Amazon Ends FBA Prep Services: What It Means for Sellers

In late July 2025, Amazon announced that it will end its Fulfilled by Amazon (FBA) prep services as of January 1, 2026, giving sellers approximately five months to implement an alternative approach. For sellers who utilized the service for shipment preparation and labeling, it will be critical to either take on these additional responsibilities internally or work to find another solution to expedite and streamline their e-commerce operations without short-term delays or inefficiencies, particularly with peak season approaching.

Understanding the Implications

For shippers, the stakes are high. Particularly for those shipping low-cost goods who rely on high volume for profitability, these items are now taxable, which will have a drastic impact on their ability to sell based on value, as most will have to pass along all or part of the additional costs to consumers. Companies will also be subject to greater administrative burdens due to the paperwork and documentation that must be provided for formal customs entry, translating into longer transit times and slower deliveries for customers.

The change, which will impact millions of sellers, will require all products to arrive at Amazon fulfillment centers ready to be distributed in accordance with Amazon’s packaging requirements. Shipments that are created prior to January 1 will still be eligible for prep services; however, there will be no reimbursements for any unprepped items that are lost or damaged, and any items that arrive unprepped after January 1 will likely be rejected or discarded.

The range of services that will be discontinued includes:

• FNSKU barcode labeling
• Polybagging
• Bubble wrapping
• Taping
• Opaque bagging
• Suffocation warning labels
• Bundle creation
• Set preparation
• Item inspection
• Sticker removal

What It Means for Sellers

Given the five-month timeframe between the announcement and when it will officially take effect, many sellers are likely scrambling to adjust their operations to accommodate the changes. Many small and medium-sized businesses will lack the bandwidth and internal resources to take on the additional work themselves, and those that do will need to be properly educated and trained on Amazon’s requirements to prevent shipment rejections, which can create additional costs and delays. As a result, many sellers will likely seek assistance with these services directly from the manufacturer or an experienced 3PL partner.

Companies that look to take on these additional responsibilities internally will face a number of challenges, including the direct costs of packaging materials, additional personnel to perform the duties, and costs associated with proper training and quality control, as well as costs associated with the learning curve for potential rejected shipments and compliance failures. Operational and timing adjustments will also need to be factored in to ensure that shipments arrive at Amazon’s fulfillment centers ready to be shipped.

The 3PL Advantage

For companies that do not have the resources or time available to absorb these operational changes internally, partnering with a trusted 3PL can help to alleviate the operational burden of these additional responsibilities while building a more flexible network that can allow you to realize cost savings. For example, a 3PL that has fulfillment centers located in close proximity to Amazon distribution centers can help save companies time and money while ensuring they are strategically positioned to quickly move product as needed.

Additional benefits include:

• Seamless operational continuity due to their expertise in meeting Amazon’s requirements

• Additional network locations and space available to scale and grow with your needs

• Reduced delays due to faster prepping and delivery to distribution centers

• Cost efficiency, with lower transportation costs to nearby distribution centers and discounts often available based on volume or long-term agreements

• Ability to focus on growing market share and the business rather than packaging logistics

For companies seeking a 3PL to handle their prep services, ask the following questions to ensure they can help facilitate a smooth transition:

• Does their network offer convenient access to Amazon fulfillment centers?

• Do their locations align with key customer bases or areas where you anticipate growth?

• Have they previously or do they currently manage prep services for other Amazon customers and have experience meeting their requirements?

• Do they offer the full range of services needed?

• What is the turnaround time from when items arrive for prep until they arrive at an Amazon distribution center?

• What is their maximum daily/weekly prep-to-shipment capacity?

• Do they provide technology integrations for complete inventory management and visibility?

• Do they have transparent pricing, or are there additional fees that may be applied (and under what circumstances)?

• Do they offer dedicated support in case unexpected issues arise?

While the end of Amazon’s FBA prep services presents a challenge now, it also creates an opportunity for companies to work toward smarter, more scalable solutions, providing a major upgrade and investment in a better way of doing business over the long term. Particularly with Q4 approaching, now is the time to evaluate a new solution to ensure your company is set up for success this peak season and beyond.

NXTPoint Logistics has 35+ owned and 250+ partner locations nationwide, complete with warehousing, distribution and fulfillment capabilities. To talk with our experts about how we can help your company create a seamless transition plan for your Amazon prep services, click here to get in touch.