Amazon's Ships in Product Packaging Program Offers Lower FBA Fulfillment Fees
Amazon renamed its Ships in Own Container (SIOC) program to Ships in Product Packaging (SIPP) and added a reduced FBA fee tier. Qualified SKUs can see per‑unit cuts such as $0.30 on a 2,000‑unit monthly spatula set, and legacy SIOC certifications keep the discount automatically.
Overview
Amazon has renamed its Ships in Own Container (SIOC) program to Ships in Product Packaging (SIPP) and now offers lower fulfillment fees for qualifying FBA items. The change lets sellers ship products in their own branded containers, eliminating Amazon’s over‑boxing and unlocking cost reductions, stronger brand presence at the doorstep, and less packaging waste. Sellers who meet the durability standards can see per‑unit fee savings that add up quickly on high‑volume listings.
Key Points
- Program rename — The former SIOC initiative is now called SIPP, signaling Amazon’s focus on product‑ready packaging rather than just “own containers.”
- Lower fulfillment fees — Products approved for SIPP automatically qualify for a reduced fee tier, delivering a concrete per‑unit cost cut that varies by size and weight.
- Brand exposure at delivery — Because the item arrives in the seller’s custom box instead of a generic Amazon box, customers see the brand’s logo and design the moment they open the package.
- Environmental advantage – Removing the extra Amazon over‑box cuts material use, frees up truck space, and trims the carbon footprint of each shipment.
- Legacy certifications honored — Any SKU that was already certified under the old SIOC program continues to receive the new SIPP discount without needing to resubmit.
How SIPP Certification Works
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Submit packaging for review — Sellers log into the SIPP enrollment portal in Seller Central, select the ASINs they want to certify, and upload photos or PDFs of the final packaging. Example: A seller of premium coffee beans uploads images of their sealed, branded tote bag, showing the exact dimensions and cushioning.
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Durability assessment by Amazon — Amazon’s compliance team evaluates whether the submitted packaging can protect the product throughout the entire fulfillment network without an additional over‑box or poly bag. Example: The team tests the coffee tote by simulating drops, compression, and vibration; the bag passes because it has reinforced seams and a sturdy inner liner.
Analysis & Recommendations
Why This Matters
Lower fulfillment fees increase profit margins on high‑volume items—for example, a metal water bottle seller saves $0.40 per bottle, adding $600 monthly profit on 1,500 sales. Custom packaging also boosts brand exposure at delivery and reduces packaging waste.
Key Takeaways
- Program rename: SIOC is now called Ships in Product Packaging (SIPP).
- Fee reduction example: $0.30 per unit saved on a 2,000‑unit/month spatula set and $0.40 per unit on 1,500 bottles.
- Legacy certifications: SKUs already approved under SIOC retain the new SIPP discount without re‑submission.
- Eligibility requires durability assessment; packaging must pass Amazon's drop, compression, and vibration tests.
Recommended Actions
- →In Seller Central, open the SIPP enrollment portal, filter your top 20 ASINs with ≥500 units/month, and upload photos or PDFs of the final packaging.
- →Perform in‑house drop and compression tests on packaging to ensure it meets Amazon's durability standards before submitting.
- →Download the current FBA fee schedule, apply the SIPP discount percentages per size tier, and calculate projected monthly profit gains for each can...
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