Overview

Amazon ended its optional FBA preparation service at the start of 2026, shifting the entire burden of product packaging, labeling, and protection to sellers. Shipments that do not meet Amazon’s prep standards now incur “unplanned prep” fees that are markedly higher than the former voluntary charges, and non‑compliant units may also lose eligibility for the Lost and Damaged Inventory reimbursement program. Sellers must adjust their inbound workflows immediately to avoid costly penalties and protect their reimbursement rights.

Key Points

• Service termination — Amazon permanently discontinued the in‑warehouse bag‑ging, wrapping, and labeling option, requiring sellers to complete all prep before the items reach a fulfillment center.
• Automatic unplanned fees — Any unit that arrives without the required prep triggers a per‑unit charge for corrective actions such as poly‑bagging, bubble‑wrapping, or label application.
• Higher cost structure — Reactive fees are substantially larger than the historic voluntary prep fees, reflecting the extra labor Amazon must expend to fix non‑compliant inventory inside the warehouse.
• Reimbursement risk — Items that fail prep standards may be excluded from the FBA Lost and Damaged Inventory reimbursement program, removing a key safety net for sellers.
• Volume impact — For high‑volume sellers, repeated unplanned prep charges can add up to thousands of dollars per shipment cycle, eroding profit margins.

How the New Prep System Works

1. Pre‑shipment compliance check — Sellers must verify that each SKU follows Amazon’s category‑specific preparation guidelines (e.g., poly‑bagging loose items, attaching suffocation‑warning labels, bubble‑wrapping fragile goods). For example, a seller of scented candles must ensure each candle is placed in a sealed poly bag with a warning label before shipping to the fulfillment center.
2. Inbound shipment creation – When the shipment plan is generated in Seller Central, the system flags any missing prep requirements based on the product’s ASIN. If a seller forgets to attach a FNSKU label to a set of kitchen knives, the plan will highlight the omission, prompting correction before carrier pickup.