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Originally published on January 30, 2024, updated March 21, 2024
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Have you ever opened a package only to find another box inside the box? Some modern eCommerce packaging can feel reminiscent of a matryoshka doll—you have to open box after box to finally reach the item inside. In addition to creating more work for the end customer, the more packaging materials used in an order, the more waste it creates. To combat waste and improve sustainability, Amazon now offers a Ships in Product Packaging (SIPP) program.
As of February 2024, SIPP is available to sellers in Canada, France, Germany, Italy, Spain, the United Kingdom, and the United States.
Amazon’s Ships in Product Packaging (SIPP) program, formerly called the Ships in Own Container (SIOC) program, is a program in which qualifying Fulfillment by Amazon (FBA) orders are shipped in the packaging provided by the manufacturer. By applying a shipping label directly to a product’s original package—rather than adding an extra layer of Amazon packaging—the company can significantly reduce waste and its carbon footprint.
The SIPP program is beneficial for Amazon and its sellers alike for a few main reasons:
SIPP is part of Amazon’s overall commitment to reducing waste and improving sustainability. Since 2015, Amazon has reduced the weight of outbound packaging by 41% on average and avoided over 2 million tons of packaging materials with the help of this initiative. As of 2022, 11% of all Amazon deliveries shipped in their own container, up from 8% the year before. Less packaging waste is a win for the environment and helps Amazon (and participating sellers) better meet sustainability goals.
Packaging materials cost money, so using less will naturally lead to cost savings. Amazon offers lower FBA fulfillment fees for sellers participating in the SIPP program. How much lower depends on the details of each order—specifically, the size and weight of the product. You can see how the SIPP discount is applied on Amazon’s FBA fulfillment fee page.
Consumers overwhelmingly say they care about choosing brands that have sustainable practices. 60% of people in a McKinsey survey said they’d pay more for a product with sustainable packaging. McKinsey’s research confirmed that consumers are putting their money where their mouth is when it comes to sustainability.
For these sustainability-minded consumers, SIPP provides your brand with a way to demonstrate values that match their priorities. And for customers who care about convenience, only having one box or package to open to get to their item makes for an easier experience.
Sellers have the option to enroll in SIPP starting February 5, 2024. If you’re interested in participating, here are a few important facts to know.
For products to qualify, the original packaging needs to meet some particular criteria:
Products with Frustration-Free Packaging (FFP) have packaging that meets SIPP guidelines as well as additional requirements. There isn't a separate certification for FFP, but FFP-compliant products can be enrolled in SIPP.
Hazmat, dangerous goods, or items that Amazon's historical data deems too small are ineligible for SIPP certification. Extra Large products in North America and Special Oversize products in the EU are not eligible for SIPP discounts because they're already required to ship in product packaging by default.
Amazon has worked with the International Safe Transit Association (ISTA) to develop testing requirements for any packaging included in the SIPP program. Before you can enroll your products in the program, your packaging will have to undergo the required testing. In some cases, for products that aren’t especially fragile or dangerous, you may be able to self-test. However, many products will need to undergo third-party lab testing to qualify. Amazon details the testing and packaging requirements on its SIPP certification page.
To participate in the SIPP program, you may need to make some changes to the packaging you use now. You can use Amazon’s guidelines (included on the certification page linked above) to get an idea of whether your current packaging matches the program participation standards.
If those requirements seem overwhelming at first, Amazon offers several resources to help sellers get started. The Amazon Packaging Support and Supplier Network can help you find testing labs, packaging suppliers, and designers. The Packaging Solutions Library presents examples of different packaging types and concepts to inspire any sellers re-thinking their packaging designs.
If switching your product packaging is required to participate in the program, that could mean a big, costly change up front. You’ll have to weigh the potential costs against the benefits to your business. However, an investment in packaging that meets the SIPP Requirements could help you save money in FBA fees, contribute to reduced waste, and create a better customer experience over time.
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