Ecommerce & Fulfillment Tips

Amazon discontinues FBA prep services; Competitor benefits from Prime Day

Written by Willis | Jul 30, 2025 3:38:18 PM

Amazon is discontinuing prep and item labeling services for all FBA inventory sent to their fulfillment services as of January 1 2026. 

This affects FBA as well as all ancillary services like Amazon SEND. It also applies to smaller services like labeling. Ships in Product Packaging (SIPP) is still allowed and encouraged, but must follow the new guidelines.

Most brands selling FBA are already prepping their own product, or have contracted a service to do it for them. But now they're losing the option to rely on Amazon as a primary or a backup.

For shipments created on or after January 1, those arriving without proper prep or labeling will be ineligible for reimbursement if lost, damaged, or untraceable. Shipments created before Jan 1 will still receive prep services, but after that date Amazon will not be liable for any issues caused by lack of preparation.

 

A surprising winner from Amazon’s Prime Day event - Wal-Mart!

Prime Day this year was not two days but four days, and Retail Brew posits customers used that time to search for other e-commerce options. Wal-Mart held a simultaneous 6-day “Deals” event and saw 24% year-over-year growth - 6 times faster than Amazon’s Prime Day growth this year.

About 8% of Prime Day shoppers also shopped at Walmart, up from 5% in 2024—a clear sign more customers are comparing retailers during major events.

Despite Amazon still dominating the U.S. e‑commerce market (accounting for about $.40 of every dollar spent online), Walmart showed that well‑timed rival promotions can effectively capitalize on Prime Day traffic. Other brands should take note, whether they’re selling on Wal-Mart or timing their own site promotions around larger retailers’.