What changed
Third-party warehouses that prep, label and forward FBA inventory
When
Amazon ended US FBA prep services on January 1, 2026
Who it affects
FBA sellers, especially importers, resellers and wholesale sellers
What to do
Decide in-house versus prep center before your next inbound shipment

Key takeaways

  • Amazon stopped prepping and labeling US FBA shipments on January 1, 2026.
  • Resellers must sticker every unit for shipments sent on or after March 31, 2026.
  • Choose a prep center on accuracy and turnaround, then test with a small shipment.
  1. 1Supplier ships

    Goods go to the prep center

  2. 2Inspect

    Count and check for damage

  3. 3Label and pack

    FNSKU, bags, bundles

  4. 4Build shipment

    Cartons labeled in Send to Amazon

  5. 5Forward to FBA

    Delivered to assigned centers

What is an Amazon prep center?

A prep center sits between your supplier and Amazon. Your factory or wholesaler ships to the prep center, its team checks the goods, applies labels and packaging, builds compliant boxes and sends them to the fulfillment centers Amazon assigns. Many also store overflow stock and ship FBM orders.

Prep centers are independent businesses. They are not run by Amazon, although Amazon does point sellers to vetted providers when it explains prep options.

Why prep centers matter more in 2026

Two changes pushed prep back onto sellers. First, Amazon announced that starting January 1, 2026 it would no longer offer prep and item labeling services for FBA shipments in the US store. That covers FNSKU labels, bundling, bagging and other compliance prep, including inventory routed through Amazon Warehousing and Distribution, Amazon Global Logistics, Amazon Send and Supply Chain Portal. Shipments created after that date that arrive without proper prep and labels are not eligible for reimbursement if the units are damaged or cannot be traced.

Second, Amazon ended commingling for inventory shipped on or after March 31, 2026. Brand owners with the Brand Representative role can use manufacturer barcodes, but resellers must apply Amazon barcode stickers to every unit. Our Amazon commingled inventory guide explains who is affected.

2026 changes behind the prep shift

  1. Amazon ends US FBA prep and item labeling

  2. Commingling ends; resellers sticker every unit

  3. Unprepped units lose reimbursement eligibility

What services does a prep center offer?

Service menus vary, but most centers price each task separately so you only pay for what a product needs.

  • Receiving and counting inbound cartons
  • Inspection for damage, wrong items and short shipments
  • FNSKU labeling and label cover-up of old barcodes
  • Polybagging, bubble wrap and box-in-box for fragile items
  • Bundling and kitting with sold-as-set labels
  • Carton labeling and building shipments in Send to Amazon
  • Overflow storage and FBM order fulfillment
  • Photos and reports for reimbursement evidence

How much does an Amazon prep center cost?

Most centers charge per unit for basic labeling and add fees for bagging, bundling, oversize items and storage. Some add receiving fees per carton or pallet and monthly minimums. Prices differ widely by region, volume and complexity, so request a written quote based on your actual SKUs rather than relying on headline rates.

When you compare quotes, include freight to and from the center, storage and any monthly minimum. A cheaper per-unit price can cost more overall if the center is far from your port or Amazon's receive centers. Build the result into your product margin alongside your Amazon FBA fees.

In-house prep versus a prep center

Doing prep yourself gives full control and avoids a middleman, but it needs space, labor and a label printer, and it scales poorly in Q4. A prep center adds a per-unit cost but turns prep into a variable expense and catches supplier mistakes before Amazon does. Many brands split the work: simple SKUs in-house, fragile or bundled SKUs at a prep center.

In-housePrep center
No per-unit service fee
Scales easily in Q4
Catches supplier errors early
Full control of handling
Needs your own space and staff

Many brands split simple and complex SKUs between both.

How to choose a prep center, step by step

Treat the choice like hiring a warehouse partner. The cheapest quote matters less than accuracy, speed and communication.

  • Shortlist centers near your port of entry or supplier
  • Ask for turnaround times from receipt to shipment
  • Confirm they follow current Amazon packaging and labeling rules
  • Check insurance, security and how they handle damaged goods
  • Ask for sample reports, photos and software access
  • Run a small test shipment before moving volume
  • Agree service levels and error handling in writing

Red flags to watch for

Be wary of centers that cannot explain the 2026 labeling and commingling changes, will not share photos of received goods, or quote one price for every product. Slow replies during a trial usually get worse in peak season. Errors at the prep stage show up later as receiving delays, inbound defect fees or lost units, so they are expensive to ignore. Our Amazon packaging requirements guide lists the rules a good center should know by heart.

How prep fits your inventory plan

A prep center adds days to your lead time, so add them to your reorder points. Keep a small buffer at the center to refill FBA quickly when restock limits allow, and track the units shipped to Amazon against what Amazon receives so shortages are claimed on time.

PPC Spider's FBA inventory management service plans reorders around real lead times, monitors stock in SpiderOS and files reimbursement claims monthly. If you want your current setup reviewed, start with a free Amazon audit.

Sources

  • Packaging Insights: Amazon ends US prep and labeling services in 2026 (packaginginsights.com/news/amazon-fba-packaging-labeling-changes-2026.html)
  • Amazon Seller Forums: FBA prep services discontinued in the US (sellercentral.amazon.com/seller-forums/discussions/t/6075d02b-a903-45ca-a70a-4f32ae81a6b8)
  • Amazon Seller Forums: Commingling ends March 31, 2026 (sellercentral.amazon.ca/seller-forums/discussions/t/cd352647-7a0d-426f-83e7-e3dd4add6c5c)
  • PPC Land: Amazon ends FBA commingling on March 31 (ppc.land/amazon-ends-fba-commingling-on-march-31-what-really-changes-for-sellers/)
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