If you think about Amazon Prime members, which is 230 million people worldwide, and membership includes free shipping. As a Prime member you may start small, but soon rather than going to a store and looking for an item, you will likely see it on Amazon and it will seem easier to order it. Billions of packages are sent and equally Amazon makes billions of dollars from the subscription in 2023 it was a little over $40 billion. For years, if you ordered something, the package needed to have filler and that was supplied by plastic air pillows.
In an article by Michelle Chapman of the Associated Press, Amazon has announced it is shifting from plastic air pillows to recycled paper. The reason is two-fold: it is environmentally better and for Amazon the paper works better. (for a company the size of Amazon, it needed to be less expensive too).
Amazon began transition away from plastic air pillows in October at an automated fulfilment center in Ohio. The company was able to test and learn which resulted in a transition process including changing out machinery and training employees on new systems and machines.
During the testing, Amazon discovered the 100% recycled paper offers the same, if not better protection during shipping compared with plastic air pillows.
Linking to dividend paying companies, it is a long process to change processes and while the worthwhile goal of being environmentally friendly is good, for companies the cost to change machines and training people is more important. It took time to change from air pillows to paper and that is the way it should be. Companies are always examining process to find cost savings, hopefully the cost savings meats other corporate goals and the result can be relayed to the public to improve goodwill. There is a reason why it takes time in a large organization.
There are more questions than answers, till the next time – to raising questions.