Amazon is Shutting Down FBA Prep Services Starting in 2026

Beginning January 1, 2026, Amazon will stop offering FBA prep and labeling services for any shipments sent to its U.S. fulfillment centers. This includes inventory moving through AWD, AGL, Amazon SEND, and the Supply Chain Portal. From that date forward, all new shipments must arrive at Amazon fully prepped and compliant.

For years, Amazon’s prep service provided a safety net. Sellers could rely on the platform to handle tasks like labeling, bagging, or wrapping that they had not completed beforehand. With this option going away, the responsibility now falls entirely on sellers to manage compliance before their shipments reach Amazon’s network.

What Sellers Are Losing from Amazon

The most obvious loss is the elimination of Amazon’s prep and labeling work. Sellers who previously depended on Amazon to apply FNSKU labels, bubble wrap fragile goods, poly-bag items, or assemble kits will no longer have that option.

There is also a grace period ending. Shipments created before January 1, 2026, can still receive prep services, even if they arrive later. After that date, however, every shipment must be prepped in advance.

Another critical loss is the protection Amazon provided when items were mishandled. If shipments arrive without proper prep or labeling after the policy change, sellers face the risk of rejection, delays, or ineligibility for reimbursement if damage occurs.

Why This Matters for Overseas Brands

For domestic U.S. sellers, adapting to this change may be inconvenient but manageable. They can use local facilities or in-house staff to handle prep. For overseas brands, the challenge is much greater.

When goods are produced and shipped in bulk from Asia, Europe, or Latin America, they typically arrive at U.S. ports in container loads. In the past, Amazon’s prep service served as a bridge, ensuring products could be brought into compliance at the last moment. Without this service, overseas sellers must ensure all compliance steps are complete before the inventory ever reaches Amazon’s fulfillment centers.

The risks are significant. A shipment rejected for missing barcodes or improper packaging may sit idle for weeks while corrections are made. That delay can damage sales, hurt performance metrics, and frustrate customers. For new brands entering the U.S. market, even a single compliance failure can stall momentum and undermine their reputation.

What Sellers Should Do Now

The first step is to audit your catalog. Identify products that rely on Amazon’s prep today and note the specific services they require.

The second step is to run pilot shipments with an alternative prep solution before the cutoff date. This testing period is critical for uncovering errors and ensuring smooth compliance.

The third step is to secure a reliable partner as early as possible. Demand for prep services will rise sharply toward the end of 2025 as sellers scramble to transition. Those who wait risk finding themselves without support at the moment they need it most.

By planning early, testing thoroughly, and working with a logistics partner like AWI, sellers can avoid disruption and continue to grow in the U.S. market with confidence.

How AWI Supports Sellers Through This Transition

We review your catalog, flag products that need prep, and create a plan to keep shipments FBA-ready. During 2025, we guide you in using Amazon’s service while testing AWI’s workflows, so you’re ready before the deadline.

Our facilities near major ports handle every detail: labeling, wrapping, bagging, kitting, and inspections. Shipments leave us fully compliant and move quickly into Amazon’s network.

With integrated systems, you get real-time visibility into inventory and shipments. And when volumes spike during launches or peak seasons, AWI scales to keep orders moving without disruption.

From Risk to Opportunity

Amazon’s decision to end FBA prep services on January 1, 2026, represents a major shift in fulfillment strategy. Sellers lose convenience, protection, and flexibility. For overseas brands, the stakes are even higher, as they must now guarantee compliance before their shipments reach Amazon’s network.

Yet this disruption is also an opportunity. By partnering with Advanced Warehouse, sellers gain not just a replacement for Amazon’s prep service but a more comprehensive solution. With full-service prep, strategic planning, transparent systems, and scalable operations, AWI ensures that global brands can continue to meet customer expectations and compete effectively in the U.S. market. Contact us today and we’ll help you transition away from Amazon’s defunct FBA Prep Service.