Amazon Plans To Deliver Without A Box

Would you believe that Amazon
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plans to deliver your next TV without wrapping it in an Amazon box? If you want a toaster or a television set, they will come in a manufacturer’s box without a new Amazon box wrapped around it. Of course, there will be stickers on the box to ensure delivery to the right address.

This is part of a new phase in Andy Jassy’s effort to be more profitable. In a Wall Street Journal article by Sebastian Herrera, we learn that the next phase in the tech giant’s overhaul is focused on its delivery process. Management hopes the elimination of the added Amazon box will appeal to customers who typically throw away the boxes merchandise is delivered in.

Last year, Amazon revamped its logistic network to ensure faster and more efficient deliveries. Eliminating or reducing packaging has become increasingly important for the company to maintain dominance, reduce costs, and reach its goals related to climate control.

“The recognition by a number of senior leaders was just that this is becoming more and more important,” said Pat Lindner who is Amazon’s first vice president of packaging and innovation. “There is a significant need for our company to take the next step to innovation around packaging.”

Around 11% of items the company delivers already arrive without extra packaging. It’s what the company calls “ship in own container”, according to Amazon. Customers are able to choose at checkout if they want extra packaging or prefer their order without it. (My examples above of toaster and TV purchases may be examples where customers can express their preferences.) It’s a natural next step to expand this ‘ship in own container’ concept and enjoy both labor and packing material savings.

To be sure, Amazon is using its formidable clout with packaged goods companies and other vendors to get them to improve their own packaging so that products will survive shipping and arrive at the customer’s home in good condition. Marketplace vendors, for example, can get incentives to eliminate extra packaging layers.

“Sometimes you get a giant box with a very little item inside that, quite frankly, was not breakable,” according to a customer quoted by the Journal. That has happened to many of us and often seems quite wasteful.

While the idea of eliminating the Amazon box (even more when the added packaging may be larger than necessary) has benefits, there is an issue that could pose problems if the Amazon package is not used. Manufacturer packages clearly identify the content and, unless the carton is hidden on delivery, that information could attract thieves. Therefore, the visibility of products may be risky, and recipients should be urged to provide some screen or camouflage to hide the goods. The neutral Amazon box has been a deterrent for pilferage in the past.

Overall, the benefits can far outweigh any risks and result in an overall improvement in packing standards. Many companies have already changed their packaging. For instance, Brita, a seller of filtered water pitchers owned by Clorox
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, changed its packaging in order to be eligible for Amazon’s program. It actually designed the product differently for physical stores and e-commerce sales. Brita’s redesigned box opens like a gift box. Another item with updated packaging was a set of screwdrivers. The package was reduced by about half to 125 cubic inches, and this has made it less expensive to ship 100,000 of these screwdrivers in a year across the U.S. to customers.

POSTSCRIPT: The effort by Amazon will obviously have a beneficial effect for most manufacturers. Amazon did not have experts to guide them originally when the company morphed from bookseller to general merchandise giant. The current administration, under CEO Andy Jassy, has an opportunity to make each sale more profitable. At the same time, it can gain customer approval for its efforts to be more environmentally friendly and potentially see that drive more business. That is an exciting and necessary prospect.