Amazon Canada Ends FBA Prep & Labelling Services: What Sellers Need to Do Now

Amazon has officially discontinued its FBA Prep and Item Labeling Service for sellers shipping inventory into Amazon Canada (FBA). Effective from July 1, 2026, sellers are now responsible for ensuring that every eligible product is fully prepared and labeled before it reaches Amazon's fulfillment centers.

While this update only applies to the Canadian marketplace, it represents a significant operational change for businesses using Fulfillment by Amazon (FBA). Sellers who previously relied on Amazon to prepare inventory will now need to update their fulfillment workflows to remain compliant.

What's Changing in this Update?

Until now, sellers could choose Amazon to handle various inventory preparation tasks before products entered the fulfillment network.

From July 1, 2026, Amazon Canada will no longer provide these services for newly created inbound shipments. The discontinued services include:

• FNSKU label application
• Poly bagging
• Bubble wrapping
• Product bundling
• Other eligible FBA preparation services

All required preparation must now be completed before inventory is shipped to Amazon's Canadian fulfillment centers.

Previous Process vs. New Process

• Amazon could prepare and label eligible inventory vs. sellers must complete all prep and labelling before shipment
• Amazon acted as Prep Owner and Label Owner vs. sellers or third-party providers assume full responsibility
• Minimal preparation required before shipping vs. inventory must arrive fully compliant with FBA prep requirements
• Amazon handled eligible prep services vs. Amazon no longer offers prep and labelling for new Canada FBA shipments

Who Will Be Affected by this Update?

This update impacts all sellers shipping inventory into Amazon Canada's FBA network, regardless of the shipping method. It applies to:

• Standard FBA shipments
• Amazon SEND shipments
• Supply Chain Portal shipments
• Inventory destined for Canadian fulfillment centers

Businesses using Amazon Canada should review their current fulfillment process to ensure future shipments meet Amazon's preparation requirements.

What Happens If Inventory Isn't Properly Prepared?

Amazon may still receive inventory that hasn't been prepared correctly, but sellers should understand the associated risks. Improperly prepared inventory can lead to:

• Processing delays
• Receiving issues
• Inventory handling complications
• Increased operational risks

More importantly, sellers may become ineligible for reimbursement if improperly prepared inventory is lost or damaged during the fulfillment process. This makes accurate preparation and labeling more important than ever.

How Should Sellers Prepare for this Update?

With Amazon stepping away from prep and labeling services, sellers should establish a reliable inbound preparation process before creating future shipments. Recommended actions include:

• Review Amazon Canada's latest FBA preparation requirements
• Train warehouse teams on proper packaging and labeling standards
• Partner with a trusted third-party prep center if managing large inventory volumes
• Verify FNSKU labels and packaging before dispatching shipments
• Conduct quality checks to reduce receiving issues at fulfillment centers

Having a consistent preparation process will help minimize delays and reduce operational risks.

Why This Update Matters

Although this announcement affects only Amazon Canada, it reflects Amazon's continued focus on streamlining fulfillment operations and placing greater responsibility on sellers for inbound inventory compliance.

Businesses that prepare inventory accurately before shipping are likely to experience smoother receiving processes and fewer disruptions throughout the fulfillment cycle.

For sellers expanding internationally, this update also highlights the importance of building scalable logistics and warehouse operations that can adapt to evolving marketplace requirements.

Final Thoughts

The removal of Amazon Canada's FBA Prep and Labelling Service marks an important operational shift for FBA sellers. Rather than depending on Amazon to complete product preparation, businesses must now ensure inventory arrives fully compliant with Amazon's packaging and labeling standards.

Reviewing your fulfillment process now will help avoid unnecessary delays, reduce compliance risks, and keep inventory moving efficiently through Amazon's fulfillment network.