CPGs now have to meet Amazon standards

Amazon is asking CPG brands to revamp their product packaging to be sturdier, cheaper to ship, and more environmentally friendly.

Beginning Aug. 1, Amazon will charge manufacturers with products identified on its packaging improvement program an additional surcharge of $1.99 per item shipped on non-compliant products, according to a Forbes article. CPG manufacturers that upgrade their packaging prior to the deadline of Aug. 1 will be rewarded with a credit of $1 for each item shipped.

“The idea is to reimburse brands for the cost of fixing their packaging,” says the founder of packaging consulting company Fuseneo, Brent Lindberg. “Brands that upgrade their packaging might even make substantial money from the effort before the August deadline, beyond just offsetting the cost of fixing their packaging.”

To read the Forbes article, click here.