The Amazon SIPP program, or Amazon Ships in Product Packaging, is leading many sellers to reconsider how they package their products.
In the Amazon marketplace, even small changes can improve customer experience and increase the chance of a customer remembering you are worth considering. And for many, the Amazon SIPP program represents exactly that.
But how would you know if it is a good fit for you? How does it work? What’s everything a seller need to consider before signing in?
We wrote this article with these questions in mind and compiled all relevant information about the program here so you are left with no doubts.
Amazon SIPP Program Overview
Ships in Product Packaging allows FBA sellers to ship products directly in their own custom packaging without Amazon interfering with other packaging materials. Basically, customers receive the product in the packaging supplied by the seller.
Three main insights about the program:
- The seller’s packaging becomes the shipping package.
- Eligible products receive a discounted FBA fulfillment fee.
- Products must meet Amazon’s packaging and testing requirements.
The fulfillment discounts range from $0.04 to $1.32 for each certified item.
How the Amazon SIPP Works
Amazon’s current enrollment process follows these general steps:
- Review the packaging and SIPP requirements.
- Group similar products for certification.
- Test a product from each group.
- Submit the test results and required documentation.
- Enroll the eligible products or variations.
Amazon recommends testing the largest or heaviest product in each group. You can self-test products under 50 pounds that do not contain liquids or sharp items. Other products may require testing through an ISTA 6 laboratory.
Product Packaging Requirements
SIPP packaging needs to protect the product during fulfillment just like an Amazon box. These are the approved formats:
SIPP Certification and Testing
All candidate packagings have to go through Amazon testing to check their ability to protect the content inside.
Amazon includes a drop-testing sequence and documentation requirements. Sellers must take photographs and submit post-test information as part of the certification process.
- Self-test is applicable if the product is non-fragile, does not contain liquids or sharp items, and is not granular with a diameter less than 1 inch.
- You need an ISTA 6 Lab Test if your product is fragile or contains sharp items or liquids.
How to Enroll in the Amazon SIPP Program from Seller Central
First you have to look for the program inside Seller Central. On the home page, click on Explore programs on the sidebar:
Then go to the Sustainability section and click on Learn more under Ships in Product Packaging (SIPP).
You will be redirected to the Amazon SIPP program home page. From there, click Enroll your products to continue the process.
On this page, Amazon will synthesize all you need to know to enroll. Most of that information is already here, in this article.
It is on this page where you will learn if there are any products in your catalog that would make a good fit for the program, at least in theory.
By scrolling down, you will see the full list of products in your catalog that can be enrolled, along with the required details you’ll have to provide if you decide to move forward.
This page shows when to update packaging (if needed), how to group products, how to test the required products, and how to submit certification information.
Amazon SIPP Eligibility Requirements
Eligible products include:
- Active FBA inventory
- Non-hazardous products
- Non-food products
- Products that can survive shipping in their own packaging
- Products and packaging that meet the minimum size requirements
Amazon’s materials specify a minimum product and packaging size of 15.24 cm × 10.16 cm × 0.95 cm, or 6 × 4 × 0.375 inches.
Packaging Type and Durability
Products grouped together need comparable packaging characteristics.
Products in the same a group must use the same packaging type, structure, and material. The material composition must also be identical.
The primary product in a group is the largest and heaviest product. Secondary products can have some differences in size or weight while remaining part of the same group.
Product Protection Standards
The basic test is simple: the product must remain usable and appropriately protected after testing. Amazon will guide you through the whole process once you enroll some products.
How Much Money Do You Save in the Amazon SIPP Program?
The big question.
Officially, Amazon says that the fulfillment discount is between $0.04 and $1.32 per certified item. It depends on the fulfillment needed.
You can easily check exactly how much you would save from inside Seller Central, in the enrollment page:
You may need to redesign packaging or pay for ISTA 6 testing before a product can qualify.
Take those additional costs into account.
I’m Now a Part of the Amazon SIPP Program. Now What?
Congratulations! Amazon continues to monitor SIPP products for performance.
Amazon states that certified products must meet damage-rate limits and can be automatically decertified if they do not.
- Note: Each inbound unit must have an exterior scannable label, per Amazon’s labeling requirements.
How to Decide if the Amazon SIPP Program Is Right for Your Products
Consider these factors:
- Sales volume: Higher unit volume can make the per-unit discount more valuable.
- Current packaging: Products already designed to withstand shipping may require fewer changes. Example: clothes & toys.
- Product durability: Fragile products require ISTA 6 testing.
- Packaging costs: Calculate the cost of producing the necessary packaging.
Conclusion
The Amazon SIPP program can reduce FBA fulfillment costs a lot over time. Before enrolling, compare the potential per-unit savings with testing, packaging, and production expenses.
For products that are durable and with enough sales volume, SIPP can be a practical way to improve fulfillment efficiency on Amazon.
Frequently Asked Questions about the Amazon SIPP Program (FAQs)
What is the Amazon SIPP program?
The Amazon SIPP program, or Ships in Product Packaging, allows eligible FBA products to ship to customers in their own packaging without additional Amazon packaging. This reduces Amazon fulfillment fees, a main selling point of the program.
What are the Amazon SIPP requirements?
Products must meet Amazon’s packaging and durability requirements. They have to be active FBA inventory, non-hazardous, non-food products that can withstand shipping in their own packaging.
How do I enroll in Amazon SIPP?
Sellers can start the Amazon SIPP enrollment process through Seller Central by going to Explore Programs, selecting Sustainability, and choosing Ships in Product Packaging (SIPP). From there, Amazon provides the products and information needed to continue enrollment.
Does Amazon SIPP require product testing?
Yes. Products must pass the applicable SIPP testing requirements before certification. Some eligible products can be self-tested, while fragile products or products containing liquids or sharp items require testing through an ISTA 6 laboratory.
How much can you save with Amazon SIPP?
Amazon states that certified products can receive a fulfillment fee discount ranging from $0.04 to $1.32 per item, depending on the fulfillment requirements. You can view the exact savings during the enrollment process in Seller Central.
Can SIPP products lose their certification?
Yes. Amazon continues to monitor certified products for performance.
Ready to See If Amazon SIPP Can Lower Your FBA Costs?
SIPP can create meaningful savings, but only if the numbers and packaging requirements make sense for your products. A few changes to your packaging could affect your margins, fulfillment costs, and customer experience.
Fill out the form below to connect with an eCommerce expert who can help you evaluate your Amazon SIPP opportunity and identify practical ways to improve your FBA strategy.
Submit your information below and let’s find where you can save.