Amazon has announced a major policy change that will reshape how U.S. sellers operate inside Fulfillment by Amazon (FBA). Starting January 1, 2026, Amazon will no longer provide prep or item labeling services. For online businesses, that means one thing: every unit shipped to an Amazon Fulfillment Center (FC) must be fully compliant before it arrives.
This change introduces new headaches for sellers—but it also creates a clear solution: partnering with an experienced prep and fulfillment provider like Simple Global.
Here’s what’s changing and how Simple Global can help you stay ahead.
What's changing (key facts)
1. End of Amazon prep & labeling (Jan 1, 2026)
- No more bagging, bubble wrap, or suffocation warning application by Amazon.
- No more FNSKU/UPC labeling or carton/pallet label services.
- Sellers must ship fully prepped and compliant inventory into FCs—or risk rejection and costly delays.
How Simple Global helps: We take on the entire compliance process—from product prep and labeling to packaging and palletization. Our facilities are optimized for Amazon’s requirements, so your inventory always arrives ready to move.
2. Peak-season fees (Oct 15, 2025 - Jan 14, 2026)
- FBA, MCF, and RFN rates rise during this period.
- Fees reset to normal on Jan 15, 2026 (same as 2024 non-peak rates).
How Simple Global helps: We can help you stage inventory outside Amazon’s network during peak season, reducing exposure to higher fees. Our multi-channel fulfillment (MCF) solutions mean you can keep selling while controlling costs.
3. Inbound placement service fees
- Sellers still pay for split shipments across multiple FCs.
- Credits exist for “New Selection” ASINs, but fees are here to stay.
How Simple Global helps: We consolidate and optimize shipments before they reach Amazon, reducing split-ship costs. With our placement strategies, sellers can lower fees and simplify logistics.
4. Low-inventory-level fees
- Amazon penalizes sellers who keep lean inventory levels for fast-moving SKUs.
- Exemptions exist for slower movers.
How Simple Global helps: Our inventory management tools give you real-time visibility and alerts, helping you avoid low-stock penalties while keeping storage lean.
5. Seller Fulfilled Prime (SFP) returns
- Open again, but with stricter rules:
- SFP lets sellers keep the Prime badge without FBA.
How Simple Global helps: We’re already built for fast, accurate, and trackable shipping. With our network, sellers can meet SFP standards and win back control from Amazon while still serving Prime customers.
Why sellers shouldn't wait
The January 2026 deadline may feel far off, but in logistics, transitions take time. Waiting until late 2025 to figure out prep and compliance could mean:
- Rejected shipments
- Lost Q4 revenue
- Expensive last-minute fixes
By locking in a partner like Simple Global now, online businesses can:
- Transition smoothly away from Amazon prep services.
- Test and refine workflows well before the deadline.
- Stay compliant year-round without adding internal overhead.
The bottom line
Amazon is shifting responsibility back onto sellers. Prep, labeling, and compliance are no longer optional add-ons—they’re prerequisites for selling on the world’s biggest marketplace.
For online businesses, that’s not a reason to panic. It’s a reason to partner smarter.
Simple Global is built to fill the gap Amazon is leaving behind. From compliance and prep to fulfillment and inventory management, we help sellers stay competitive, profitable, and Prime-ready—without the operational headaches.
