Amazon Ends Prep. Now It’s Time for Real Logistics to Step Up

In July 2025, Amazon quietly announced a major operational shift: it will discontinue prep services, including labeling, kitting, poly-bagging, and bundling, for most third-party sellers starting January 1, 2026.

Imagine you’re a mid-sized beauty brand shipping 500 units daily via Amazon FBA. You used to rely on Amazon to prep your sets, applying barcodes, poly-bagging SKUs, kitting bundles. Suddenly, that support disappears. Your products are stuck, non-compliant with Amazon’s intake standards. The clock is ticking.

That’s exactly what thousands of sellers are now facing. Only a narrow list of ASINs enrolled in Amazon’s new Prepped Label Program will remain eligible for internal prep. For everyone else, the pressure is on finding fast, compliant, and cost-effective solutions, or risk delays, chargebacks, or even delisting.

But this isn’t just an e-commerce shake-up, it’s a logistics industry wake-up call.

What Is Amazon Prep, Exactly?

Amazon Prep Services refer to the packaging and labeling tasks required for products to be accepted into Amazon’s fulfillment network (FBA). This includes:

• Labeling: Applying scannable FNSKU barcodes on each item.

• Poly-Bagging: Wrapping products in plastic bags to prevent damage or contamination.

• Bundling & Kitting: Grouping multiple products into one sellable unit (like a skincare set).

• Packaging Inspection: Ensuring products meet Amazon’s safety and compliance standards.

Starting January 1, 2026, Amazon will phase out these services for most sellers. The good news? There’s still time to prepare, and those who act now will have the upper hand.

Why This Matters for the Warehousing Industry?

This move is more than a logistics hiccup, it’s a signal. Brands can no longer rely solely on Amazon for upstream logistics. The industry is now looking for third-party logistics (3PL) providers to fill the prep and fulfillment gap.

Here’s how it’s reshaping the 3PL landscape:

✅ Surging Demand for Kitting & Labeling ServicesSellers now need partners who can perform product preparation in accordance with Amazon’s strict guidelines, all with precision and speed.

✅ Rising Importance of Multi-Client Fulfillment ModelsShared-space operations like Inland Star’s Harrisburg and Los Angeles sites are ideal for e-commerce brands scaling up or down quickly without long-term commitments.

✅ Visibility & Compliance Take Center StageAmazon’s policies are notoriously strict. 3PLs with real-time inventory control, barcode accuracy, and retail compliance protocols will lead the way.

✅ Increased Need for Coastal and Regional Distribution OptionsWith the loss of in-network prep, proximity to ports and high-volume fulfillment zones becomes critical. Inland Star’s bi-coastal infrastructure offers brands geographic leverage.

Inland Star: Filling the Prep & Fulfillment Gap

At Inland Star, we’re being built for this moment.

Whether you’re transitioning away from Amazon prep services or scaling your e-commerce logistics, our facilities in California and Pennsylvania offer:

• Pick, Pack & Ship Excellence

  
  

  Including poly-bagging, labeling, kitting, same-day shipping, and retail compliance.

• Multi-Client & Dedicated Flexibility

  
  

  Share space or secure your own. We offer both models to meet evolving needs.

• Real-Time Inventory Accuracy

  
  

  With barcode scanning, custom reporting, and WMS/EDI integration.

• Ownership-Driven Reliability

  
  

  As an ESOP company, our employee-owners take accountability seriously. We don’t just ship, we Do It Right®.

Ready to Rebuild Your Prep Strategy?For support in navigating this transition, contact Doug Draper, Director of Business Development, at ddraper@inlandstar.com or call 559-512-6304. Discover how Inland Star can fill the gap Amazon left behind, with certified, scalable, and precise fulfillment you can count on.