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Amazon Incentive Program for Vendors

Amazon has been pursuing an initiative called "Frustration-free packaging" since 2008. Within the sustainability strategy, this is intended to significantly reduce packaging waste, some of which is more than unnecessary. In 2018, the program for the certification of Frustration-free packaging was also introduced in Europe. A program that can have an enormous impact on individual Amazon suppliers. Both in the negative and in the positive sense.

But what exactly does this program entail? What are Amazon's intentions and for whom and, above all, when is there a need for action?

In the following article, we answer precisely these questions. Amazon also wants to make a contribution to the environment. And this is now to be done by restructuring the packaging system. The focus here is on reducing the enormous mountains of waste generated by packaging materials such as unnecessary Amazon Um cartons. Amazon requires packaging of the right size and shape in order to save on shipping costs, among other things. In addition, packaging should be 100 percent recyclable in the future. End customers are also to benefit more from the new packaging in the future: The product packaging should better protect the items against damage and also be easy to open.

The first restructurings have already been underway in the According to Amazon figures, 305 million shipping cartons were saved in that year alone. shipping cartons were saved in that year alone. 

What does frust-free packaging mean for the end customer?

First and foremost, as described above, the end customer should benefit from from the simplified packaging and the shrinking packaging waste. benefit. Customers will receive the following notice if they want to purchase a product they want to buy that has Frustration-Free packaging: "The product you have selected is certified under the Frustration-Free Packaging program." certified." And further, "The item will be shipped in packaging that discloses the contents." The product is then shipped to the customer without additional Amazon Packaging shipped to the customer. If customers do not want this, then the the item to be additionally ordered in an Amazon outer box. This option is free of charge. Also, if the item is to be a gift and therefore the contents may not be visible, the option gift wrapping can be selected in the order form. Gift packaging can be selected. In this case, the article will also be shipped to the end customer in additional packaging. 

What does frust-free packaging mean for Amazon's sales partners?

For sales partners, the program will change a few things this year. a number of changes this year. Amazon expects that items from Amazon Suppliers will be certified according to the guidelines from the program. Specifically this applies (according to Amazon topic page: https://www.aboutamazon.de/nachhaltigkeit/verpackung/zertifizierung) to items larger than 45.5 x 34.0 x 26.5 cm or heavier than 12.3 kg. are. Excluded are items that are classified as dangerous goods (for example, products that contain lithium-ion batteries), as well as items with Prime Pantry or Amazon Fresh.

As an incentive to have the products correctly certified and to relieve suppliers of the transition costs incurred, Amazon has launched the so-called Amazon Frustration-Free Packaging Vendor Incentives Program. Here, the supplier is credited with an amount of €0.85 per correctly re-certified unit. The certifications must be completed in the period from Oct. 31, 2018, to Sept. 30, 2019, for the one-time credit to be awarded by Amazon. However, in contrast to the bonus payments for participation, fines will also be due for failure to certify. For those whose packages were not correctly certified, a fee of €1.70 per unit will apply from 01 October. The regulations affect only the vendor business, explained an Amazon spokesman.

What is the cost of certification for the "Frustration-free packaging" program?

There are different providers on the market for certification. German companies as well as various companies from England. Depending on the testing effort and the certification level (Level 1 = Frustration-free packaging ; Level 2 = Shipping in original packaging (SIOC)), there is a different cost. We have prepared an overview of different providers and their costs for certification. If you would like to have an insight here, please contact us briefly at kontakt@iconic-sales.com.

What can ICONIC do for do for you?

We recommend that all of our customers deal with the upcoming upcoming changes at an early stage and to examine the new regulations for packaging in detail. Of course we support you with the portfolio reconciliation, the certification process itself and the correct submission to Amazon.

You are welcome to contact us with your questions at any time. at any time. We will be happy to advise you without obligation about your options and opportunities and go through the certification process with you. Just write us an simply send an e-mail to kontakt@iconic-sales.com.


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