The End of FBA Prep & What It Means for Your Business

Understanding Amazon’s FBA Prep Program

Amazon’s FBA Prep was created to help sellers meet the strict packaging and labeling requirements before products enter Amazon fulfillment centers. The program offered services such as repackaging, poly-bagging, bubble wrapping, and applying FNSKU barcodes.

For many e-commerce businesses, especially smaller sellers, FBA Prep was a lifeline. It reduced operational headaches and ensured compliance with Amazon’s standards without building in-house capabilities. In short, it made selling on Amazon simpler and faster.

Why Amazon Is Ending FBA Prep

Amazon’s decision reflects a broader shift in its fulfillment strategy. By phasing out FBA Prep, Amazon is putting more responsibility back on sellers and their partners to arrive “ready to fulfill.”

There are a few key reasons behind this move:

• Operational efficiency: Amazon wants to keep fulfillment centers focused on order fulfillment, not packaging or prep services.
• Cost pressures: Rising labor and logistics costs make prep services less attractive to Amazon.
• Industry alignment: Across e-commerce, sellers are increasingly expected to own compliance and readiness before handing inventory to distribution partners, especially for sellers shipping from the United States, who must comply with all domestic fulfillment requirements.

How the Change Impacts E-Commerce Sellers

For sellers, this change means adjustments to daily operations. Without FBA Prep, businesses must ensure every shipment, including FBA shipments, meets Amazon’s requirements before it arrives. This includes proper packaging and accurate inventory management through Seller Central.

If sellers fail to adapt quickly, they risk:

• Delays: Non-compliant shipments can be rejected or sidelined.
• Higher costs: Errors often lead to rework fees or forced returns.
• Customer dissatisfaction: Late or canceled orders can harm ratings and trust.

The takeaway: ignoring this change could directly affect both sales performance and brand reputation.

Alternatives to Amazon FBA Prep

The end of FBA Prep doesn’t mean sellers are out of options. There are several ways to fill the gap:

• Partner with a third-party logistics (3PL) provider: Many 3PLs already specialize in an Amazon FBA prep service, offering everything from kitting to labeling.
• Set up in-house prep operations: Sellers with the resources can bring prep functions under their own roof, though this requires labor, space, and expertise.
• Outsource to specialized prep centers: Dedicated Amazon prep centers are designed to ensure shipments meet all compliance standards before arriving at Amazon fulfillment centers, with an emphasis on quality control and proper labeling.

Key Steps to Transition Away from FBA Prep

The businesses that navigate this transition smoothly will be the ones that plan ahead. Here are three steps to consider:

1. Assess your current process – Map how inventory moves from suppliers to Amazon today, and identify where prep tasks currently occur.
2. Find and vet new solutions – Whether it’s a 3PL partner or an Amazon FBA prep center, evaluate providers based on cost, compliance, scalability, and geographic reach.
3. Communicate clearly – If fulfillment changes may affect timelines, keep customers informed to preserve trust.

How Slotted Helps Businesses Navigate Fulfillment Changes

At Slotted, we understand that fulfillment transitions can feel daunting. That’s why we make it structured and clear.

• Reliable 3PL partnerships: We connect brands with vetted 3PL partners who are already equipped for Amazon prep services, inventory management, and compliance at Amazon fulfillment centers.
• Streamlined onboarding: Our tools help you evaluate and select providers with confidence—no guesswork, no wasted time.
• Future-proof solutions: With structured data, reporting, and scalability tools, we ensure your fulfillment strategy, packaging, and inventory adapt as your business grows.

Amazon’s shift away from FBA Prep is a big change, but it doesn’t have to be disruptive. With the right partners and processes, you can turn it into an opportunity to build a stronger fulfillment foundation.

Ready to find the right 3PL partner for your Amazon business? Join Slotted today and take the complexity out of inventory management and Amazon prep services.