The Amazon Ship in Product Packaging program can help you reduce costs by minimizing packaging, damages, and FBA fees. This program is available to all sellers who use Fulfillment by Amazon (FBA) starting February 5th, 2024. The SIPP program, formerly known as Ships in Own Container (SIOC), reduces packaging by verifying products that can be shipped without an Amazon box, envelope, or bag and arrive to customers undamaged. Qualified products will ship in their own branded product packaging without any additional Amazon packaging material. This lowers FBA fees, reduces waste, and increases brand awareness to connect with customers. If you’re thinking of redesigning your product packaging or curious if your current packaging qualifies, continue reading to understand the benefits, packaging requirements, and testing requirements for the Ships in Product Packaging program.
Benefits of the Amazon SIPP Program
Since 2015, Amazon has reduced its average outbound packaging weight per shipment by 41%, which has prevented the use of more than 2 million tons of packaging material. FBA sellers, Amazon customers, and Amazon can all benefit from the SIPP program. Sellers will automatically receive lowered FBA fulfillment fees on each certified unit shipped. Based on the size tier of the product, there’s potential to receive an FBA fee discount of $0.04 to $1.32. This could be a substantial percentage off depending on the product’s size tier. The program can also increase a seller's ability to connect with their customers. Without Amazon packaging, the original manufacturer’s branding is the first thing customers will see and they’ll have an easier unboxing experience that supports sustainability efforts. Amazon customers will appreciate having just one package to open and less waste to get rid of. A product enrolled in the SIPP program allows shoppers to purchase from brands that share similar views on sustainable packaging. Shoppers can choose if their order is packaged in extra Amazon packaging or not during the checkout process. Amazon can also reduce costs and contribute to its sustainability goals with the program. If a shipping label is applied directly to the original product packaging, instead of adding extra packaging material, Amazon can significantly reduce waste and improve efficiency throughout the fulfillment process.
Packaging Requirements for the Ships in Product Packaging Program
Before products can be successfully enrolled in the SIPP program, there are packaging requirements that must be met. Product packaging must meet the minimum dimensions of 6" x 4" x 0.375". The product is ineligible for the program if the outermost packaging is less than this size because it is too small for the standard Amazon 6” x 4” shipping label. Both flexible and rigid packaging are eligible for enrollment. For items in flexible packaging only, the packaging cannot exceed maximum dimensions 18" x 14" x 6" (L+H ≤ 21" and W+H ≤ 16") and 7lbs when laid flat. A flexible package is considered exterior packaging like bags, stand-up pouches, padded mailers, or envelopes. Rigid packaging must be a six-sided box in either a cube or rectangular shape. L-shaped boxes are not eligible because they are not six-sided. Rigid packaging must be free of protrusions, hang tabs, handles, windows, and cut-outs. The packaging is allowed to have hand holes that are designed for carrying but the holes can’t exceed dimensions of 3.5”x 1.0”. Both rigid and flexible packaging must be durable enough to provide protection and remain sealed during the sorting and distribution process.
Testing Requirements for the SIPP Program
Amazon and the International Safe Transit Association (ISTA) have created testing methods for items in both rigid and flexible packaging. For testing requirements, the certification process will depend on the dimensions, weight, product type, and packaging type of the product being tested. In most cases, self-testing will be accepted if the product is non-fragile and does not contain liquids or sharp items. A series of drop tests will need to be performed to complete the required self-testing. Your evaluation will be based on visible damage or breakage, loss of function or utility, and compromised seals or tape. Pre-test and post-test photos of the packaging and the item are required for both rigid and flexible packaging. A self-test won’t be accepted if the product is fragile, contains liquids, or contains sharp items, and testing will need to be performed by an ISTA 6 lab. Amazon has a network of ISTA 6 labs around the world that can help with packaging certification that meets SIPP requirements.
Frequently Asked Questions for Amazon Ships in Product Packaging Program
What is Amazon’s Ships in Product Packaging (SIPP) program?
The SIPP program allows FBA sellers the ability to test their product packaging to verify it is durable enough to safely ship products to customers in just the original packaging without additional Amazon packaging material.
Is there a difference between Ships in Product Packaging (SIPP) and Ships in Own Container (SIOC)?
No, there is no difference between SIPP and SIOC. They share the same packaging certification standards.
Who is eligible for the Ships in Product Packaging (SIPP) program?
Starting February 5, 2024, the Ships in Product Packaging program will be available through Seller Central to all FBA sellers in the following marketplaces: United States, Canada, France, Germany, Italy, Spain, and the United Kingdom.
Do customers know their product will be shipped as Ships in Product Packaging?
Yes, during the checkout process, customers will be notified their product will ship in its own packaging. The customer can choose to add additional Amazon packaging at no additional cost.
Is separate testing required to certify all variations of the ASIN that is being tested?
No, separate testing is not required to certify all variations of the ASIN being tested. For variations, a single test report can be submitted for certification.
What FBA fulfillment fee discount rate will I receive?
The FBA fulfillment fee discount rate you receive will depend on the size and weight of your certified product.
Conclusion
Amazon continues to grow and incentivize sellers to participate in its sustainable packaging programs. They shipped 11% of their items globally without extra Amazon packaging material in 2022, and introducing the Ships in Product Packaging program to all FBA sellers is their latest effort. Enrolling products in the program can lower FBA fees, reduce material waste, and increase brand awareness. Sellers not utilizing the program could be missing out on reduced FBA fees and opportunities to connect with customers. Goat Consulting would love to help with your Ships in Product Packaging questions. Click the Contact Us button below to start that conversation.
About the Author
This post was written by Mike Gray, an Account Manager at Goat Consulting. Mike helps his clients sell on Amazon by increasing sales, mitigating risk, reducing costs, and solving problems. Mike has experience and expertise in FBA fulfillment costs and supply chain strategies that align with the overall Amazon selling strategy and goals for his Goat Consulting clients. If you want help understanding the Ships in Product Packaging program, or assist with other aspects of selling on Amazon, Mike is happy to lead your account.