Amazon continues leading the e-commerce world with new logistics programs that simplify operations, reduce costs, and boost customer satisfaction. In 2024, four key programs stand out to transform the way Amazon sellers manage their logistics: Ships in Product Packaging (SIPP), FBA New Selection, Amazon Global Logistics, and Warehousing and Distribution (AWD) 

1. Ships in Product Packaging (SIPP):

Amazon’s Ships in Product Packaging (SIPP) program emphasizes the importance of packaging in improving the shipping process. SIPP offers several benefits that impact a seller’s business, including the ability to ship products in their original packaging without additional Amazon-branded boxes.

SIPP Key Benefits:

• Cost Savings: Sellers can save between $0.04 and $1.32 per unit by reducing the need for extra packaging. Though seemingly small on a per-item basis, these savings can add up substantially over time, especially for high-volume items.
• Enhanced Customer Satisfaction: Products that arrive intact and in their original packaging are more likely to meet customer expectations. Damages during transit are reduced, resulting in fewer returns and higher customer satisfaction.
• Brand Visibility: Custom packaging options allow sellers to make a strong impression, reinforcing brand identity and loyalty.

Packaging Requirements for SIPP:

• Minimum Dimensions: 6x4x0.375 inches
• Box Specifications: Products must be in a six-sided box.
• Flexible Packaging: The maximum dimensions for items in bags or other flexible packaging are 18x14x6 inches and 7 pounds.
• Testing Requirements: Sellers must ensure their packaging meets Amazon’s standards. Self-testing would be acceptable in most cases if the product is non-fragile and does not contain liquids or sharp items.

Customer Choice at Checkout: During the checkout process, buyers can choose whether their order is packaged in additional Amazon packaging or not. This flexibility allows customers to choose a more sustainable option, enhancing their overall shopping experience.

2. FBA New Selection:

The FBA New Selection program is designed to help sellers introduce new products to Amazon FBA. This program benefits sellers looking to expand their offerings while minimizing upfront costs.

FBA New Selection Eligibility Criteria:

• Professional Seller Account: Sellers must have a professional seller account.
• Inventory Performance Index (IPI): A score of 400 or higher is required.
• New Parent ASINs: Only new products are eligible.
• No Arbitrage: Products should not be sourced through retail arbitrage.

Advantages of FBA New Selection Program for Sellers:

• Free Monthly Storage: Eligible products receive free storage for up to 90 days. Some categories, like apparel, could gain even longer periods.
• Free Liquidations: Sellers can liquidate unsold inventory within the U.S. without fees, reducing the financial risk associated with slow-moving products.
• Free Return Processing: Up to 20 items (some categories allow a higher limit) can be returned without incurring processing fees.
• 10% Rebate for Brand Registered Sellers: Sellers enrolled in the Amazon Brand Registry can receive a 10% rebate average on eligible ASINs, with a maximum of 50 ASINs qualifying for this benefit.

How to Enroll in FBA New Selection Program:

• New Sellers: Automatically enrolled in the program.
• Existing Sellers: You can enroll by searching for “FBA New Selection Program” in Seller Central, opening the help page, and clicking the enrollment link.

3. Exploring Amazon Global Logistics: 

Amazon Global Logistics is a tool for sellers who source products from Asia. This program simplifies the complex world of international shipping, offering a range of services that make managing supply chains easier.

Key Benefits of Amazon Global Logistics (AGL):

• Direct Shipping to Fulfillment Centers: Sellers can ship products directly from Asian warehouses to FBA, reducing lead times and lowering inventory costs.
• Comprehensive Shipment Management: Sellers can book, track, and make payments for shipments directly in Seller Central, ensuring full tracking and control over their cargo.
• Variety of Shipping Options: Sellers can choose from standard ocean freight, full container loads (FCL), less-than-container loads (LCL), or dedicated charter flights for faster shipping.

AGL Value-Added Services:

• Pickup: Amazon provides pickup services, further simplifying the logistics process.
• Labeling and Palletization: Amazon offers labeling and palletization services to ensure products are properly prepared for storage and distribution upon arrival.

4. Amazon Warehousing and Distribution (AWD):

In addition to the logistics programs, Amazon’s Warehousing and Distribution (AWD) service offers a low-cost solution for storing and distributing bulk inventory. This program is ideal for sellers with high-volume products that require long-term storage before being distributed to FBA or other non-Amazon channels.

Key Features of Amazon Warehousing and Distribution (AWD):

• Long-Term Storage: AWD is designed to store inventory over extended periods, ensuring that products are available when needed without the high costs associated with regular storage options.
• Eligibility: Most products are eligible, with the exception of Grocery, hazardous materials, jewelry, and watches.

How to Enroll in AWD: 

Sellers can easily enroll in AWD by navigating to the AWD page in Seller Central (Main menu > Growth > Explore Programs > Amazon Warehousing and Distribution) and clicking “Enroll.” In most cases, contacting support is recommended before enrolling

Conclusion

In 2024, Amazon continues to revolutionize logistics for sellers with programs like Ships in Product Packaging (SIPP), FBA New Selection, Amazon Global Logistics, and Warehousing and Distribution (AWD). These initiatives offer sellers a chance to reduce costs, streamline supply chain management, and improve customer satisfaction. By leveraging these programs, sellers can enhance operational efficiency, optimize inventory, and build stronger connections with their customers, ensuring long-term success on the Amazon platform.

If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to get in touch with the BellaVix Team. 

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