Amazon Ends Inventory Commingling in Major Supply Chain Shift

Amazon has confirmed it will discontinue its inventory commingling program entirely, with the change taking effect on March 31, 2026. This represents a fundamental shift in how the company manages products from third-party sellers within its fulfillment network.

The program currently allows independent sellers to have their inventory stored and shipped alongside Amazon's own products, creating operational efficiencies for both parties. This decision will require sellers to adopt new inventory management strategies as the deadline approaches.

Inventory commingling refers to the practice of storing products from different sellers together in Amazon's fulfillment centers. When a customer places an order, the system automatically selects the closest available item regardless of which seller originally sent it to the warehouse.

This approach has traditionally offered several advantages for marketplace sellers:

• Reduced shipping times to customers
• Lower storage and handling costs
• Simplified inventory management
• Access to Amazon's extensive fulfillment network

For Amazon, commingling streamlined warehouse operations by consolidating similar products from multiple sources into single storage locations. The system relied on advanced tracking technology to maintain inventory accuracy while allowing products to be mixed.

The termination of this program will require third-party sellers to adopt new inventory strategies. Sellers will need to maintain separate storage for their products rather than integrating them with Amazon's stock. This change may increase operational complexity for many businesses that have relied on commingling for years.

Sellers will face several new requirements:

• Independent inventory tracking and management
• Separate fulfillment arrangements or alternative programs
• Potential increases in storage and shipping costs
• Revised logistics planning and supply chain coordination

The transition period until March 31, 2026 gives sellers time to adjust their operations. However, businesses will need to evaluate their current fulfillment strategies and potentially explore alternative solutions to maintain competitive delivery times and cost structures.

This decision reflects broader changes in Amazon's fulfillment network strategy and marketplace operations. The company appears to be moving toward greater separation between its own inventory and third-party seller products, potentially to improve quality control, reduce complexity, or prepare for other operational changes.

Industry observers note several potential reasons for this shift:

• Enhanced inventory tracking and accountability
• Reduced risk of product mix-ups or quality issues
• Preparation for new fulfillment programs or partnerships
• Streamlined operations within Amazon's warehouse network

The timing of this announcement—giving sellers nearly two years to prepare—suggests Amazon recognizes the significant operational impact. The company likely expects sellers to develop alternative fulfillment solutions or transition to other Amazon programs that may be introduced before the deadline.

As the March 31, 2026 deadline approaches, sellers will need to carefully evaluate their fulfillment strategies. The end of commingling represents both a challenge and an opportunity for businesses to optimize their logistics operations.

Key considerations for sellers include:

• Assessing current inventory management systems
• Exploring alternative fulfillment options
• Calculating potential cost increases
• Planning for the transition period

This change underscores the evolving nature of e-commerce fulfillment and the importance of flexible supply chain strategies. While commingling offered convenience, its removal may encourage sellers to develop more robust, independent inventory management capabilities that could benefit their long-term business operations.