Amazon's Ships in Product Packaging Programme Offers Lower FBA Fulfilment Fees for Sellers
Amazon renamed its Ships in Own Container (SIOC) program to Ships in Product Packaging (SIPP) and now offers lower FBA fulfillment fees for qualifying items. Approved SKUs are automatically re‑classified into a reduced‑fee tier, delivering up to $0.35 per unit savings (e.g., a medium‑size item) and eliminating the Amazon overbox.
Overview
Amazon has renamed its Ships in Own Container (SIOC) initiative to Ships in Product Packaging (SIPP) and is now offering lower FBA fulfillment fees for qualifying items. By allowing sellers to ship products in their own branded containers without an extra Amazon overbox, the program promises cost reductions, stronger brand presence at the doorstep, and a greener packaging footprint. Sellers who meet the durability standards can tap into these savings immediately.
Key Points
- Program rename — The former SIOC scheme is now called SIPP, emphasizing that any product‑ready packaging can be used, not just pre‑built containers.
- Lower fulfillment fees — Items approved for SIPP automatically move into a reduced‑fee tier, delivering a per‑unit cost cut that varies by size and weight.
- Brand exposure on delivery — Customers receive the product in the seller’s custom box or bag, turning the last‑mile delivery into a branded experience.
- Environmental advantage – Removing the redundant Amazon box cuts cardboard waste, frees up truck space, and trims the carbon impact of each shipment.
- Seamless transition for existing users — Sellers already enrolled in SIOC keep their discounted rates under SIPP without needing to repeat the certification process.
- Cross‑border logistics partner — UPS Supply Chain Solutions continues to manage freight for international moves, ensuring the same level of service for SIPP‑eligible shipments.
How the Ships in Product Packaging (SIPP) Program Works
- Assess packaging durability — Verify that the product’s own box, sleeve, or bag can survive the full Amazon fulfillment journey without tearing, crushing, or water damage; for example, a 12‑oz shampoo bottle in a sturdy corrugated sleeve passes the test.
- Submit enrollment request — Log into Seller Central, navigate to the SIPP enrollment portal, and upload packaging photos and specifications for each ASIN you wish to certify; a seller of handcrafted candles entered three SKUs with images of their custom printed boxes.
Analysis & Recommendations
Why This Matters
Sellers can cut fulfillment costs by up to $0.35 per unit, which on a 5,000‑unit month equals $1,750 saved, while also enhancing brand exposure by delivering products in their own packaging and reducing cardboard waste.
Key Takeaways
- Program rename: SIOC is now called Ships in Product Packaging (SIPP), allowing any product‑ready packaging without an Amazon overbox.
- Lower fee tier can save $0.35 per medium‑size unit, equating to $1,750 monthly on 5,000 units.
- Existing SIOC users retain discounted rates under SIPP without re‑certification.
- UPS Supply Chain Solutions continues as the cross‑border logistics partner for SIPP shipments.
Recommended Actions
- →In Seller Central, navigate to Fulfillment > Programs > Ships in Product Packaging and upload packaging photos/specs for each ASIN you wish to cert...
- →Generate a fee‑comparison report for top‑selling SKUs (e.g., 5,000 units/month) to calculate potential savings before enrollment.
- →Create a quarterly QA checklist in your operations dashboard to verify packaging durability and monitor Amazon compliance alerts.
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