Amazon’s SIOC Rebranded as SIPP; Brands Still Flock to Participate
Amazon says its e-commerce packaging program, now with a new acronym, reduces waste and enhances customer experience by designing products specifically for online shipping, eliminating unnecessary materials and promoting sustainability.
For parents like Amazon’s Kayla Fenton, senior manager, technical product management, Sustainable Packaging, the ease of ordering baby essentials online is a lifesaver. But the downside is the surplus of packaging materials that accompany these deliveries.
E-commerce can sometimes get a bad rap at sustainability-minded conferences like GreenBlue and Sustainable Packaging Coalition's Advance 2024, held this week in Chicago. The convenience of online shopping may come at a hidden cost: excessive packaging. For parents like Amazon’s Kayla Fenton, senior manager, technical product management, Sustainable Packaging, the ease of ordering baby essentials online is a lifesaver. But the downside is the surplus of packaging materials that accompany these deliveries.
“Most parents would agree, leaving the house with the toddler is like an Olympic sport, and like, we just don't want to train every day… What I don't love as much is when that comes with a lot of extra stuff,” Fenton said.
As she described yesterday at SPC Advance, Amazon has been actively addressing this issue through its recently re-minted e-commerce packaging mission, which aims to reduce and avoid unnecessary packaging, promote recyclability, and ensure products are easy to open while still being protected from damage. Since 2015, Amazon has made significant strides, reducing packaging materials by 43% on average and avoiding over 2 million tons of packaging materials. Fenton attributed this to smarter sourcing of materials, new automation technologies, and a focus on right-size packaging.
A SIOC by any other name
Whatever the name, the program challenges the traditional notion that products must be designed for physical retail shelves, which often results in unnecessary waste when these items are shipped directly to consumers.
“Most products we buy are designed for a physical retail shelf," Fenton said. “They're designed to catch your eye as you're walking by... but it's simply not needed when you're making your purchasing decision online.”Melissa and Doug brand toy packaging was designed with hanger tabs and inserts to display the product on a shelf. It eliminated those elements for the e-comm channel with Amazon's SIPP program.
The SIPP program involves shipping products in their original packaging without additional Amazon-added materials. “No boxes, no dunnage, no bags, nothing. A ship label goes directly on the product when it's shipped,” Fenton said. This approach is validated through a testing standard developed with the International Safe Transit Authority (ISTA), known as ISTA 6A (yes, the ‘A’ stands for Amazon). This standard ensures that products can withstand the rigors of fulfillment and arrive safely at customers’ doorsteps.
Several examples illustrate the SIPP program’s success. For instance, the Melissa and Doug toy brand redesigned its packaging to eliminate unnecessary components, resulting in a solution that is 58% smaller and easier for customers to recycle. Similarly, Fisher-Price created a minimalist right-sized box that reduced packaging components by 18 and decreased the packaging cube by 88%.
Another notable example is SC Johnson'sWindex glass cleaner. The company faced challenges in shipping liquids with trigger spray fitments, which often resulted in leaks. By redesigning the packaging to include a simple component that keeps the trigger spray in place, SC Johnson was able to reduce the package size by 70% and improve the customer experience, Fenton said.
The SIPP program not only benefits the environment but also enhances customer satisfaction. According to Fenton, “Three quarters of our customers believe that many of the products that they receive don't need any additional packaging.” This sentiment is echoed by the 80% of customers who care about the environmental impact of their purchases.
Beyond the immediate benefits of reduced waste and improved customer experience, the SIPP program also saves money. By minimizing the amount materials used in packaging, companies can lower their shipping costs and reduce the environmental footprint of their logistics operations. This is particularly important as the demand for e-commerce continues to grow, putting additional pressure on supply chains and increasing the volume of packaging waste.
The initiative also seems to encourage innovation in packaging design, pushing brands to think creatively about how they can make their products more sustainable. For example, the concept of reversible boxes, where one side serves as a traditional shipping box and the other as part of the product experience, is gaining traction. This not only reduces waste but also enhances the unboxing experience for customers, adding value to the product itself.
The impact of Amazon's e-commerce packaging mission extends beyond the company's immediate operations. It sets a precedent for the industry, encouraging other retailers and manufacturers to rethink their packaging strategies. By demonstrating that sustainable packaging can be both cost-effective and beneficial for customer satisfaction, Amazon is paving the way for broader adoption of these practices across the sector.
Echoing a major theme at SPC’s Advance conference, SIPP initiative highlights the importance of collaboration across the supply chain. From material suppliers to testing labs, each stakeholder plays a role in developing and implementing packaging solutions that meet comparatively rigorous, many-touch e-commerce demands. 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 its e-comm package's footprint and leakers.
Does your product qualify?
To qualify for SIPP, products must meet the following criteria:
· Be shipped in a rigid 6-sided box, rigid or padded mailer, or bag
· Have minimum dimensions of 6 in. x 4 in. x 0.375 in.
· Have maximum dimensions of 18 in. x 14 in. x 6 in. for flexible packaging
· Be securely sealed and meet all labeling requirements
· Pass physical performance tests through a self-drop test or International Safe Transit Association (ISTA) 6 lab test
SIPP is available to all sellers who use Fulfillment by Amazon (FBA). The program allows sellers to ship products in their own branded packaging, instead of using an Amazon box, bag, or envelope. This can help reduce costs, damages, and FBA fees.
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Melissa and Doug brand toy packaging was designed with hanger tabs and inserts to display the product on a shelf. It eliminated those elements for the e-comm channel with Amazon's SIPP program.
