Amazon Policy Change: What You Need to Do Before January 2026

Amazon has announced two significant policy updates that will impact third-party sellers across its U.S. marketplace. First, effective January 1, 2026, Amazon will discontinue all prep and item-labeling services for Fulfillment by Amazon (FBA) shipments, including inventory sent via AWD, Amazon Global Logistics, Amazon SEND, and the Supply Chain Portal.
Second, starting August 4, 2025, Amazon will roll out a star-only seller feedback system, allowing customers to leave ratings without written comments. This change also removes the ability to appeal these ratings via Feedback Manager.

Policy Change #1: FBA Prep & Labeling Services End Jan 1, 2026

From January 1, 2026, all inventory must be fully prepped and labeled by sellers or certified third-party logistics (3PL) providers before shipment. Amazon will no longer accept or process items that are not prepared. Shipments created before this date will still receive prep services, even if they arrive afterward. Improperly prepped shipments created after January 1 will not be eligible for reimbursement if damaged or lost.

Impact on Sellers:

• Operational Shift: Sellers lose Amazon’s “prep lifeline” and must manage labeling, kitting, and compliance independently.
• Financial Exposure: Improperly prepared inventory may be rejected or lost, without reimbursement.
• Competitive Divide: 40–60% of sellers could struggle to adapt without internal logistics or reliable 3PL partners.
• 3PL Demand Spike: A surge in certified 3PL usage is expected, raising operational costs.

What You Should Do Now:

• Audit Preparation Capabilities: Assess whether your team can handle Amazon’s strict prep requirements.
• Secure 3PL Partnerships Early: Engage certified partners to meet the January 2026 deadline.
• Training & Quality Control: Ensure teams and 3PLs understand Amazon’s compliance rules.
• Inventory Planning: Use Q4 2025 to test new workflows and scale your prep operations.

Policy Change #2: Star‑Only Seller Feedback Starts August 4, 2025

Amazon’s new feedback system will allow customers to submit star ratings without written comments. While the change encourages more ratings, it removes context from reviews and disables appeals for ratings-only feedback. Sellers must now rely on the “Report a violation” process for disputes (PPC Land, Intero Digital).

Impact on Sellers:

• Loss of Contextual Feedback: Harder to diagnose customer issues without written input.
• No Appeals for Unfair Ratings: Especially problematic for FBA sellers when issues stem from Amazon’s logistics.
• Performance Risks: Order Defect Rate, Buy Box eligibility, and account health could suffer from unjust low ratings.

What Sellers Should Do:

• Improve Customer Service & Fulfillment: Reduce chances of low-star ratings at the source.
• Monitor Feedback Closely: Track metrics and identify rating drops early.
• Use “Report a Violation” Carefully: Only file when you have evidence of policy violations.

CedCommerce not only provides tools and guidance for Amazon sellers but also offers end-to-end Amazon account management services. Our experts work as an extension of your team to:

• Monitor account health in real time and address risks before they impact your metrics.
• Optimize listings, pricing, and ads to maintain Buy Box visibility and competitiveness.
• Manage policy compliance and appeals where applicable, ensuring your account stays in good standing.
• With CedCommerce managing your account, you can focus on growth while we handle the complexity of adapting to Amazon’s evolving policies.

Bottom Line

With Amazon tightening both operational control (FBA prep services) and feedback management (star-only reviews), sellers face increased accountability and reduced support mechanisms. These changes mean you must be proactive: strengthening logistics, improving service quality, and closely monitoring performance metrics.

Partner with 3PL providers that offer both prep services and inventory monitoring to stay compliant and safeguard your margins. Use the coming months to strengthen your operations; act now to turn these policy changes into a competitive edge.

Sources: PPC Land, eCommerceBytes