For years, Amazon’s Fulfillment by Amazon (FBA) prep and labeling services have been a lifeline for cross-border sellers, streamlining the complex process of getting goods into warehouses. But a recent announcement has upended this convenience. Starting in 2026, Amazon’s U.S. marketplace will discontinue all FBA prep and labeling services, including paid options. This shift forces sellers to assume full responsibility for product compliance—with non-compliant shipments facing disposal without compensation. More than a service adjustment, this move represents a fundamental challenge to cross-border e-commerce operations.
1. FBA Prep and Labeling: The Former "Safety Net"
While newcomers to Amazon selling might overlook these services, seasoned sellers have long relied on them to mitigate warehouse risks and boost efficiency. Acting as a "backstop," these services ensured products met FBA requirements, standardizing logistics while reducing sorting costs.
Prep Services: Shielding Products from Damage
Amazon’s prep services provided tailored packaging solutions to prevent damage or compliance issues, including:
- Fragile item protection: Bubble wrap or foam padding to minimize breakage risks.
- Liquid sealing: Leak-proofing for liquid products.
- Set item bundling: Securing multi-piece products to prevent separation.
- Other safeguards: Removing conflicting barcodes and verifying packaging integrity.
Labeling: The Gateway to Warehouse Entry
Labels serve as a product’s passport into FBA warehouses. Errors, omissions, or illegible labels can lead to rejections or even removals. Key labeling services included:
- FNSKU barcode application: Printing and affixing unique FNSKU labels to override existing codes.
- Warning labels: Attaching mandatory alerts like "Fragile" or "This Side Up."
- Box markings: Ensuring clear identification for efficient sorting and delivery.
2. Why Is Amazon Stepping Away? The Logic Behind the Shift
Contrary to assumptions, compliance standards aren’t being relaxed—Amazon is simply transferring responsibility to sellers. This policy aims to push sellers toward localized overseas operations, requiring them to either establish their own processes or partner with third-party warehouses. Two key factors drive this change:
Higher Compliance Barriers
Previously, Amazon’s teams handled packaging and labeling compliance, sparing sellers the hassle. Now, sellers—especially smaller ones—must navigate these complexities independently. Mistakes could lead to costly rejections and performance penalties. Building in-house processes or outsourcing to specialized warehouses becomes critical to avoiding these pitfalls.
The Localization Imperative
Prep and labeling are impractical to complete domestically. Long-haul shipping risks damage or label detachment, while Amazon’s evolving rules demand real-time adaptability. Most sellers lack the resources to maintain U.S.-based teams or facilities, leaving two viable paths: self-managed local operations or third-party warehouse partnerships. The latter can handle post-arrival prep, labeling, and compliance checks before forwarding goods to FBA.
3. Survival Strategies: Upgrading Supply Chains
Amazon’s policy effectively filters out sellers with weak supply chains, favoring those with robust localization capabilities. While transitioning to self-managed or third-party solutions may raise costs, it’s now a necessity for long-term viability. Proactive steps include:
Product Selection Adjustments
Prioritize easy-to-prep, low-compliance-cost items, reducing reliance on fragile or liquid products.
Partnering with Reliable Warehouses
Vet third-party warehouses for FBA expertise, ensuring compliant prep and labeling.
Supply Chain Optimization
Collaborate with suppliers to enhance original packaging compliance, cutting downstream costs.
4. Detailed Tactics for Adapting to the New Rules
Sellers must act decisively to stay competitive. Key recommendations:
- Study the policy: Scrutinize Amazon’s official guidelines to grasp timelines and impacts.
- Audit current workflows: Identify vulnerabilities in packaging, labeling, and supply chain responsiveness.
- Choose warehouses wisely: Prioritize locations near FBA hubs, full-service providers, and transparent pricing.
- Reinforce packaging: Use durable materials meeting Amazon’s standards.
- Standardize labeling: Employ professional printers and adhesive labels.
- Strengthen supplier ties: Jointly develop compliant packaging solutions.
5. Conclusion: Embracing Change as an Opportunity
Amazon’s FBA overhaul presents undeniable challenges, but also a chance to refine operations. Sellers who adapt swiftly—by localizing processes and fortifying supply chains—will emerge stronger in the evolving cross-border e-commerce landscape.