In 2024, Amazon is launching a new initiative called the Ships in Product Packaging program, aimed at allowing third-party sellers to ship items using only their own branded containers, without any additional packaging. Announced during Amazon’s annual seller conference, this program is designed to support sellers in creating more sustainable and cost-effective shipping options. Rachel Montenegro, the senior program manager of sustainable packaging at Amazon, highlighted the positive feedback received from sellers participating in this year’s pilot program, Ship in Own Container.
The initiative offers several benefits, primarily revolving around cost savings and sustainability. Sellers participating in the program may qualify for reduced Fulfillment by Amazon (FBA) fees, which can assist them in maintaining profitability. The new shipping method encourages more compact packaging, thereby minimizing transportation costs and carbon emissions. Montenegro provided an example with Philips’ OneBlade razor, which successfully reduced packaging components by 30% and packaging volume by 80% after redesigning its packaging to utilize only curbside recyclable materials. This not only streamlined the unboxing experience for customers but also made disposal easier.
In 2022, Amazon reported that 11% of items were shipped globally without added packaging, with customers being notified at checkout of this option. They also retain the choice to add packaging at no extra cost. For items certified under the new program, sellers shipping to North America or the European Union can receive discounts based on the product’s size and weight. The average discount for oversized products was noted at $2.06 per unit, while standard-sized goods received about 31 cents per unit. To date, over $2 million in seller discounts have been paid out in 2023 alone.
However, there are exclusions from the program, including items with lithium batteries and those presenting “problematic elements,” such as hang tabs or shrink wrap. This initiative reflects Amazon’s continuous efforts to enhance sustainability in its logistics and align with the increasing demand for environmentally friendly shipping practices.
Overall, the Ships in Product Packaging program is positioned as a win-win for both Amazon and its sellers, aimed at fostering profitability while promoting sustainable practices in the e-commerce sector.
