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- Amazon discontinues all FBA prep and labeling services effective January 1, 2026
- Sellers must prep inventory themselves or use third-party prep centers
- 64% of sellers expect major operational impact from this change
Nova surfaces every Amazon fee, refund, and margin shift in your live P&L, across 21 marketplaces. Open the live P&L
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. From the agency portfolios we monitor, the cohorts most exposed feel it inside a billing cycle, not a quarter.
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
Amazon announces prep service termination
Sellers notified via email and Seller Central dashboard
Last day to use Amazon prep services
All shipments created after this date must arrive prepped and labeled
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 CostNegotiate 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)
Most PopularShip to a U.S.-based prep center that handles labeling, packaging, and forwarding to Amazon. Companies like Prep Center and ShipBob Specialize in FBA prep.
Typical Pricing
- • Labeling: $0.15-$0.40 per unit
- • Polybagging: $0.20-$0.50 per unit
- • Bubble wrap: $0.30-$0.80 per unit
- • Receiving fee: $30-$60 per shipment
- • Storage: $15-$40 per pallet per month
Option 3: Self-Prep (DIY)
Time-IntensiveHandle 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.
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All information verified from official Amazon sources and trusted industry analysts as of publication date.
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