Amazon.Com, Inc
Amazon's CEO, Andy Jassy, hopes this move will resonate with customers concerned about the excess packaging associated with their orders, the Wall Street Journal reports.
The company has been revamping its logistics network to ensure faster and smoother deliveries.
Around 11% of Amazon's delivered items now arrive without additional packaging, categorized as "ships in own container." Customers can choose between extra packaging at checkout.
However, the company must work closely with suppliers to create packaging that can withstand shipping.
Amazon uses incentives and market power to encourage suppliers to improve packaging for efficient shipping.
However, Amazon faces practical and perception challenges, like determining how to handle items like toilet paper or fragile goods in terms of visibility and protection.
Amazon's packaging initiative follows its success in enhancing fast-shipping capabilities, utilizing regionalized models to bring products closer to customers and reduce travel distances.
The company uses artificial intelligence (AI) to test packages without additional containers before shipping.
While the program has seen success for various items, such as screwdrivers, Amazon acknowledges that certain fragile items like vinyl records still pose challenges for eliminating extra packaging.
Other companies like Brita have also participated in Amazon's packaging program.
Feedback from customer surveys and a decline in customer satisfaction related to product quality and shopping experience influenced the packaging initiatives.
Price Action: AMZN shares traded higher by 0.85% at $139.60 on the last check Monday.
