The SIPP program can boost sustainability and shipping efficiency for Amazon FBA sellers. But SIPP offers even more benefits.
Sustainability has been one of Amazon’s biggest priorities. That’s one reason Amazon created the SIPP (ships in product packaging) program. In 2023, Amazon shipped 12% of its products without using additional packaging.
The program is available to FBA sellers in the USA, Canada, Germany, France, Spain, Italy, and the UK. More sellers are joining the Amazon SIPP program for many reasons, mainly because it boosts efficiency in the shipping process.
But what is the SIPP program, how does it benefit sellers, and how do you sign up? And can any FBA seller really sign up?
What Is SIPP?
SIPP is a fulfillment strategy in which products are shipped in their original packaging. When a customer usually orders an Amazon product, warehouse workers place the item in an Amazon package before sending it out.
With SIPP, sellers design branded shipping packages and place the product directly in the box without additional packaging slips. In other words, sellers can use the product box as the shipping box, fixing the shipping labels to the product packaging―not an additional box or slip.
Benefits of the SIPP Program
Amazon introduced SIPP for many reasons. First off, because the program helps sellers simplify logistics, reduce waste, and save money. But Amazon SIPP offers even more benefits.
Better Connection to Customers
No one likes excessive packaging materials. They’re difficult to open, and you’ll have all this waste all over your home. These packages are more complicated to open if you have a condition, like arthritis, that makes opening and closing items painful.
Shipping products in the external box is more straightforward. Customers only need to open one box and pull out the product. This is especially helpful when opening and disposing of products efficiently during the holidays.
With SIPP, sellers brand their product packaging, eliminating surprises when their parcel arrives on their doorstep or in their mailbox.
Related content: About Frustration-Free Packaging
Low Fulfillment Fees
Reducing packaging materials will result in lower fulfillment costs. Since warehouse workers aren’t placing products in extra packaging, this reduces labor. These savings also extend to Amazon, which decreases FBA fees.
Most importantly, customers will also save on shipping costs, driving them to continue supporting your business.
Improves Brand Sustainability
SIPP’s ultimate goal is to eliminate excess packaging. This boosts sustainability, reduces waste, and improves Amazon’s environmental impact. As a seller, your environmental views will align with 65% of consumers, and these customers will likely choose your business over a competitor.
Related content: Sustainable Ecommerce
Should FBA Sellers Join the SIPP Program?
While SIPP offers many benefits, there are considerations that FBA sellers must make before joining this program.
First, sellers must pay special attention to designing their packaging because they will require approval from Amazon. The parcel must pass different tests and inspections before it can be shipped.
There are also product thresholds to consider. Since SIPP restricts packaging, products won’t have an extra layer of protection. If you sell fragile items, these products aren’t a good fit for the SIPP program.
Even if your items aren’t considered ”fragile,” they may suffer wear and tear without the extra packaging. Sellers must identify acceptable wear and tear before joining the SIPP program.
Also, you should note that SIPP doesn’t offer additional shipping benefits like expedited shipments.
How to Enroll in the SIPP Program
While the SIPP program has many advantages, Amazon has rigid requirements for sellers. Fortunately, you can enroll in the SIPP program by following these simple steps.
Design Your Product Packaging
First, review your products and current packaging. Make any necessary changes that comply with Amazon’s requirements. Here are some best practices:
- Amazon accepts bags made of a flexible material, such as paper or plastic, or padded mailers that are two millimeters thick.
- All packages must be sealable.
- The packages must weigh seven pounds (three kg) or less.
- Packages must be between 6 x 4 x 3.75 inches (152.4 x 101.6 x 9.5 mm) and 18 x 14 x 6 inches (457 x 406.4 x 152.4 mm).
- Shipping labels and other markings must indicate their contents. That said, label sensitive materials (such as underwear and medical products) discreetly.
- Packaging should be opaque to conceal the contents.
Prohibited products include:
- Any item with protrusions (such as hangers)
- Dangerous goods
- Magnets
- Liquid items
- Granular products
- Food
If you have large items or products under the prohibited list, you should follow Amazon’s rigid product packaging requirements:
- Larger than 6 x 4 x 0.375 inches (152.4 x 101.6 x 9.5 mm)
- Packaging must be a six-sided shape. You can’t use spherical or cylindrical-shaped packaging. The packaging can’t have perforations.
- It must have a closure.
- Shipping labels must specify contents but be discreet when labeling sensitive products.
- For best results, make the package opaque.
There are still some prohibited products in this category, including:
- Any item with cutouts
- Dangerous products
Related content: How to Make FBA Shipping Labels
Group Your ASINs
Evaluate your inventory and group the ASINs for the items that qualify. Choosing the ASINs you can fit on one test report is best. You’ll discover more about product testing in the next section. You can group the products based on these factors:
- Weight
- Size
- Packaging
- Product material
- Packaging quantity
- Product-to-packaging ratio
SIPP doesn’t go by FNSKU numbers or your product’s MPN.
Test
Your packaging must pass the International Safe Transit Association (ISTA) 6 lab test. You can find a lab by visiting this link.
You can also perform a self-drop test. However, you can only self-test if your product doesn’t contain liquids, isn’t considered fragile, is not granular with a <1” diameter, and isn’t sharp.
When conducting a self-test, evaluate the results by answering these questions:
- Does your product lose function?
- Is there visible breakage or damage?
- Does dropping the product compromise the tape or seal?
- Would your customers notice wear and tear on the packaging or product?
In addition to the evaluation, take at least five photos of the post-test parcel. Click here to learn more about self-testing your parcel.
Enroll
When you pass your tests, you can enroll in the program. You do so through your Amazon Seller Central account. Since this process differs by country, it’s best to visit this link and find your country. Follow the steps that Amazon outlines.
FAQs
I heard about a similar program, but it was called Ships in Own Container (SIOC). What’s the difference?
The programs are the same. SIOC is what SIPP used to be called. Amazon renamed and rebranded the program to better reflect its purpose. They are nearly identical; you ship items in their own package and go through the same tests and requirements.
Will my customers know I’m using SIPP?
Yes, Amazon will inform customers that certain items will ship in the product packaging. Customers can use Amazon containers at no extra cost during checkout. Sellers will still receive the SIPP incentives, even if the customers choose Amazon’s packaging.
How does Amazon apply a SIPP discount?
Once Amazon approves your SIPP enrollment request, you’ll receive discounts when customers purchase the applicable ASINs.
How much of an FBA discount will I receive?
This varies for each product and depends on the item’s weight and size. For more information, US sellers can visit this link and Canadian sellers can visit this link.
Do I need to test all my ASIN variations?
No. You don’t need to as long as the different ASINs are variations of the same product. An example of a product variation is a dress in various colors.
Does my SIPP enrollment mean I’m eligible for a Climate Pledge Friendly (CPF) Badge?
No, SIPP isn’t part of the CPF program. You’ll need to find out here if you’re eligible to receive a CPF badge.
Does SIPP come with different shipping requirements?
No. If you’re an FBA seller, you continue sending your parcels to Amazon as usual. Ensure your packaging meets the new SIPP requirements and has an exterior scannable label.
Reduce Waste and Gain Sales With SIPP
With SIPP, you ship products in their original packaging. The program has many advantages, such as low fulfillment fees.If you’re an Amazon seller trying to be more sustainable, you should join the program.
Did you read this guide and realize the SIPP program isn’t right for you? There are other ways to improve your shipping. We can look at your current strategy and offer ways to spend less and earn more.
Click here to get started.
Author
Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
