How to Set Up In-House Amazon FBA Prep After the 2026 Prep Service Shutdown
Amazon ended U.S. FBA prep services on January 1, 2026. If you relied on Amazon for labeling, poly bagging, or prep corrections, you now need your own reliable system. This guide gives you a practical in-house setup you can run with a small team.
1) What changed in 2026
The biggest operational shift for U.S. sellers this year is simple: prep is now your responsibility before inventory reaches FBA. That means every SKU needs clear rules for packaging, labeling, and carton prep before it leaves your location or prep partner.
For most small and mid-sized sellers, the result is immediate: more operational overhead, but also more control over prep speed and quality.
2) When in-house prep is the right move
In-house prep usually makes sense when:
- You have stable monthly volume and can schedule labor consistently.
- Your catalog has repeat SKUs with predictable prep requirements.
- You want faster rework cycles when Amazon updates packaging rules.
- You need tighter margin control on labor and materials.
If your volume is highly variable or your sourcing is geographically spread out, a prep center may still be the better option. But many sellers can reduce error rates by owning the prep process directly.
3) In-house prep supplies checklist
Start with the essentials below. This covers most private-label and wholesale catalogs.
| Category | What You Need | Why It Matters |
|---|---|---|
| Labeling | Thermal printer, FNSKU labels, carton labels | Fast, readable labels reduce check-in and receiving issues |
| Unit Protection | Poly bags (suffocation warnings), bubble wrap, tape | Prevents damage and compliance flags |
| Carton Prep | Corrugate boxes, dunnage, stretch wrap, pallet wrap | Stabilizes inventory in transit |
| Inspection | Receiving table, QA check sheets, barcode scanner | Catches errors before shipment creation |
| Janitorial | Wipes, gloves, trash liners, floor-safe cleaners | Keeps prep stations clean and consistent |
This supply stack also aligns with common consumables sellers reorder every month. Keep reorder points in your SOP so prep never pauses due to stockouts.
4) A repeatable prep workflow
Step 1: Create SKU-level prep rules
Maintain one source of truth for each SKU: packaging type, label placement, special prep needs, and carton limits. Train your team on this first.
Step 2: Build the station layout
Set up a linear flow: receiving → inspection → prep → labeling → cartonization → outbound staging. Avoid backtracking to improve labor efficiency.
Step 3: Standardize receiving and count verification
Every inbound shipment gets checked against purchase order counts. Variance should be logged immediately, not later during shipment creation.
Step 4: Prep and label by batch
Batching by SKU reduces switching time and labeling mistakes. Print labels in controlled quantities and reconcile labels used versus units packed.
Step 5: Carton QA before shipment creation
Before boxes are closed, run a final count and condition check. Catching one mis-labeled carton at this stage saves rework time and inbound delays.
5) Quality controls that prevent shipment delays
- Use a two-person verification on label format changes.
- Audit the first carton for each SKU batch before full run.
- Track top failure reasons weekly and update SOPs monthly.
- Keep a photo log for high-risk SKUs and bundle configurations.
Most avoidable delays come from inconsistent process, not complexity. Tight SOPs and fast feedback loops are more important than expensive tooling.
Should you DIY prep or outsource?
Use this quick filter:
- Choose in-house prep if your monthly volume is predictable and you can assign a dedicated owner.
- Choose outsourced prep if your volume swings hard month to month or your team is fully constrained.
Some sellers use a hybrid model: in-house for core SKUs, outsourced for seasonal overflow.
Need a done-for-you prep partner?
Stratosphere Prep helps sellers stay compliant and ship faster into Amazon.ca and Amazon.com fulfillment networks.
Get a Prep QuoteFAQ
Did Amazon end U.S. FBA prep services?
Yes. The U.S. prep service shutdown date was January 1, 2026.
What is the minimum setup for in-house prep?
A label printer, prep consumables, inspection table, and documented SKU rules are the core minimum.
How quickly can a small team launch this?
Most teams can build a stable workflow in 5-10 business days with written SOPs and one QA owner.
What causes most FBA prep failures?
Label errors, missing prep documentation, and inconsistent final QA checks.