#664 – All about the Amazon Ships In Product Packaging Program
Amazon’s Ships In Product Packaging (SIPP) program, launched early 2023, lets eligible sellers ship items directly in Amazon‑branded poly‑bags or boxes, removing the $0.30‑$0.50 per‑unit prep fee and cutting packaging material by ~15‑20 %. Eligibility covers products ≤20 lb and ≤18 in on any side, and a SIPP badge plus a dedicated inventory tab appear in Seller Central.
Overview
Amazon’s “Ships In Product Packaging” (SIPP) program lets eligible sellers ship inventory already placed inside Amazon‑branded boxes, poly‑bags, or bubble‑wrap, eliminating the need for a separate prep box. Launched in early 2023 and now covering most categories that meet size, weight, and safety limits, the initiative reduces handling fees, cuts packaging waste, and creates a uniform unboxing experience for shoppers.
Key Points
- Prep‑fee elimination — Sellers avoid the typical $0.30‑$0.50 per‑unit inbound preparation charge by using Amazon’s own packaging instead of a secondary box.
- Material savings — Consolidating to a single Amazon‑approved package trims cardboard and plastic use by roughly 15‑20 % per shipment.
- Brand perception boost — Items arrive in the same Amazon‑styled packaging as items shipped from Amazon’s own warehouses, lowering buyer complaints about excess packaging.
- Broad eligibility — Products up to 20 lb and no larger than 18 in on any side, provided they are non‑hazardous, can qualify for SIPP.
- Automated routing — Seller Central flags SIPP‑eligible listings with a badge and automatically directs qualifying units to a dedicated inbound queue.
- Separate inventory view — A “Ships In Product Packaging” tab shows the exact quantity of SIPP‑qualified stock, removing the need for manual reconciliation.
How the SIPP System Works
- Eligibility check — Sellers run the “SIPP Eligibility Checker” in Seller Central; for example, a vendor of silicone spatulas confirms each unit weighs 0.4 lb, fits inside a 6 × 4 × 2 in envelope, and contains no liquid, passing the test.
- Packaging recommendation — Amazon suggests the appropriate branded poly‑bag or box based on the product’s dimensions; the same spatula seller receives a recommendation for a 6‑inch poly‑bag with a tamper‑evident seal.
- Combined label creation — The system generates a single label that merges the FNSKU with a SIPP identifier, including a QR code that instructs the fulfillment center to place the unit directly into the Amazon package.
Analysis & Recommendations
Why This Matters
Eliminating the prep fee saves $0.30‑$0.50 per unit and reduces cardboard/plastic use by up to 20 %, boosting margins and sustainability credentials. Sellers also see lower damage‑related returns (e.g., from 8 % to under 4 %) and gain automatic routing via the SIPP badge and inventory tab.
Key Takeaways
- Prep‑fee elimination saves $0.30‑$0.50 per unit, as shown in the wooden‑utensil seller example.
- Material usage drops roughly 15‑20 % per shipment when using Amazon‑approved poly‑bags.
- Eligibility limits are ≤20 lb weight and ≤18 in on any side for non‑hazardous items.
- A “Ships In Product Packaging” badge and dedicated inventory tab provide automatic routing and real‑time SIPP‑qualified stock visibility.
Recommended Actions
- →Run the “SIPP Eligibility Checker” in Seller Central > Inventory > Add a Product > SIPP Eligibility to confirm eligibility.
- →Enable the “Ships In Product Packaging” badge on each qualifying listing via Seller Central > Catalog > Manage Inventory > Edit > Packaging Options.
- →When creating inbound shipments, tag units as “SIPP‑ready” and follow the recommended Amazon poly‑bag list under Seller Central > Shipments > Creat...
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