Imagine your carefully crafted best-selling product being mixed with competitors' identical items in Amazon's warehouses, potentially reaching customers with varying quality standards. This scenario, made possible by Amazon's "commingled inventory" policy, has long concerned sellers about brand reputation risks.
Amazon is addressing these concerns. Effective March 31, 2026, the company will terminate its FBA commingled inventory policy across core marketplaces including the U.S., Canada, Europe, and Japan, while implementing upgraded labeling requirements. This significant change impacts all FBA sellers, particularly those focused on brand integrity and product quality. Non-compliance may result in shipment rejections, delayed listings, or compromised reimbursement claims.
I. Understanding Commingled Inventory and Its Discontinuation
Commingled inventory occurs when different sellers list identical products (with matching UPC codes) using manufacturer barcodes for fulfillment. Amazon consolidates these items into a shared inventory pool, shipping from the nearest warehouse without distinguishing seller origin—a system originally designed to optimize storage and delivery efficiency.
Amazon cites three primary reasons for discontinuing this practice:
- Network Optimization: Amazon's expanded fulfillment network now enables proximity-based shipping without inventory pooling.
- Brand Protection: Commingling made inventory tracking difficult, compromising brand control and quality assurance.
- Operational Efficiency: The change allows eligible brand owners to bypass labeling requirements, reducing labor and material costs.
Key Policy Changes:
- Inventory Segregation: Orders will ship exclusively from a seller's dedicated stock, with returns routed accordingly.
- Differentiated Labeling: Brand-registered sellers and non-branded sellers (including resellers) will follow distinct labeling protocols.
II. New Labeling Requirements by Seller Type
A. Brand-Registered Sellers: Label-Free Privileges
Qualified brand owners meeting these criteria can avoid Amazon labeling requirements:
- Completed Amazon Brand Registry enrollment
- Account holds "Brand Representative" selling role
- Products carry valid GTINs (UPC, EAN, JAN, or ISBN)
Core Benefits:
- GTIN-carrying products may use manufacturer barcodes exclusively (no X00 labels required)
- Inventory remains platform-agnostic (usable across multiple sales channels)
- GTIN-exempt products still require Amazon barcodes
Transition Guide (5 Steps):
- Check current FNSKU type via Seller Central reports (X00 prefixes indicate Amazon labels; B0 prefixes denote manufacturer barcodes)
- Verify brand registration status and GTIN validity
- For new listings: Select "Manufacturer Barcode" during FBA setup
- For existing inventory: Create new SKUs (suggest appending "-GTIN") and transition gradually
- Update default barcode preference in FBA settings
B. Non-Branded Sellers: Mandatory Amazon Labeling
Resellers and non-brand-registered accounts must comply with these requirements:
- All products require Amazon barcodes (X00 labels) regardless of existing manufacturer barcodes
- Non-compliant shipments after March 31, 2026, will be classified as defective
Compliance Steps (4 Steps):
- Identify affected ASINs through inventory reports
- Create new SKUs (suggest appending "-AMZ")
- Apply Amazon-generated X00 labels prominently on packaging
- Update default barcode preference in FBA settings
III. Service Changes and Transition Period
1. Labeling Service Updates
- Amazon will discontinue prep and labeling services for new shipments starting January 1, 2026
- Existing prep requests (created before December 31, 2025) remain valid at $0.55 per unit
2. Transition Rules (January 1 - March 31, 2026)
- Pre-existing unlabeled or manufacturer-barcoded inventory remains sellable
- New shipments may temporarily use either barcode type
- FNSKU low-inventory fees waived in select markets during transition
IV. Frequently Asked Questions
1. What happens if I don't follow the new labeling rules?
Non-compliant shipments after March 31, 2026, may be rejected and become ineligible for inventory reimbursement.
2. Can I sell existing unlabeled inventory after the deadline?
Yes. Inventory already in fulfillment centers or in transit before March 31, 2026, remains sellable.
3. Will creating new SKUs affect product rankings?
No. Product reviews and rankings are ASIN-specific, while seller feedback is account-based.
4. Where do I get Amazon barcodes?
Generated automatically when selecting "Seller-applied labels" during shipment creation.
5. Do authorized brand resellers qualify for label exemptions?
No. Only brand-registered accounts with "Brand Representative" status qualify.