Problems With Packaging: Chargeback Prevention Guide
This guide covers the SIOC (Ships in Own Container) chargeback — issued when a product designated as SIOC-eligible isn't prepped or packaged correctly for direct shipment to the customer. For this chargeback, you'll find what triggers it, how to avoid it, the current rate card, and the documentation Amazon requires if you need to dispute a charge.
1. Ships in Own Container (SIOC) Chargeback
SIOC (Ships in Own Container) chargebacks are issued when a product designated as SIOC-eligible is not prepped or packaged correctly for direct shipment to the customer — resulting in Amazon needing to overbox or repackage the item, generating packaging waste and additional costs.
What triggers this chargeback
Triggered when a product designated as SIOC-eligible arrives at Amazon's fulfillment center in packaging that can't ship directly to the customer without additional overboxing or repackaging. This defeats the purpose of the SIOC program, which aims to ship products in their own brand packaging without additional Amazon outer boxes.
Common triggers: shipping without a valid SIPP (Ships in Product Packaging) certification, packaging that fails the drop test, a missing or unscannable exterior barcode, or packaging dimensions/weight that don't meet SIOC standards. Amazon charges a packaging waste chargeback to recover the cost of repackaging.
SIOC chargebacks are charged as a fixed fee per unit based on shipping weight — not as a % of COGS. Shipping weight is the greater of unit weight or dimensional weight (L×W×H ÷ 5000). Rates range from €1.40 to €5.00 per unit shipped.
SIPP certification tiers
- Prep-Free Packaging (PFP): for sortable goods that can't ship in their own packaging. Reduces the need for Amazon prep — products ship without additional overboxing.
- Ships in Product Packaging (SIPP / SIOC): for large standalone items. Product packaging serves as the shipping container — no overboxing needed. Certification required before shipping.
- Frustration-Free Packaging (FFP): the highest tier — easy-to-open, curbside recyclable, free from unnecessary materials. Reduces fulfillment fees and enhances customer experience.
Certification process: 1. Evaluate the product for SIOC eligibility (size, weight, packaging strength) → 2. Certify — submit SIPP certification before the first shipment → 3. Test — conduct a drop test and packaging inspection → 4. Ship — product ships directly in its own packaging, no overbox. If any step is skipped or fails, a packaging waste chargeback is charged.
Exceptions
No chargeback if non-compliance was caused by an Amazon fulfillment center error or a confirmed issue with Amazon's SIOC designation, communicated in writing. Note: if packaging fails the drop test during Amazon's inspection, the chargeback is applied and the product will be overboxed at the vendor's expense. SIPP certification must be renewed if packaging is changed or updated — shipping with outdated certification triggers the chargeback.
How to avoid this chargeback
- Evaluate products for SIOC eligibility before designating them as SIOC — check dimensions, weight, and packaging strength.
- Submit SIPP certification through Vendor Central before shipping any SIOC-designated product — certification must be valid and current.
- Conduct internal drop tests and maintain packaging spec sheets — packaging must withstand transit without an outer box.
- Ensure a scannable barcode is on the exterior of the product packaging — readable without opening or overboxing.
Rate card
| Shipping weight | Chargeback rate |
|---|---|
| 0 to 3 kg | €1.40 |
| 3 kg to <9 kg | €1.90 |
| 9 kg to <12 kg | €2.60 |
| 12 kg to <15 kg | €3.30 |
| 15 kg or more | €5.00 |
Shipping weight = the greater of unit weight or dimensional weight (L×W×H ÷ 5000).
| Chargeback type | Shipment mode | Rate | Quantity basis |
|---|---|---|---|
| SIOC — Ships in Own Container (Packaging Waste) | All modes | €1.40 – €5.00 / unit, by shipping weight | Non-compliant units |
Required documentation for dispute
- Pre-shipment photos
Photos of packaging before shipment showing the product in its own container, with the SIOC/SIPP certification label visible and barcode scannable on the exterior.
- SIPP certification proof
Valid SIPP certification documentation from Amazon's certification program — confirming the product's packaging was certified for direct shipment at the time of the chargeback.
- Drop test records
Drop test records or packaging spec sheet confirming the packaging passed Amazon's required tests — include test date, results, and packaging specifications.
Approved submission
SIPP certified — product ships directly in its own brand packaging. Exterior barcode scannable, no overbox needed to scan. Drop test passed, packaging spec sheet on file.
Denied submission
No SIPP certification — product not approved for SIOC. Amazon required to add an overbox, triggering packaging waste. No drop test records submitted — packaging not verified.
For more information on this topic download the attached one-pagers at the bottom of this article.
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