Amazon FBA to End 'Commingling Model' in March 2026, Significantly Simplifying Inventory Management for Brand Sellers

Ebrun Exclusive, December 14: Amazon has officially announced that it will terminate the long-standing FBA "Commingling" model effective March 31, 2026. This change means that inventory from different sellers will no longer be mixed, granting brand sellers greater control over their own products while maintaining fast delivery capabilities. Amazon stated that this move aims to reduce the risk of counterfeiting, enhance brand protection, and provide sellers with more flexible inventory management solutions. According to the announcement, sellers who have registered their brands and hold a "Brand Representative" status will no longer need to apply Amazon barcode labels (FNSKU) to products that already have manufacturer barcodes, significantly simplifying the inventory management process. However, unregistered brands or resellers must apply Amazon barcodes to each FBA product, even if the product already has a manufacturer barcode. For products without manufacturer barcodes, all sellers are required to apply labels. This measure helps prevent counterfeit goods from entering Amazon's system and ensures platform compliance. The so-called "Commingling" model was a policy implemented by Amazon to optimize warehouse space and shorten delivery times. FBA warehouses would mix inventory from different sellers for the same ASIN and rely on barcodes to distinguish each seller's products. However, this model caused various inconveniences for brand sellers. First, it increased costs, as brand sellers had to apply FNSKU labels to each product even if they already had manufacturer barcodes, resulting in high labor and material expenses. According to Amazon estimates, brand sellers spent approximately $600 million on relabeling in the past year alone. Second, it reduced flexibility. Brands selling both on Amazon and their own websites had to pre-allocate inventory quantities to avoid confusion, making inventory management complex and prone to stockouts or overstock issues. Third, it heightened risks. Even official brand products could be mixed with goods from resellers or other sellers, leading to counterfeit, damaged items, or pricing conflicts, which could harm brand reputation. Lastly, commingling increased operational complexity, as brand sellers might need to periodically relabel or reorganize inventory, adding extra burdens to warehouse and logistics management. Industry analysts note that while discontinuing the "Commingling" model may result in slightly higher fulfillment costs for some sellers, brand sellers will gain greater control over product authenticity and inventory integrity, reduce expensive FNSKU labeling expenses, and enjoy more flexible cross-channel inventory management. Additionally, this move is part of Amazon's strategy to address regulatory scrutiny and retain high-quality sellers in a competitive environment, strengthening brand protection, narrowing the advantages of resellers relative to official brands, and thereby improving overall market authenticity and consumer trust. Ebrun will continue to track this development. For more information related to this article, please scan the QR code to follow the author on WeChat.