Amazon’s SIOC renamed SIPP; Brands are still eager to participate

E-commerce can sometimes get a bad rap at sustainability conferences like GreenBlue and the Sustainable Packaging Coalition’s Advance 2024, which are taking place this week in Chicago. The convenience of online shopping may come with a hidden price: excessive packaging. For parents like Amazon’s Kayla Fenton, senior technical product management manager for Sustainable Packaging, the ease of ordering baby supplies online is a godsend. The downside, however, is the surplus of packaging materials that accompany these deliveries.

“Most parents will agree that leaving the house with a toddler is like an Olympic sport and we just don’t want to train every day… What I don’t like the most is when it involves a lot of extra stuff,” Fenton said.

As she described yesterday on SPC Advance, Amazon is actively addressing this issue through its recently launched e-commerce packaging mission, which aims to reduce and avoid unnecessary packaging, promote recyclability, and ensure products are easy to open while protecting them from damage. Since 2015, Amazon has made significant progress, reducing packaging materials by an average of 43% and avoiding over 2 million tons of packaging materials. Fenton attributed this to smarter material sourcing, new automation technologies and a focus on right-sized packaging.

SIOC by any other name

A key element of this initiative is the Ships in Product Packaging (SIPP) program. In February this year, the Amazon Ships in Own Container (SIOC) program was renamed the Ships in Product Packaging (SIPP) program. The new name is intended to better reflect the program’s goals.

Whatever the name, the program challenges the traditional belief that products must be designed for physical retail shelves, which often results in unnecessary waste when products are shipped directly to consumers.

“Most of the products we buy are designed for the physical retail shelf,” Fenton said. “They’re designed to catch your eye as you walk by… but that’s just not necessary when you’re making a purchasing decision online. “The packaging of Melissa and Doug toys has been designed with hangers and inserts allowing the product to be displayed on the shelf. It has eliminated these elements for the e-comm channel with Amazon’s SIPP program.

The SIPP program involves shipping products in their original packaging, without any additional materials added by Amazon. “No boxes, no dunnage, no bags, nothing. The shipping label is placed directly on the product when it is shipped,” Fenton said. This approach is supported by a testing standard developed with the International Safe Transit Authority (ISTA), known as ISTA 6A (yes, the “A” stands for Amazon). This standard guarantees that products will withstand the rigors of implementation and reach customers safely.

Several examples illustrate the success of the SIPP program. For example, toy brand Melissa and Doug redesigned its packaging to eliminate unnecessary elements, resulting in a solution that is 58% smaller and easier for customers to recycle. Similarly, Fisher-Price created a minimalist, well-sized box that reduced the number of packaging elements by 18 and the packaging cube by 88%.

Another notable example is SC Johnson’s Windex glass cleaner. The company faced challenges transporting liquids equipped with trigger sprays, which often resulted in leaks. By redesigning the packaging to include a simple element to hold the trigger spray in place, SC Johnson was able to reduce package size by 70% and improve the customer experience, Fenton said.

The SIPP program not only benefits the environment, but also increases customer satisfaction. According to Fenton, “Three quarters of our customers believe that many of the products they receive do not need any additional packaging.” This opinion is shared by 80% of customers who care about the impact of their purchases on the environment.

In addition to the direct benefits of reduced waste and improved customer service, SIPP also saves money. By minimizing the amount of materials used in packaging, companies can reduce shipping costs and reduce the environmental impact of their logistics operations. This is particularly important as demand for e-commerce continues to grow, putting additional pressure on supply chains and increasing packaging waste.

The initiative also appears to be encouraging innovation in packaging design, forcing brands to think creatively about how they can make their products more sustainable. For example, the concept of double-sided boxes, where one side serves as a traditional shipping box and the other as part of the product experience, is gaining popularity. This not only reduces waste, but also improves the unpacking experience for customers, adding value to the product itself.

The impact of Amazon’s e-commerce packaging mission goes beyond the company’s direct operations. It sets an industry precedent, encouraging other retailers and manufacturers to rethink their packaging strategies. By showing that sustainable packaging can be both cost-effective and beneficial to customer satisfaction, Amazon is paving the way for wider adoption of these practices across the sector.

Echoing the main theme of the SPC Advance conference, the SIPP initiative highlights the importance of collaboration across the supply chain. From material suppliers to test laboratories, every stakeholder plays a role in developing and implementing packaging solutions that meet the relatively stringent, multi-touch requirements of e-commerce. This collaborative approach not only accelerates the development of innovative packaging designs, but also ensures that these solutions are practical and scalable.SC Johnson’s Windex glass cleaner reduced both the footprint of the e-community package and the number of leaks.

Does your product qualify?

To qualify for SIPP, products must meet the following criteria:

· Can be shipped in a 6-sided rigid box, stiff or padded mailer or bag

· They have minimum dimensions of 6 inches x 4 inches x 0.375 inches.

· They have a maximum size of 18″ x 14″ x 6″ for flexible packaging

· Be securely sealed and meet all labeling requirements

· Pass physical performance tests via self-drop test or International Safe Transportation Association (ISTA) 6 lab test.

SIPP is available to all sellers using Fulfillment by Amazon (FBA). The program allows sellers to ship products in their own branded packaging, rather than using an Amazon box, bag or envelope. This can help reduce FBA costs, damages and fees.