Amazon Ends FBA Prep & Labelling Services: What Sellers Need to Know Before January 2026

Amazon’s FBA Prep and Labelling Services have long helped sellers meet warehouse standards. But what exactly do these services involve?

What are Amazon FBA Prep and Labelling Services?

FBA (Fulfilment by Amazon) means Amazon stores, packs, and ships your products to customers. But before your inventory reaches Amazon’s warehouse, it must meet Amazon’s prep and labelling standards. These include all the steps needed to prepare your products for Amazon’s fulfilment centres. Common prep tasks include:

Inspection (checking for damage or defects).
Poly bagging.
Bubble wrapping.
Taping.
Bundling or kitting.
Expiration date labelling.
Packaging to Amazon specs means ensuring each product meets Amazon’s specific size, weight, material, and protection requirements to avoid damage during transit.

In addition to prep, Amazon also offered labelling services to help sellers meet its barcode and packaging compliance standards. Amazon requires specific barcodes (FNSKU labels) on each unit for tracking. Its labelling services include:

Print and apply FNSKU, UPC, or warning labels.
Ensure label placement meets Amazon guidelines.
Handle case pack labelling and pallet labelling (if shipping in bulk).

For how long was this service active?

Amazon’s FBA Prep and Labelling Services have been active since the early years of the FBA program, which launched in 2006. Initially, it was a complete fulfilment solution, but sellers were fully responsible for preparing and labelling their products before sending them to Amazon. Later on, Amazon started offering optional FBA Label Service and FBA Prep Service through Seller Central around 2011–2012, as FBA adoption grew and more sellers needed help meeting compliance standards.

How Amazon’s Prep and Labelling Services Helped Sellers Boost Sales and Scale Efficiently

Sellers who used Amazon services often got their inventory into FBA warehouses faster, leading to quicker sales and better rankings. They didn’t need to hire in-house teams or rent warehouse space. This was especially beneficial for international sellers who couldn’t prep inventory themselves. It helped many small and remote sellers grow their businesses. They also avoided delays and stayed in stock by meeting Amazon’s requirements. This allowed their products to be checked in faster, appear more frequently in search results, and win the Buy Box, resulting in more sales and stronger growth.

Here’s the major update that changes everything:

Amazon confirmed via seller communication on July 28, 2025, that it will fully discontinue prep and item labelling services in the U.S. effective January 1, 2026, including for FBA, AWD, AGL, SEND, and inventory sent via Supply Chain Portal. “On Monday, Amazon informed sellers it would stop offering prep services altogether beginning January 1, 2026.” For shipments created before January 1, they’ll continue to provide prep and item labelling services, even if inventory arrives after that date. Shipments created after January 1 that arrive without proper prep and item labelling won’t be eligible for reimbursement if items become damaged or untraceable. For details on this reimbursement policy, visit the FBA inventory reimbursement policy.

Added Burden on Sellers as Amazon Ends Prep and Labelling Services.

With Amazon ending its FBA prep and labelling services from January 1, 2026, sellers now face added responsibilities. They must handle all prep and labelling themselves or outsource to third-party prep centres, increasing both costs and operational workload. For new or less experienced sellers, the added complexity could become a barrier to entry, making it harder to launch or scale an FBA business.

More Control and a Fairer Playing Field for Sellers After FBA Prep Service Shutdown.

On the positive side, this shift gives sellers greater control over how their products are packaged and branded, potentially enhancing customer experience and product protection. It also allows sellers to work with third-party prep centres that may offer more flexible services, like bundling, inspection, or custom labelling. Additionally, big sellers used to get help from Amazon to prep and label their products, which saved them time and money. Small sellers couldn’t always afford that. Now that Amazon is ending those services, everyone has to do it themselves, so it’s more fair for all sellers.

Third-Party Prep Centres Set to Grow as Amazon Ends FBA Prep Services.

The end of Amazon’s FBA prep and labelling services is great news for third-party prep centres. Thousands of sellers now need someone else to handle prep and labelling. This means more clients and more revenue for third-party prep centres. For this, they would also expand their operational services, like hiring more staff, upgrading facilities and even opening new warehouses. For prep centres, this means they can earn steady, continuous income as sellers regularly send them products to prep. It helps them grow their business and keep long-term customers.

What’s Next for Amazon Sellers?

If sellers don’t get ready for this change, Amazon might delay or reject their products. Items without proper prep or labels won’t be covered if they’re lost or damaged. This can lead to running out of stock, losing sales, and unhappy customers.