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Nov 23, 2024 12:00AM

Amazon's SIPP chargeback fees set to increase by 190% in 2025. The new fees will affect larger products and reach up to $4.40/€5.00/Β£4.30 per unit. Vendors can avoid charges by updating packaging to meet SIPP requirements and reviewing ASIN certification status.

Martin Heubel | Link to post

Still ignoring #Amazon's SIOC/SIPP packaging requirements? It's about to get (very) expensive! πŸ’ΈπŸš¨

The online retailer is set to update its SIPP (Ships In Product Packaging) chargebacks:

From 1 January 2025, products greater than 45.5 x 34 x 26.5 cm or >12.4kg in the EU/UK πŸ‡ͺπŸ‡ΊπŸ‡¬πŸ‡§ and 18 x 14 x 8 in or > 20 lb in the US πŸ‡ΊπŸ‡Έ will see SIOC chargebacks rise by up to +190% vs 2024.

The chargeback reaches up to $4.40 / €5.00 / Β£4.30 per unit and erodes vendor margins significantly!

So what are the benefits of SIPP packaging?

βœ… Cheaper fulfilment costs
βœ… No need for outer packaging
βœ… Faster processing times in warehouses

How can you avoid this chargeback?

πŸ‘‰ Educate your teams on the (rising) cost of inaction
πŸ‘‰ Update your packaging for heavy/bulky items
πŸ‘‰ Review ASIN certification status in Vendor Central

P.S. Can't update your packaging? Expect Amazon to put a high price tag against any chargeback waivers for SIPP/SIOC in your upcoming AVN.

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What do you think of Amazon increasing SIPP chargebacks?

Let me know in the comments!

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