Amazon recently announced additions to its FFP and SIOC incentive programs. It is inviting vendors to seek out innovations in packaging to improve customer experience, reduce waste, and cut back on shipping costs by saving space during package transit. This also helps Amazon get closer to reaching their Climate Pledge goal of being Net Zero carbon by 2040.
“Frustration-Free Packaging” and “Ships in Own Container” initiatives are not new, but there are new incentives and new certifications that should interest anyone serious about selling on Amazon and/or making an effort to help the environment. These incentives will be in effect from October 1, 2021 to December 31, 2022.
One of the driving concepts behind these incentives is the fact that e-commerce doesn’t rely on the same visual packaging that physical stores do to get a customer’s attention and make products look more appealing. Additionally, customer experience is improved when it isn’t overly difficult to open and access the products.
Incentives are paid per unit shipped and are based on three main components:
- SIOC certification showing that an item can be shipped in its product package and not require additional packing materials
- Reduction in cube (space-taking) boxes
- FFP Certification showing shipping materials are recyclable and easy to open
In its announcement, Amazon outlined the process of taking advantage of these new incentives in six steps:
- Determine the dimensions of your products in their current shipping packages.
- Change or redesign your packaging in a way that ensures product protection. Your product packing will have to be certified as either tier 1 or tier 2 FFP or SIOC. Learn about certifications guidelines here.
- Test and certify your packaging. Non-liquid or fragile items can be self-tested, and other products will need to pass the ISTA-6A test (a simulated test done through Amazon). Learn more about these tests here.
- Measure your new packaging. Part of the incentive you will receive is based on the reduction in size from your original packaging.
- Upload your certification to Amazon’s Vendor Central. Learn how here.
- Calculate your estimated incentive, using Amazon’s Calculator, which can be found in Amazon’s article about the incentive expansion.
By redesigning your packaging and obtaining your certifications, you can earn between $.08 and $6.49 per unit shipped. If you are a high-volume shipper, it would definitely be worth trying to qualify for this incentive.
Amazon would not be where it is today if, as a company, they weren’t continually trying to refine and improve their products, practices and procedures. Vendors who do likewise have a better opportunity for growth. German-American economist, Jordan Levitt, said that, “Creativity is thinking up new things, innovation is doing new things.”
This new incentive is aimed at keeping vendors interested in innovating and refining their own practices, products and procedures. If you can do more with your Amazon business in addition to helping reduce waste, put your creativity to the test and take advantage of this program! Click here for more information on how to succeed as an Amazon seller.