For decades the growth of e-commerce packaging has steadily increased. As any industry grows, there are going to be challenges. E-commerce has tried to shift business away from traditional retail or business to business (B2B) by offering free shipping and faster ship times to consumers. With a wide array of products to support customer needs; it has come to a point where on-line commerce entities like Amazon are pushing back against their vendors due to the increased expenditures on packaging and logistic costs.
In September 2018, Amazon rolled out a “Vendor Incentive” program. To break it down simply, Amazon wants their vendors to reduce their packaging and optimize it to their fulfillment systems capabilities or be penalized per each unit being shipped. Here are a few details:
- Current vendors or potential vendors are being asked to reduce the number of packaging components being used to shipped into and out of Amazon to be more sustainable and reduce the cost of shipping (dimensional weight).
- Vendors in North America need to ensure their packaging meets Amazon design and ship testing requirements by August 2019 and October 2019 in European Union countries (some products are excluded).
- Vendors who do not meet Amazon’s new requirements by the dates above will be charged $1.99 USD per unit received.
- Amazon is offering a discounted credit for products with packages validated to Amazon specifications up until July 31, 2019 in North America and September 30, 2019 in the European Union.
It is believed that other e-commerce businesses may implement similar policies if they have not already. These developments are causing many companies to scramble to address the new requirements.
Pack Protocols LLC can support your product’s design, development and testing needs to meet the new Amazon requirements and alleviate worries. Contact us today at +1 657-204-6093 or [email protected]