<story><title>Amazon rolls out machines that pack orders and replace jobs</title><url>https://www.reuters.com/article/us-amazon-com-automation-exclusive-idUSKCN1SJ0X1</url></story><parent_chain><item><author>sandworm101</author><text>I&amp;#x27;m surprised that Amazon still uses boxes.  They have the market power to insist manufacturers comply with amazon-specific packaging requirements.  Why not just insist that all products be packaged in postal-compatible packaging?  Then the amazon warehouse robot need only slap a label on the product and throw it in the shipping bin.&lt;p&gt;Another answer would be to have products packaged in standard, or at lease square, boxes that could be thrown into larger shipping boxes.&lt;p&gt;Or do away with the warehouse altogether and have products ship directly from manufacturers.  I wonder if anyone has tried that?</text></item></parent_chain><comment><author>blairanderson</author><text>You mentioned two processes that have been in place with Amazon Vendors&amp;#x2F;Manufacturers for many years.&lt;p&gt;1. Amazon Direct Fulfillment (dropship): Order is shipped directly from the manufacturer to the customer. Amazon pays for the shipping label and contractually &amp;quot;own&amp;quot; the item once it leaves the MFR doors. Amazon incentivizes Manufacturers by paying the freight and loosening shipment deadlines. [1]&lt;p&gt;2. Ships In Own Container (Amazon SIOC) certification puts the responsibility on the manufacturer to certify their products can be shipped without extra packaging. MFR pays for the testing&amp;#x2F;certification from a third-party.  After July 3st 2019, Amazon will charge&amp;#x2F;fine manufacturers $2&amp;#x2F;unit received that are NOT SIOC certified and greater than a certain dimensional threshold. [2]&lt;p&gt;Its a tough economic balance for Amazon because they want to keep shipping stuff, but many MFRs will literally &lt;i&gt;stop&lt;/i&gt; selling items to Amazon on July 31st because the costs of SIOC certification are greater than the estimated product profitability.&lt;p&gt;Source: I am a consultant for Manufacturers that sell to Amazon. [3]&lt;p&gt;1: &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.andersonassociates.net&amp;#x2F;guides&amp;#x2F;amazon&amp;#x2F;what-is-dropshipping&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.andersonassociates.net&amp;#x2F;guides&amp;#x2F;amazon&amp;#x2F;what-is-dro...&lt;/a&gt;&lt;p&gt;2: &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.andersonassociates.net&amp;#x2F;2018&amp;#x2F;frustration-free&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.andersonassociates.net&amp;#x2F;2018&amp;#x2F;frustration-free&amp;#x2F;&lt;/a&gt;&lt;p&gt;3: &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.andersonassociates.net&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.andersonassociates.net&lt;/a&gt;</text></comment>
<story><title>Amazon rolls out machines that pack orders and replace jobs</title><url>https://www.reuters.com/article/us-amazon-com-automation-exclusive-idUSKCN1SJ0X1</url></story><parent_chain><item><author>sandworm101</author><text>I&amp;#x27;m surprised that Amazon still uses boxes.  They have the market power to insist manufacturers comply with amazon-specific packaging requirements.  Why not just insist that all products be packaged in postal-compatible packaging?  Then the amazon warehouse robot need only slap a label on the product and throw it in the shipping bin.&lt;p&gt;Another answer would be to have products packaged in standard, or at lease square, boxes that could be thrown into larger shipping boxes.&lt;p&gt;Or do away with the warehouse altogether and have products ship directly from manufacturers.  I wonder if anyone has tried that?</text></item></parent_chain><comment><author>PorterDuff</author><text>Smart dudes have wrestled over those problems for years.  I think the strongest case for dropshipping would be new cars. The dealerships have presented a problem for people for years, but they are politically well connected.&lt;p&gt;It&amp;#x27;s a lot easier for a manufacturer to send a boxcar of toilet paper to a warehouse (Amazon or otherwise) than to mail the case to you.  Lacking Amazon or Safeway, they&amp;#x27;d probably just recreate a similar system in the form of a co-op.&lt;p&gt;In any case, I don&amp;#x27;t doubt they&amp;#x27;ve gamed and spreadsheeted the bejeepers out of dropshipping, returnable containers, standardized containers, third party (USPS) vs. self shipping vs. drones, etc.</text></comment>