When does Amazon stop offering FBA prep services?

Amazon FBA prep and labeling services end on January 1, 2026. All shipments created after December 31, 2025 must arrive at Amazon warehouses fully prepped and labeled.

What are my alternatives to Amazon prep services?

You have three options: prep at your supplier for $0.10-$0.25 per unit, use a third-party prep center for $0.15-$0.80 per unit, or handle prep yourself with equipment costing $400-$1,200 upfront.

How much will prep costs increase?

Costs vary by method. Supplier prep saves 50-70% vs 3PL. Third-party prep centers charge similar to Amazon but add receiving fees. Self-prep is cheapest long-term but requires labor and equipment investment.

Operations

Amazon Ends FBA Prep & Labeling Services January 1, 2026

Amazon discontinues FBA prep services. Sellers must handle labeling, polybagging, and packaging before shipping to warehouses.

MaxCOO at Nova Analytics

Dec 1, 2025 · 5 min read · 960 words

Updated December 1, 2025

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What's Happening

Amazon announced it's ending FBA prep and labeling services on January 1, 2026. You'll need to either prep your own inventory or use third-party prep centers before sending shipments to Amazon warehouses. Check the effect during the next billing cycle rather than waiting for a quarterly review.

The change affects over 400,000 active FBA sellers who currently use Amazon's prep services. Amazon cited "operational efficiency improvements" as the reason, though sellers suspect it's a cost-cutting measure following the 2025 logistics restructuring.

This is part of Amazon's broader push to shift prep responsibilities to sellers. According to industry seller surveys, 64% of sellers expect this change to majorly impact their operations.

Key Dates & Deadlines

Nov 15, 2025

Amazon announces prep service termination

Sellers notified via email and Seller Central dashboard

Dec 31, 2025

Last day to use Amazon prep services

All shipments created after this date must arrive prepped and labeled

Jan 1, 2026

New prep requirements take effect

Non-compliant shipments will be rejected or charged stranded inventory fees

What Services Are Being Discontinued

Service Type	Current Cost	Alternative Solution
Labeling (per unit)	$0.30 - $0.55	Self-label or 3PL prep center ($0.15-$0.40)
Polybagging (per unit)	$0.40 - $0.80	Pre-bag at supplier or 3PL ($0.20-$0.50)
Bubble wrap (per unit)	$0.60 - $1.20	Supplier packaging upgrade or 3PL ($0.30-$0.80)
Taping (per unit)	$0.25 - $0.50	Package at origin or 3PL ($0.10-$0.30)
Bundling (per bundle)	$1.00 - $2.50	Create bundles before shipping or 3PL ($0.50-$1.50)

Impact on Your Business

Cost Impact

$2.40

Average prep cost increase per unit using 3PL (was $1.45, now $1.85)

Time Delay

3-5 days

Additional lead time for 3PL prep centers vs direct-to-Amazon shipping

Sellers Affected

64%

Percentage expecting major operational impact (Jungle Scout, 2025)

Who Gets Hit Hardest?

→High-volume sellers: those shipping 1,000+ units monthly face $800-$1,200 additional monthly prep costs
→Fragile product sellers: Items requiring bubble wrap or specialized packaging see 40-60% cost increases
→International sellers: those shipping from China or overseas lose the convenience of Amazon handling everything stateside
→Small brands (under $50K/mo): Lack negotiating power with 3PL providers, face higher per-unit rates

Your 3 Options (Ranked by Cost)

Option 1: Prep at Supplier

Lowest Cost

Negotiate with your manufacturer to label, polybag, and pack units before shipping. Most Chinese suppliers will do this for $0.10-$0.25 per unit if you provide labels and bags.

Pros & Cons

Pros: Cheapest option (saves 50-70% vs 3PL), no added logistics steps, maintains current lead times

Cons: Requires trust in supplier quality control, harder to enforce Amazon's strict prep standards, mistakes can lead to stranded inventory

Option 2: Use Third-Party Prep Center (3PL)

Option 3: Self-Prep (DIY)

Time-Intensive

Handle prep yourself with your own team. Buy label printers ($150-$400), poly bags, bubble wrap, and tape. Works for low-volume sellers (under 500 units/month) or brands with warehouse space.

Cost Breakdown

Equipment: $400-$1,200 upfront (printer, scale, supplies)

Labor: $15-$25/hour (2-4 units per hour depending on complexity)

Best for: Sellers doing under 500 units monthly or those with existing warehouse operations

What You Should Do Now

1.
Calculate Your Current Prep Costs
Pull your FBA prep service charges from the last 90 days. Go to Reports → Payments → Transaction View → Filter by "FBA Prep Service." This is your baseline cost to compare alternatives.
2.
Get 3PL Quotes (Start Now, Don't Wait)
Contact 3-5 prep centers before December. Many are already at capacity for Q1. Request quotes for your typical monthly volume. Good providers: Prep.Center, ShipBob, FreightRight.
3.
Negotiate with Your Supplier
Ask if they can label and polybag before shipping. Offer to send labels and packaging materials. Most will agree for $0.10-$0.25 per unit. Get written confirmation of quality standards to avoid Amazon rejections.
4.
Update Your Unit Economics
Recalculate profit margins with new prep costs. Products with margins under 25% may become unprofitable. Consider price increases or discontinuing low-margin SKUs.
5.
Test Your Chosen Solution Before Dec 31
Send a test shipment through your new prep workflow in December. Catch any issues before the January 1 cutoff. Document the process (photos, timelines) so your team can replicate it.

How Nova Helps

Track prep cost changes with Nova's Profit & Loss Analytics. Compare your COGS and prep fees before and after the transition to see the true impact on margins. Use Custom Analytics to identify which SKUs are still profitable with higher prep costs.

Custom Breakdowns lets you group products by prep method (supplier-prepped vs 3PL vs self-prepped) so you can track cost differences across your catalog.

Frequently Asked Questions

Common questions about this topic

Amazon FBA prep and labeling services end on January 1, 2026. All shipments created after December 31, 2025 must arrive at Amazon warehouses fully prepped and labeled.
You have three options: prep at your supplier for $0.10-$0.25 per unit, use a third-party prep center for $0.15-$0.80 per unit, or handle prep yourself with equipment costing $400-$1,200 upfront.
Costs vary by method. Supplier prep saves 50-70% vs 3PL. Third-party prep centers charge similar to Amazon but add receiving fees. Self-prep is cheapest long-term but requires labor and equipment investment.

Verified Sources

All information verified from official Amazon sources and trusted industry analysts as of publication date.

About the Author

Max

COO at Nova Analytics

Max leads operations at Nova Analytics, helping Amazon sellers optimize their business performance through data-driven insights and strategic automation.

Connect on LinkedIn

See your Amazon business clearly.

Try for free Explore pricing

What's Happening

This is part of Amazon's broader push to shift prep responsibilities to sellers. According to industry seller surveys, 64% of sellers expect this change to majorly impact their operations.

What Services Are Being Discontinued

Service Type	Current Cost	Alternative Solution
Labeling (per unit)	$0.30 - $0.55	Self-label or 3PL prep center ($0.15-$0.40)
Polybagging (per unit)	$0.40 - $0.80	Pre-bag at supplier or 3PL ($0.20-$0.50)
Bubble wrap (per unit)	$0.60 - $1.20	Supplier packaging upgrade or 3PL ($0.30-$0.80)
Taping (per unit)	$0.25 - $0.50	Package at origin or 3PL ($0.10-$0.30)
Bundling (per bundle)	$1.00 - $2.50	Create bundles before shipping or 3PL ($0.50-$1.50)

Impact on Your Business

Cost Impact

$2.40

Average prep cost increase per unit using 3PL (was $1.45, now $1.85)

Time Delay

3-5 days

Additional lead time for 3PL prep centers vs direct-to-Amazon shipping

Sellers Affected

64%

Percentage expecting major operational impact (Jungle Scout, 2025)

Who Gets Hit Hardest?

→High-volume sellers: those shipping 1,000+ units monthly face $800-$1,200 additional monthly prep costs
→Fragile product sellers: Items requiring bubble wrap or specialized packaging see 40-60% cost increases
→International sellers: those shipping from China or overseas lose the convenience of Amazon handling everything stateside
→Small brands (under $50K/mo): Lack negotiating power with 3PL providers, face higher per-unit rates

Your 3 Options (Ranked by Cost)

Option 1: Prep at Supplier

Lowest Cost

Negotiate with your manufacturer to label, polybag, and pack units before shipping. Most Chinese suppliers will do this for $0.10-$0.25 per unit if you provide labels and bags.

Pros & Cons

Pros: Cheapest option (saves 50-70% vs 3PL), no added logistics steps, maintains current lead times

Cons: Requires trust in supplier quality control, harder to enforce Amazon's strict prep standards, mistakes can lead to stranded inventory

Option 2: Use Third-Party Prep Center (3PL)

Option 3: Self-Prep (DIY)

Time-Intensive

Handle prep yourself with your own team. Buy label printers ($150-$400), poly bags, bubble wrap, and tape. Works for low-volume sellers (under 500 units/month) or brands with warehouse space.

Cost Breakdown

Equipment: $400-$1,200 upfront (printer, scale, supplies)

Labor: $15-$25/hour (2-4 units per hour depending on complexity)

Best for: Sellers doing under 500 units monthly or those with existing warehouse operations

What You Should Do Now

Calculate Your Current Prep Costs

Pull your FBA prep service charges from the last 90 days. Go to Reports → Payments → Transaction View → Filter by "FBA Prep Service." This is your baseline cost to compare alternatives.

Get 3PL Quotes (Start Now, Don't Wait)

Contact 3-5 prep centers before December. Many are already at capacity for Q1. Request quotes for your typical monthly volume. Good providers: Prep.Center, ShipBob, FreightRight.

Negotiate with Your Supplier

Ask if they can label and polybag before shipping. Offer to send labels and packaging materials. Most will agree for $0.10-$0.25 per unit. Get written confirmation of quality standards to avoid Amazon rejections.

Update Your Unit Economics

Recalculate profit margins with new prep costs. Products with margins under 25% may become unprofitable. Consider price increases or discontinuing low-margin SKUs.

Test Your Chosen Solution Before Dec 31

Send a test shipment through your new prep workflow in December. Catch any issues before the January 1 cutoff. Document the process (photos, timelines) so your team can replicate it.

How Nova Helps

Custom Breakdowns lets you group products by prep method (supplier-prepped vs 3PL vs self-prepped) so you can track cost differences across your catalog.

What's Happening

Key Dates & Deadlines

What Services Are Being Discontinued

Impact on Your Business

Cost Impact

Time Delay

Sellers Affected

Who Gets Hit Hardest?

Your 3 Options (Ranked by Cost)

Option 1: Prep at Supplier

Option 2: Use Third-Party Prep Center (3PL)

Option 3: Self-Prep (DIY)

What You Should Do Now

How Nova Helps

Frequently Asked Questions

When does Amazon stop offering FBA prep services?

What are my alternatives to Amazon prep services?

How much will prep costs increase?

Verified Sources

Max

Related guides

See your Amazon business clearly.

What's Happening

Key Dates & Deadlines

What Services Are Being Discontinued

Impact on Your Business

Cost Impact

Time Delay

Sellers Affected

Who Gets Hit Hardest?

Your 3 Options (Ranked by Cost)

Option 1: Prep at Supplier

Option 2: Use Third-Party Prep Center (3PL)

Option 3: Self-Prep (DIY)

What You Should Do Now

How Nova Helps