Posted on January 17, 2024 by Dennis Salazar

How Amazon SIOC and DTC Packaging Design Can Combine for Additional Savings

I recently read in Packaging World Magazine that Amazon SIOC (ships in own container) increased from 8% in 2021 to 11% in 2022. Undoubtedly, we will see that percentage increase again in 2023.

If you are unfamiliar with that acronym or term, it is when you provide Amazon product that is pre-packaged and ready to ship. In other words, Amazon does not have to place your box and product within an Amazon supplied branded box.

SIOC can potentially save you money and obviously it also saves Amazon money as well. Beyond savings resulting from process efficiencies, this shipping option also eliminates the cost of boxes, ancillary material such as tape and cushioning void fill, and the labor of the actual packing or repacking of your products.

This shipping option may help reduce your Amazon cost but please remember, costs are rarely eliminated, they are most often simply transferred from one party to another. How can we help you minimize that increased packaging cost, or better yet, create a double win scenario for you?

How can we help you reduce your fulfillment costs?

SIOC can indeed save you money but there are several factors to be considered in order to maximize your savings and minimize your own cost increase. Here are a few things we suggest you ask yourself if you are contemplating going down this fulfillment alternative.

  1. Will you have to upgrade your packaging to withstand the shipping process? Is a stronger, more rugged box now necessary? Can you gain the strength you need with relatively low-cost board upgrades?
  2. Are internal packaging changes now necessary? Were you already adding cushioning or void fill to your packaging design? Will you have to add more now? How about an internal insert? Can that potentially save you money on material and labor?
  3. Can your overall package dimensions be reduced? We have helped customers and clients save a tremendous amount of money on their direct shipping cost by helping them qualify for a lower dimensional rate bracket.

E-commerce Bulk Shipping versus Individual Parcel Shipping

Many e-commerce companies began by shipping your products in (master) cases to retail brick and mortar type stores. We have seen this hundreds of times with a variety of products such as candles, soaps, sauces and spices. The next step for many is working with a fulfillment operation like Amazon, which enabled you to continue shipping your products bulk, in cases with a 10, 12, 24, or other count.

Shipping your products individually or in small order quantities has numerous advantages for you, such as higher profit margins, and broadening your customer base. The key for you is to engage an experienced expert in how to best make this option work for you.

If in doubt, talk to us. We have been doing this since before e-commerce was popular or widespread. No matter what the product, anything ranging from personal care to hardware, our people have seen it all and can help you determine how to best proceed.

Call us at 630-551-1700 or contact us through this web site. We would love to learn more about you and your application, so we can help you maximize profits by minimizing all of your costs.

Related Posts: