Don't do SIPP or SIOC
I've watched some videos claiming how "groundbreaking" this is, trust me, it's not. Firstly, this program has been around for a long time, and it has been saving Amazon a lot of money. It doesn't require any additional boxes, saves time for their packers, and reduces volume in mid-mile and last-mile delivery.
Here's why it's bad for sellers:
SIPP requires your product to be more rigid and less fragile than traditional FBA items. This means you will need to use padded mailers or boxes to secure the items, resulting in increased storage and fulfillment fees.
I have also encountered people suggesting to "Create your own branded experience." However, your product is not an iPhone or a MacBook; no one is likely to keep the box as it is considered trash by customers.
All of these concerns would be irrelevant if the benefit of SIPP was a 50% reduction in FBA fees along with reduced storage fees; however, this is not the case! The only advantage we get as sellers is 4 cents to $1.32 per unit.
If you sell apparel that's flat and in a bag or your product is already in a rigid box, go for it and save $0.08 per unit. However, do not go out of your way to repackage products for this program no matter how many times amazon asks you to do it.
1 reply
Seller_DPetgMN6a9UZU
I enrolled one of my products in SIPP and have noticed that 100% of my returns are classified as Customer Damaged. I suspect it has something to do with SIPP. It stinks because this is an expensive, heavy item.. so each return is costing me ~$50. I'm unenrolling now and going to see how returns are.