offer FBA prep?Generalized fulfillment experience is not the same as FBA prep or marketplace fulfillment experience. When talking with a current or potential 3PL, ask about FBA prep knowledge and if they currently help customers with FBA prep. They should have:Packaging knowledgeLabeling knowledgeSLA knowledgeKnowledge of Amazon’s fulfillment techniquesFBA user interface knowledgeFulfilled by Merchant (FBM) knowledge if they want a hybrid fulfillment approach2. Does the facility have packaging and labeling experience?Amazon FBA is helpful for warehousing, inventory management, pick-and-pack, order prep, and shipping for brands that want to be a part of Prime. However, these brands are responsible for getting inbound inventory to the fulfillment facility. Enrollment criteria include packing and labeling, and a third-party prep partner can typically fulfill these quality-driven B2B fulfillment operations.Make sure a prep partner understands Amazon’s packaging and labeling requirements. The whole set of regulations is a book-length topic, but packing criteria include:Scannable barcode (no obstructions)Secure, damage-resistant packagingPoly bag for loose or spillable itemsBubble wrap for fragile products“Sold as set” label for bundled itemsSuffocation warnings on plastic bags (if applicable)No exposed sharp edges or hazardous materialsEach pallet or item must have the correct box ID for labeling rules. The label must be the correct size, not on a seam, and accompanied by the shipper’s label.3. Do they understand Amazon’s SLA?Enrolling in FBA means complying with Amazon’s strict operational standards and service-level agreements (SLAs). While the FBA program offers some customization, SLAs are largely standardized and non-negotiable. Your prep partner can help interpret these requirements and ensure your processes align with Amazon’s expectations.4. Is there an Amazon partnership or integration in place?When evaluating a prep or fulfillment partner, experience with Amazon matters. It’s not just about knowing FBA basics but about navigating the complexities of Amazon’s systems with precision. Your 3PL should understand how to properly label and route inventory, process orders through the Amazon portal, and meet strict service-level requirements without delays or errors.As an example, Kase is a trusted 3PL partner of Amazon and offers integrated solutions for sellers using FBA, FBM, SFP, and Amazon Shipping.Whether you need help preparing inventory for FBA, managing Seller Fulfilled Prime, or accessing affordable ground shipping, an experienced Amazon-integrated partner helps brands deliver faster, more reliably, and more cost-effectively.The benefits of working with an FBA prep partnerEcommerce businesses can benefit from Amazon FBA; but FBA prep takes patience. Third-party outsourcing can help retailers transition. The benefits are far-reaching, and include:Save time, money, and effort: Avoid costly delays and fines by outsourcing to experts who understand Amazon’s strict prep standards.Skip on-site storage: Reduce warehouse costs by shipping inventory directly to a prep partner instead of storing it a HQ.Boost efficiency and margins: Specialists prep and ship faster, helping brands scale operations and serve more customers.Flexible storage and fulfillment: Store bulk inventory with a prep partner and send to Amazon based on sales velocity to lower FBA fees.Protect against suspensions: Keep inventory outside of FBA during account issues to reduce the cost and delay of returns and reprocessing.Cost-effective pricing models: Choose per-item or monthly rates based on volume; watch for added costs like bubble wrap or minimum unit requirements.Strategic location advantages: Lower costs by choosing a prep center near ports, fulfillment centers, or robust transportation networks.Reliable turnaround times: Look for providers with 24- to 48-hour processing guarantees to avoid late shipment penalties.Thorough inspection protocols: Prep partners can catch quality issues missed during manufacturing, reducing returns and complaints.Climate-controlled storage: Essential for food, supplements, or sensitive items that could be damaged by temperature or humidity.Ready for the FBA prep transition?With Amazon ending its FBA prep and labeling services in 2026, now is the time to reevaluate your fulfillment strategy. The right 3PL partner can help you stay compliant, reduce operational headaches, and keep your business running smoothly without missing a beat.Kase offers full-service 3PL solutions tailored for Amazon sellers, including expert FBA prep, flexible storage, fast turnaround times, and seamless integration with Amazon Shipping, FBM, and SFP programs. Whether you’re scaling, diversifying channels, or adjusting to the latest Amazon policies, our team is ready to help. Connect with Kase today to streamline your operations and stay ahead of the changes.