Amazon is once again shaking up the logistics world and how shippers work with the e-commerce behemoth. As reported by Supply Chain Dive, “Amazon will stop offering prep and item labeling services on Jan. 1, 2026, for shipments in the U.S. using the e-commerce giant’s fulfillment services” This announcement marks a significant shift in Amazon’s approach to its Fulfillment by Amazon (FBA) services, particularly in light of the recent changes to its prep and labeling services.
To understand this change and its impact, shippers need to know what Amazon PREP is, the implications of the discontinuation of Amazon’s in-house prep program, why Amazon is cutting off support for it, and how to mitigate the effects within a short time span. Ultimately, the need for reliable third-party logistics (3PL) partners has never been more critical, so let’s dig into what’s happening.
Understanding Amazon PREP
Amazon PREP refers to the preparation services that Amazon provides to sellers to ensure their products are ready for Amazon FBA. This includes labeling, packaging, and compliance checks. However, starting January 2026, Amazon will no longer offer these services, pushing sellers to either handle these tasks themselves or seek third-party providers.
The Impact of Changes
The discontinuation of Amazon’s prep services means that sellers must now take full responsibility for preparing their products before sending them to Amazon’s fulfillment centers. This change is expected to streamline operations but also places a greater burden on sellers, particularly those who may not have the resources or expertise to manage these tasks effectively.
Why Has Amazon Eliminated Amazon PREP?
When FBA first launched, most sellers lacked the knowledge or infrastructure to handle labeling and packaging requirements on their own. Amazon PREP filled that gap, helping new sellers take advantage of the platform’s scale without logistical friction.
Over time, however, the majority of sellers have matured operationally and begun handling these tasks independently. With more sellers tapping into the potential of FBA and building their own prep systems, Amazon is phasing out its in-house service. Still, that leaves a sizable group of sellers scrambling—those without the time, tools, or systems in place to take on these requirements are now left exposed.
How to Overcome This Change of Operations
There are not any petitions nor means of preventing this change from Amazon as of August 2025, but that doesn’t mean that shippers are up the proverbial creek without a paddle. Sellers can adapt to these changes by:
- Auditing their inventory to identify products that require FBA prep services.
- Evaluating whether their facilities can accommodate additional labeling and packaging requirements.
- Updating their packaging workflows to ensure compliance with Amazon’s new requirements.
- Considering partnerships with reliable all-in-one 3PL providers, e.g., Kaideemer Inc Solutions, that specializes in Amazon FBA prep and compliance.
Get Amazon PREP-Ready With Kaideemer Inc Solutions
As the e-commerce landscape evolves, so too must the strategies of sellers on platforms like Amazon. The shift away from in-house prep services presents both challenges and opportunities. By leveraging the expertise of 3PL partners, sellers can navigate these changes effectively and continue to thrive in the competitive marketplace.
Connect with an expert in Amazon PREP and FBA services at Kaideemer Inc Solutions.