The End of Commingling: What Amazon’s Change Means for Sellers & Brands

What Is Commingling (and How It Started)

Commingling refers to Amazon’s policy of pooling identical items from different sellers (and sometimes Amazon itself) in its fulfillment centers. Under commingling, Amazon may use any unit in the shared pool to satisfy a customer order, regardless of which seller supplied it. This was introduced to increase efficiency, reduce shipping times, and simplify inventory handling. However, it came with risks. Sellers could opt out by using their own FNSKU barcodes, but this added costs.

Problems & Risks That Sellers Encountered

Over time, commingling led to significant challenges:

1. Counterfeit & Inauthentic Products – counterfeit or substandard goods could be mixed in.

2. Quality, Expiry, Damage Issues – expired or damaged units sometimes shipped.

3. Seller Liability & Lack of Traceability – sellers were often blamed for inventory that wasn’t theirs.

4. Cost & Operational Friction – opting out required extra labeling and expense.

5. Brand Reputation Damage – negative reviews and claims harmed even diligent brands.

The Turning Point & Amazon’s Recent Announcement

At its Accelerate 2025 seller conference, Amazon announced it will phase out commingling. Advances in logistics and the burden on sellers—estimated at $600 million annually in relabeling costs—pushed Amazon to make this change.

Timing & Phasing Out

Amazon stated the change will be implemented later in 2025 in phases. Some categories may see a full phase‑out by mid‑2026. During transition, commingled inventory may still exist.

What This Means for Sellers & Brands (Action Items)

Sellers should:

- Audit inventory labeling.

- Plan inventory placement.

- Review costs and margins.

- Track customer complaints closely.

- Communicate brand authenticity to customers.

What ThornCrest Recommends (Immediately)

1. Audit current inventory and labeling.

2. Standardize FNSKU labeling.

3. Strengthen supplier verification.

4. Recalculate costs and margins.

5. Monitor Amazon rollout notices.

6. Use this change to differentiate your brand.

Looking Ahead

Ending commingling is a major shift that favors legitimate brands. We can expect fewer counterfeit complaints, better customer trust, and stronger brand reputation moving forward.