Amazon Warns FBA Sellers: Incorrect SIPP Labels Could Cost You Fulfillment Savings
Amazon reminded FBA sellers that SIPP requires a box‑level barcode (SSCC, AMZNCC, 2D‑BPS, GTIN‑14) and an item‑level barcode (UPC, EAN, GTIN‑12, ASIN) on each unit. Missing or unreadable labels strip the SIPP discount and add about $0.30 per unit in extra fees, as seen when 10% of 500 skincare boxes were re‑boxed. Sellers are urged to audit 50 random units and add a scanning checkpoint in their SOP.
Overview
Amazon has reminded Fulfillment by Amazon (FBA) sellers that the Ships in Product Packaging (SIPP) program demands exact labeling on every unit. Failure to meet these requirements can strip sellers of the lower fulfillment fees that SIPP promises, cause delays at Amazon’s fulfillment centers, and force products into standard Amazon boxes instead of the seller’s own packaging. The warning is critical for any seller who relies on SIPP to keep costs down and maintain a streamlined shipping experience.
Key Points
- Two‑label rule for single items — Each SIPP unit must display a box‑level barcode (SSCC, AMZNCC, 2D‑BPS, or GTIN‑14) and an item‑level barcode (UPC, EAN, GTIN‑12, or ASIN) on the exterior, both readable without opening the package.
- Case pack labeling — When shipping multiple units in a case, the outer case needs its own scannable box label, and every individual item inside must still carry a separate item‑level label.
- Set and bundle designation – Packages that contain two or more items sold as a set must feature a prominent “Sold as a Set” label on the outermost packaging.
- Fee loss on mislabeling – If any required label is missing or unreadable, Amazon treats the shipment as a regular FBA parcel, eliminating the SIPP discount and often adding extra handling fees.
- Processing delays – Repeated labeling errors trigger internal alerts, slowing intake, reducing inventory availability, and potentially harming a seller’s sales velocity.
How SIPP Labeling Works
- Create the box‑level label — Generate a barcode in one of the accepted formats (e.g., an SSCC like
123456789012345678). Place it on the outside of the product’s retail box where a fulfillment‑center scanner can read it without opening the package. Example: A seller of kitchen gadgets prints an SSCC label and affixes it to the top‑right corner of each boxed blender. - Attach the item‑level label — Apply a second barcode that identifies the specific SKU (UPC, EAN, GTIN‑12, or ASIN). This label also sits on the exterior, typically on the front or side panel.
Analysis & Recommendations
Why This Matters
Incorrect SIPP labeling removes the lower fulfillment fee, costing sellers roughly $0.30 per unit and causing two‑day inventory delays, which can hurt sales velocity. Enforcing the two‑label rule and bundle labeling preserves cost savings and ensures timely stock availability.
Key Takeaways
- Two‑label rule: each SIPP unit must have a readable box‑level barcode (SSCC, AMZNCC, 2D‑BPS, GTIN‑14) and an item‑level barcode (UPC, EAN, GTIN‑12,...
- Case packs need an outer case label plus individual item‑level labels for every unit inside.
- Products sold as sets must display a prominent “Sold as a Set” label on the outermost packaging.
- Mislabeling caused $0.30 extra fee per unit for 10% of 500 units and a two‑day delay in inventory availability.
Recommended Actions
- →In Seller Central, navigate to Inventory > Manage FBA Inventory > Print Labels and generate both SSCC (box) and UPC (item) labels for each SKU.
- →Add a “Label Verification” station after the “Seal Box” step; scan both barcodes with a handheld reader to confirm readability before sealing.
- →Perform a weekly audit of 50 random SIPP units, record any missing or unreadable labels, and re‑label the batch before the next shipment.
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