Amazon has announced a landmark policy change that will fundamentally alter how sellers manage inventory on its platform. Effective March 31, 2026, the company will permanently discontinue its shared inventory system, marking a significant shift in its marketplace strategy.
The End of Shared Inventory: A Fundamental Shift
The shared inventory model, which allowed products with identical UPCs to be commingled in Amazon's fulfillment centers, will be replaced by a system of physically segregated inventory. This change addresses long-standing concerns about product quality and accountability:
- Quality control: Prevents commingling of substandard products with genuine inventory
- Accountability: Establishes clear responsibility for product quality and customer service
Key Changes and Their Impact
The policy change will affect different types of sellers in distinct ways:
1. Brand-Registered Sellers: Streamlined Operations
- Manufacturer barcodes (UPC/EAN) will be sufficient for fulfillment
- Eliminates requirement for FNSKU labels, reducing operational costs
- Increases responsibility for product quality control
2. Resellers: Increased Operational Burden
- Mandatory FNSKU labeling for all products
- Higher operational costs for labeling and packaging
- Greater risk of inventory rejection due to labeling errors
3. Labeling Services: Seller Responsibility
- Amazon will discontinue FBA prep and labeling services by January 1, 2026
- Sellers must ensure proper packaging and labeling before shipment
- Non-compliant inventory may be discarded without compensation
Amazon's Strategic Objectives
The policy changes reflect Amazon's broader marketplace strategy:
- Enhanced brand protection against unauthorized resellers
- Transfer of non-core operations to sellers
- Inventory efficiency improvements through shorter removal cycles
Preparing for the Transition
Sellers should consider these strategic adjustments:
- Brand owners: Verify UPC/EAN quality and strengthen quality control
- Resellers: Explore authorized distribution agreements or private label development
- All sellers: Establish compliant packaging and labeling processes
The changes represent both challenges and opportunities for Amazon sellers. Those who adapt effectively to the new requirements may gain competitive advantages in the evolving marketplace landscape.