ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

All About Amazon's Sustainable Packaging Solutions to Tackle a Massive Heap of Cardboard Boxes

Amazon highlighted that around 11% of global orders utilized original manufacturer packaging, signaling a drive to diminish dependence on their traditional brown boxes.
PUBLISHED APR 6, 2024
Cover Image Source: Amazon Boxes are prepared for delivery at Amazon's Robotic Fulfillment Centre | Photo by Nathan Stirk | Getty Images
Cover Image Source: Amazon Boxes are prepared for delivery at Amazon's Robotic Fulfillment Centre | Photo by Nathan Stirk | Getty Images

The amount of cardboard boxes that Americans use for shipping products every year can be stacked up to build a mile-high wall around the entire country or to pave a road stretching from New York City to Los Angeles three times over. To manage that kind of waste, approximately 11% of global Amazon orders in 2022 utilized original manufacturer packaging.

Image Source:  An employee pulls a pallet jack stacked with cardboard at the Amazon.com MPX5 fulfillment centre | Photo by Emanuele Cremaschi | Getty Images
Image Source: An employee pulls a pallet jack stacked with cardboard at the Amazon MPX5 fulfillment center | Photo by Emanuele Cremaschi | Getty Images

As part of its Ships in Product Packaging program, Amazon first identifies products that can be shipped without their characteristic brown packaging. It then reaches out to the manufacturers of these items, and products undergo stringent laboratory testing to ensure that they can endure the rigors of transportation, including bumps and shakes.

"We qualify products ahead of time to make sure that they are going to be delivered to customers without damage. Then we simulate the e-commerce fulfillment process as part of that testing process so as products are enrolled in the program, we make sure they meet that minimum standard to arrive safely," said Kayla Fenton, Amazon's senior manager of packaging innovation.

The testing protocols vary depending on the nature of the product. For instance, testing procedures for liquids differ from those for stuffed animals. The results of these tests are then fed into computer systems, which scour Amazon's product inventory to identify other items suitable for inclusion in the program. "For example, if a vendor sells a red tee-shirt, chances are the blue tee-shirt will perform just as well," Fenton said.

Each product undergoes testing on five separate occasions. Any failure during testing helps Amazon in identifying issues and devising preventive measures for the future. In addition to that, if customers frequently complain about damaged items and initiate returns, Amazon may opt to revert to using traditional packaging.

Image Source:  Amazon workers unloading boxes from a truck in Manhattan| Photo by Kena Betancur | VIEWpress | Getty Images
Image Source: Amazon workers unloading boxes from a truck in Manhattan| Photo by Kena Betancur | VIEWpress | Getty Images

Go North Group, a company specializing in home and garden items, health products, sports gear, and pet supplies, received an invitation to participate in Amazon's "ships in packaging" initiative. Johan Stellansson, their supply chain director, revealed that through testing, they discovered that 80% of their products could be shipped without additional packaging.

Remarkably, even their MalsiPree portable water bottle for dogs fell into this category. For certain products, such as their pet stain and odor removers packed in boxes, only a minor addition of extra tape was necessary to ensure the box's resilience during transit. But larger products requiring substantial padding did not meet the program's criteria.

Stellansson noted that this prompted the company to reassess the feasibility of continuing to offer such products on Amazon. "We wouldn’t develop a new product unless we can ship it in the manufacturer’s boxes," he said.

Image Source:  Amazon workers unloading boxes from a truck. The company will find recyclable alternatives to reemplazed the use of plastic padded bags for parcel shipments in order to impact on the environment, particularly the oceans | Photo by Kena Betancur | VIEWpress | Getty Images
Image Source: Amazon workers unloading boxes from a truck | Photo by Kena Betancur | VIEWpress | Getty Images

Amazon initially extended invitations to vendors to participate in the program, later including sellers as well. Vendors maintain close collaboration with Amazon, whereas sellers operate with more autonomy. With Amazon strategically situating warehouses closer to customers, they are now able to ship a greater number of items without the need for additional packaging.

Nonetheless, certain products, such as personal items, still require packaging for privacy reasons. During the checkout process, customers have the option to select whether they prefer shipping in the original packaging.

Efforts to reduce packaging waste include substituting plastic with paper materials and transitioning a fulfillment center in Ohio to utilize 100% recyclable paper.

Apart from this, Amazon is exploring reusable packaging solutions, although encouraging customers to return such packaging poses a challenge.

MORE ON MARKET REALIST
Vance has had varied opinions about the technology in the last year, some good and some bad.
15 hours ago
The studio audience loved the segment as they cheered the two on whole-heartedly.
15 hours ago
While Warsh compared the current situation with the internet boom, economists differ on the opinion.
15 hours ago
He suggested some changes to be made to the 401(k) scheme to help Americans save more.
18 hours ago
The retailer reverted to a traditional method of doing retail business, which many have hailed.
18 hours ago
Costco's notice comes several days after the gift card provider filed for bankruptcy.
19 hours ago
Industries that are susceptible to automation include manufacturing, lodging, catering, retail, wholesale, and extraction.
21 hours ago
The man in question even went on national television to criticize exactly what he ended up doing.
1 day ago
The country had added 130,000 jobs in January and inflation remained at 2.5%.
1 day ago
Harvey says chitlins are the reason he can “never get COVID.”
1 day ago
The administration has been urged to roll back their policies and lower costs for tourists.
1 day ago
The product might contain a toxin that is produced by mold in fruits, especially apples.
1 day ago
US energy policy under Trump intends to lift drilling restrictions and deregulate to lower equilibrium oil prices.
1 day ago
The product was produced on January 14 and distributed to a number of states.
1 day ago
While the hefty tax refunds can boost consumer spending, the demand may also drive up inflation.
1 day ago
The government site further stated that the recall concerns MK04 air purifiers, with serial numbers beginning with "BN."
1 day ago
Goldman Sachs CEO David Solomon also spoke about how the IPO activity in the US is now gaining momentum.
2 days ago
Last year, Hyatt Hotels Corporation decided to pause the complimentary breakfast at about 40 locations.
2 days ago
Many companies in the U.S. are now using enterprise AI systems that learn how an employee works.
2 days ago
Some Americans may see smaller refunds this year compared to the past few years.
2 days ago