Amazon Wants to Reduce Packaging Waste Through Artificial Intelligence

Ordering products online is now part of everyday life for both companies and consumers. It is therefore no wonder that online retail is booming. In 2023, B2C e-commerce sales in Germany totalled 85.4 billion euros. This represents an increase of around one per cent compared to the previous year. Amazon is setting the tone in global online retail and was also able to further expand its sales in Germany above the industry average. Most recently, sales in Germany grew by twelve per cent to around 37.6 billion US dollars. 

However, the growth in online retail also means an increase in packaging. Cardboard packaging accounts for the largest proportion of shipping packaging. In addition to advantages such as stability, stackability and recyclability, however, standard shipping boxes are usually not tailored to the product. The result: oversized packaging with empty space that is filled with additional packaging material, resulting in a higher overall weight. This causes unnecessary packaging waste and CO₂ during transport.

For this reason, Amazon has set out to develop more sustainable solutions. "Our customers want recyclable packaging that creates as little waste as possible – and still protects the products during transport. Our top priority is to avoid additional Amazon packaging unless it is necessary," explains an Amazon spokesperson to the FACHPACK360° editorial team.

Customised Packaging Sizes

Amazon has now reached an important milestone in this endeavour and was recently able to report that over 50 percent of European shipments are now sent in smaller, recyclable packaging such as paper bags or cardboard envelopes. With a product range of several hundred million items, this was no easy task, which the company tackled with the help of artificial intelligence.  "We have developed machine learning algorithms that help us determine the best possible packaging for each individual order," said the company's spokesperson.

In recent years, Amazon has been able to significantly reduce the number of packages by identifying products that can be safely delivered in lighter, smaller packages. This is done using the Packaging Decision Engine – an AI model that determines the most efficient packaging options for shipping millions of items to customers. Data scientists have trained the model to understand a wide range of product attributes, such as shape and product shelf life, and to analyse customer feedback on the functionality of different packaging options. "Our programmes ensure that our packages use as little material as possible and are the right size to protect our customers' orders. Smaller and lighter packages mean we can deliver more orders in one trip, which results in fewer trips and less fuel consumption. All of this minimises our environmental footprint – and our costs,” the company spokesperson added.

For orders that require additional packaging, Amazon uses paper bags and cardboard envelopes that are up to 90 percent lighter than similarly sized boxes and require less packaging material. This means that there is less empty space in each package sent, which reduces waste for customers and makes recycling easier.

Amazon is researching further technological possibilities for reducing packaging in its new Operations Innovation Lab in Italy. "We have special equipment available here, such as an automated machine that creates customised packaging and an innovative labelling robot that automates the labelling of parcels that can be sent by Amazon without additional shipping packaging," explains the spokesperson. 

Automated packaging machines cut robust and flexible paper bags individually for each product. This reduces the packaging requirement for thousands of items. An integrated sensor scans products such as video games, kitchen appliances, sports or office supplies that were previously packaged in cardboard boxes. The machine cuts paper bags from paper rolls in real time. "By packaging items in 100 percent recyclable paper that is cut to fit perfectly and without padding, each envelope saves an average of 26 grams of packaging per shipment," explains the company spokesperson. One of the first machines of this type is located at Amazon's logistics centre in Mönchengladbach. 

Amazon is therefore relying primarily on technological advances to achieve its sustainability goals. The logic is clear: if the parcels are smaller, the drivers can fit a larger number of product deliveries into the vans. This leads to fewer journeys, which in turn helps the company to achieve its goal of operating CO₂-neutrally in its operations by 2040 at the latest.