Amazon has announced a major policy shift that will fundamentally change how third-party sellers operate on its platform. Starting March 2026, the company will discontinue its commingled inventory system for Fulfillment by Amazon (FBA) products, marking the end of an era that enabled widespread "listing hijacking" while ushering in a new phase of brand protection and operational accountability.
The Problem With Commingled Inventory
Under the current system, identical products from different sellers sharing the same ASIN (Amazon Standard Identification Number) are stored together in Amazon's fulfillment centers. While designed to optimize logistics efficiency, this commingling practice created significant challenges:
- Listing hijacking: Unauthorized sellers could piggyback on established product listings without investing in product development or marketing, capitalizing on the original seller's traffic and search ranking.
- Accountability gaps: When counterfeit, used, or defective items appeared in orders, brands often bore the blame despite potentially originating from unauthorized sellers.
- Customer experience risks: Mixed inventory shipments sometimes delivered substandard products that damaged brand reputation and seller performance metrics.
The New System: Physical Inventory Segregation
Amazon's solution centers on "physical inventory authentication" through several key changes:
- Dedicated storage: Each seller's products will be stored separately rather than combined with identical items from competitors.
- Label differentiation: Brand owners may continue using manufacturer barcodes, while unauthorized resellers must apply Amazon's proprietary FNSKU (Fulfillment Network Stock Keeping Unit) labels to distinguish their inventory.
Impact on Unauthorized Resellers
The policy change significantly raises operational barriers for unauthorized sellers:
- Increased costs: Additional labeling requirements add material and labor expenses, while separate storage eliminates shared warehousing cost distribution.
- Performance accountability: Resellers' Inventory Performance Index (IPI) scores will reflect their individual sales and stock management, potentially restricting storage capacity for poor performers.
Advantages for Brand Owners
Legitimate brands stand to benefit from several protections:
- Reputation safeguards: Physical separation prevents quality issues from unauthorized products being attributed to the brand.
- Cost efficiency: Continued use of manufacturer barcodes maintains labeling cost advantages.
- Traffic protection: Brand-building investments in product listings become harder for unauthorized sellers to exploit.
The Shift to Sophisticated Operations
The policy change accelerates Amazon's evolution toward sophisticated marketplace dynamics, requiring sellers to focus on:
- Product differentiation: Developing unique features that avoid commoditized competition.
- Brand equity: Building customer loyalty through distinctive brand identities.
- Listing optimization: Maximizing search visibility and conversion through content refinement.
- Inventory precision: Balancing stock levels to prevent shortages or overages.
- Customer experience: Enhancing service quality to drive repeat purchases.
Technology's Role in the Transition
Cross-border e-commerce ERP systems are emerging as critical tools for navigating these changes, offering capabilities such as:
- Multi-channel fulfillment: Coordinating FBA inventory across Amazon and external sales platforms.
- Inventory planning: Intelligent replenishment recommendations across local, overseas, and FBA warehouses.
- Financial reporting: Automated inventory accounting with batch-level cost tracking.
- Unauthorized seller monitoring: Continuous surveillance of product listings and buy box status.
This policy shift represents Amazon's latest step toward marketplace maturation, rewarding sellers who invest in product quality, brand development, and operational excellence while raising barriers for opportunistic resellers. The transition underscores the platform's evolution from a wild-west bazaar to a sophisticated retail ecosystem where sustainable business practices determine long-term success.