Amazon Ends Commingling Program After Years of Seller and Brand Complaints

At its Annual Accelerate Seller Conference in Seattle (September 2025), Amazon officially announced it will phase out its controversial commingling Amazon program later this year. Nadya Dhalla, Amazon’s Director of Supply Chain, stood on stage and declared “the end of commingling,” a statement that drew loud applause from sellers in attendance.

The decision is one of the most significant pro-brand steps Amazon has taken in years. Marketplace analysts, brand protection advocates, and long-time retail consultants agree this move signals a clear shift in Amazon’s priorities: from resellers and arbitrage sellers toward protecting brand owners and their customers.

This blog is all about what commingling Amazon was, why it sparked so much controversy, the role played by brands like Nike and Johnson & Johnson, and what sellers need to do now that the policy is ending.

What is Amazon Commingle?

Amazon Commingling, also known as stickerless inventory, allowed sellers to ship products into Amazon’s warehouses without applying a unique Fulfilled by Amazon barcode. Instead, items were identified only by the manufacturer’s UPC. Once in Amazon’s fulfillment centers, identical items from multiple sellers were pooled together.

The advantage of Amazon commingled inventory was speed and efficiency. Customers received their products faster because Amazon could ship whichever unit was closest to them, regardless of which seller originally sent it in. Sellers also saved money and time by skipping the Amazon manufacturer barcode commingling program.

But this system carried risks. If even one bad actor sent in counterfeit, expired, or damaged stock, the entire Amazon commingling inventory pool was compromised according to The Wall Street Journal. Customers who bought directly from a reputable brand could unknowingly receive an inferior item. Apart from the increased Amazon seller complaints, for the brand, the damage to trust and reputation was immediate.

Brands Affected by Commingled Amazon Program

Amazon commingling has been an issue for brands. Not only the small ones but the giants also affected badly due to the commingled Amazon. Following are a few of the Amazon brand complaints which somehow made Amazon move the needle on this commingling policy. 

1. Johnson & Johnson in 2013

More than a decade ago, Johnson & Johnson pulled many of its consumer products from Amazon. The company was concerned that third-party sellers were shipping expired Tylenol, damaged Band-Aids, and baby care items in poor condition. Their frustration highlighted a deeper issue that Amazon commingling is stripping brands of their ability to guarantee product quality.

2. Nike in 2019 

Nike’s case became even more public. In 2019, Nike walked away from Amazon after growing frustrated with counterfeiters and unauthorized resellers. Commingling Amazon made it nearly impossible to maintain brand integrity. 

In 2025, Nike returned to Amazon under a direct sourcing deal. This time, Amazon agreed to buy inventory directly from Nike and limit which sellers could list certain products. The shift demonstrated Amazon’s willingness to restructure relationships with major brands when counterfeit risks became too large to ignore.

3. Smaller Brands

Nike and J&J were not alone. Kitchenware makers like Tovolo, cutlery brands like Wüsthof, and electronics leaders like Bose have all been tied up in Amazon counterfeit products or quality-control headaches linked to pooled inventory. For smaller companies, even a handful of Amazon complaints could derail momentum or ruin consumer trust overnight.

Why Amazon Pulled the Plug in 2025

So why end commingling now, after more than a decade? Here are the reasons for the end of Amazon commingling: 

1. Operational Improvements

Nadya Dhalla explained that most products can now achieve the same fast shipping speeds without commingling. In her words, the resources sellers used to spend on stickering “can be reinvested in growing your business.”

2. Leadership Push 

Dharmesh Mehta, Amazon’s Vice President of Selling Partner Services, said he had wanted to end commingling Amazon for years. A fresh cost-benefit analysis showed that the original advantages no longer outweighed the growing downsides.

3. Amazon Seller Complaints 

Major companies like Nike and Johnson & Johnson had already demonstrated they were willing to walk away from Amazon. Amazon brand complaints from groups such as the American Apparel & Footwear Association (AAFA) added more pressure to act.

4. Analyst Consensus

Marketplace Pulse’s Ben Donovan summed it up well: “It signals a continued shift away from resellers towards brand owners. Amazon is certainly becoming a tougher environment for resellers now.”

5. Trust Factor

As Modern Retail reported, Amazon’s decision reflects a broader strategy to prioritize trusted brand relationships while reducing Amazon counterfeit products risks. Simply put, Amazon wants both consumers and major brands to feel confident buying and selling on its platform.

What the Change Means for Brands and Sellers

We all are clear on the end of commingling Amazon must impact the overall Amazon’s ecosystem be it brands, third-party sellers, or customers. Will it be a good one or a bad one, continue reading to find out: 

1. For Brands

This is a win. With pooled inventory gone, the Amazon supply chain changes completely. Brand owners will have greater control over their supply chains and fewer Amazon complaints regarding counterfeit products. The move aligns with other Amazon initiatives, such as restricting unauthorized sellers on big names like Nike and strengthening anti-counterfeit programs.

2. For Third-Party Sellers

No more commingling Amazon will bring new challenges for some third-party sellers. Specially the ones who relied on commingling Amazon to cut costs must now invest in labeling, packaging, and compliance. Those who built their businesses around arbitrage or gray-market sourcing will face an even steeper uphill climb.

3. For Customers

Amazon stop commingling news has both good and challenging aspects for the customers. It’s true that the shopper will be seeing fewer counterfeit and expired goods and a more consistent buying experience. But they also have to deal with issues like fewer bargains and tighter availability since unauthorized resellers may be locked out of certain categories.

4 Action Steps for Sellers to Stay Competitive

1. Audit Your Amazon Catalog 

Begin by reviewing your full product catalog to identify which SKUs were previously being shipped under commingled Amazon conditions. Look closely at listings that used Amazon manufacturer barcode commingling program instead of FNSKU labels. 

Pay attention to fast-moving products, high-value items, and anything in categories that are often targeted by counterfeiters, such as health, beauty, and electronics. Create a list of these SKUs so you know exactly where you need to make changes before Amazon enforces the policy shift.

2. Transition to FNSKU Labeling 

Every unit will now need its own unique Fulfilled by Amazon (FNSKU) barcode. If you have the ability to print and apply these labels in-house, it’s high time to start setting up processes and training staff. 

If not, Amazon provides an FBA Label Service for a per-unit fee, and several third-party prep centers specialize in bulk labeling. Weigh the cost against your internal labor capacity and choose the option that keeps your operations moving without bottlenecks.

3. Strengthen Supply Chain Transparency

Now is the time to re-evaluate how you source inventory. Commingling Amazon made it easier for unauthorized or gray-market sellers to blend in, but with that loophole closing, sellers will face more scrutiny. 

If you source through distributors, make sure they are recognized and authorized by the brand. Keep invoices, lot numbers, and authenticity documentation organized and ready for Amazon if they request proof. If you are a private-label seller, double down on quality checks with your manufacturer to avoid returns or authenticity related Amazon complaints.

4. Stay on Top of Amazon’s Policy Deadlines

Amazon is rolling this change out in phases by category, and deadlines will vary. Keep a close eye on announcements through Seller Central, Amazon Accelerate updates, and direct notifications. Missing a compliance date could mean your listings get flagged, suppressed, or even suspended. 

Build an internal calendar or workflow to track these changes so your team stays ahead. Consider assigning one team member specifically to monitor Amazon policy updates so that nothing slips through the cracks.

Costs and Benefits

The end of Amazon commingling will bring added costs, especially for smaller sellers. Labeling and packaging requirements may increase operational expenses and slow down warehouse processing.

However, the benefits of authenticity, fewer counterfeit complaints, and improved consumer trust outweigh the costs. Brands will be better protected, and sellers who adapt quickly can differentiate themselves by offering reliability.

Best Practices After the End of Commingling Amazon

After this announcement from Amazon, it’s pretty clear that it’s an end for unauthorized sellers. However, even the authorized resellers have to look upon their existing systems and adapt the new practices to not fall into the list of fishy ones. Below are the best practices sellers can adapt to deal with the ongoing challenges: 

1. Enroll in Amazon Brand Registry for Stronger Protection

The Brand Registry is one of the most powerful tools Amazon offers to safeguard intellectual property. By enrolling, you gain access to features like automated counterfeit detection, the ability to report violators directly, and more control over your product detail pages. This is especially important as commingling ends, because it helps ensure that only your approved product content is shown and that copycats cannot hijack your listings.

2. Apply for Brand Gating to Restrict Unauthorized Resellers

Brand gating adds an additional layer of defense by making it harder for unauthorized third parties to sell your products without proof of legitimacy. When enforced, resellers must show invoices or authorization letters before listing your products. For premium or high-risk categories, this is invaluable. It prevents rogue sellers from slipping in poor-quality or counterfeit stock that could harm your reputation.

3. Maintain Documentation 

Sellers need to be really vigilant with the documentation to prove their authenticity with this shift. In order to do this, it’s advised to keep digital and physical copies of invoices, purchase orders, and lot numbers for each batch of goods you send to Amazon’s fulfillment centers. This will help you if Amazon flags any listings of yours as counterfeit and also strengthen your credibility among customers. 

4. Check for Quality  

As the end of commingling Amazon is primarily linked to quality, you need to be careful with the quality checks. Especially, if you rely on distributors rather than direct manufacturer relationships, you need to build in a process to inspect products before they ship to Amazon. This includes random unit checks, third-party inspection services, or lab testing for certain categories like health and beauty. 

5. Excel Your Customer Service 

For Amazon, customers come first. So, one review about the compromised quality may put your store at stake. To avoid all this, respond promptly to inquiries, offer refunds or replacements where appropriate, and keep communication clear and professional. 

Remember that if your profile has a good number of reviews, you will be considered as an authentic seller, both by Amazon and customers as it signals the Amazon algorithm that you are an authentic one. 

Challenges Associated with End of Commingling Amazon 

The core challenges that comes with end of commingling Amazon are: 

1. Inflated Prices

The shift away from commingling Amazon means sellers will need to cover the expense of labeling every unit with an FNSKU barcode. This can add up quickly for high-volume sellers. To keep costs under control, invest in bulk label printing solutions or negotiate discounted rates with third-party prep centers that handle labeling in large quantities. For smaller sellers, Amazon’s own FBA Label Service may still be cost-effective. The key is to calculate which option saves more money when factoring in labor, time, and error reduction.

2. Complexity in Fulfillment 

As pooled inventory is no more, sellers need to ensure that their stock is properly labeled and tracked to avoid disruptions. This creates an extra layer of complexity in inventory management and replenishment. A missed label or an inaccurate SKU count could result in suppressed listings or delayed shipments. 

To mitigate this, sellers should implement stronger inventory planning systems, schedule replenishments earlier than before, and consider using Amazon’s inventory management tools or third-party software to maintain accuracy and avoid costly delays.

3. Internal Adaptation

If your team is already comfortable with this Amazon commingling system, the new processes may initially feel cumbersome. Applying labels, double-checking compliance, and updating workflows all require training and adjustment. 

To smooth this transition, sellers should start preparing early by training warehouse staff, documenting standard operating procedures (SOPs), and running test shipments before the official deadlines. Clear communication and step-by-step guidance can help staff adapt quickly, reducing the risk of mistakes once the new rules go into full effect.

What’s Next With the End of Amazon Commingling? 

Ending commingling is not just another logistics update but it’s a fundamental shift in how Amazon balances the needs of brands, resellers, and customers. The marketplace is moving toward stronger partnerships with trusted brands, tighter oversight of unauthorized sellers, and better tools to fight counterfeits.

Analysts see this as a turning point in Amazon’s relationship with major manufacturers. For brand owners, it is overdue but welcome. For resellers, it means adapting to a new era where brand control outweighs the shortcuts of pooled inventory.

Conclusion

Commingling was once seen as an efficient way to streamline fulfillment. But over time, its risks became impossible to ignore. From Johnson & Johnson’s early frustrations to Nike’s public exit and eventual return under stricter terms, the message has been clear that “authenticity matters more than efficiency”.

Amazon’s leaders have now recognized this too and they end up phasing out the commingling Amazon. The major reason behind is the common mantra, “Customers First” that all the marketplaces follow. So, it’s an end for the ones who have been selling the counterfeits and damaged products. The authentic sellers just need to be a bit more proactive and cautious.

The applause at the Accelerate conference told the story. Ending commingling was long overdue, and it marks the beginning of a new chapter for selling on Amazon.

FAQs 

1. What does the end of commingling mean for Amazon sellers?

It means sellers can no longer send inventory using just the manufacturer’s UPC; every unit will require a unique FNSKU label to keep products separated by seller.

2. Why did Amazon decide to end the commingling Amazon program now?

Amazon ended it after a fresh cost-benefit analysis, pressure from major brands like Nike and Johnson & Johnson, and years of complaints from sellers and industry groups about counterfeit and expired goods.

3. How will this change affect brand owners compared to resellers?

Brand owners will gain stronger control over their listings and fewer counterfeit complaints, while resellers and arbitrage sellers face higher costs, stricter oversight, and reduced access to certain products.

4. What should sellers do to prepare for the phase-out?

Sellers should audit their catalogs for affected SKUs, switch to FNSKU labeling, keep invoices and authenticity documents ready, strengthen supply chain transparency, and follow Amazon’s policy deadlines closely.

5. Will ending commingling Amazon increase costs for customers?

Customers may see slightly higher prices or fewer discount options, but they will also benefit from greater product authenticity, fewer counterfeits, and more reliable shopping experiences.