Amazon is expanding its Ships in Product Packaging program to hundreds of thousands of sellers in the U.S. and Canada that use Fulfillment by Amazon. The company announced last year that sellers would be able to join its SIPP program in 2024. Amazon ran a pilot program with a small group of selling partners in 2023 to learn what information sellers needed to fully understand SIPP and enroll a product. The SIPP push is one of Amazon’s recent packaging changes to improve company sustainability.
Sellers who enroll in the SIPP program will receive discounts based on the existing FBA fee tiers, which primarily consider package size and weight. Savings will range from 4 cents to $1.32 per unit. Even if a consumer specifically opts in during checkout to add Amazon packaging for shipment, a seller participating in SIPP will still receive their discount.
Amazon previously reported that it shipped 11% of products in their own packaging in 2022. The company is not releasing an expectation for how that figure could grow in light of the expansion or how many sellers currently participate in SIPP. However, it is “certainly anticipating that it increases over time” and is eagerly watching this year’s adoption rate.
Sellers must ensure their products meet eligibility criteria to ship without additional packaging. Size is the biggest determinant, as Amazon won’t ship small products in their own packaging for numerous reasons, including the inability to put labels on them. Other determining factors for SIPP approval include product weight or sensitivity factors. Amazon says all criteria are clarified to sellers in an online hub, Seller Central.
Amazon’s first goal is to make sure that the product arrives to customers undamaged, and meeting the testing requirements is the last piece of the puzzle for a product to be enrolled.
Source: Retail Drive
