Winning with ecommerce

Winning with ecommerce // Amcor products and services

Winning with ecommerce // Amcor products and services

www.amcor.com/ecommerce

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ECOMMERCE IS A STORY OF GROWTH and egroceries is a sleeping giant

The opportunity is too big to ignore Global retail ecommerce sales will reach $4.5 trillion by 2021: a threefold increase from $1.3 trillion in 20141.

Grocery is changing The grocery sector, like other awakening giants such as the over-the-counter pharma market, has been slower to the ecommerce revolution but it is now set for exciting growth.

A survey by the Food Marketing Institute and Nielsen found that from 2016 to 2018, the number of US consumers making CPG purchases online almost doubled.2 And the picture is no different in other regions. Consumers’ desire for convenience is now being met by online retailers who are hearing the call.

Online FMCG sales growing 4x faster than brick-and-mortar3 1x

4x

1. www.shopify.com 2. www.nielsen.com 3. www.nielsen.com

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Winning with ecommerce // Amcor products and services

Online grocery channel size by 2023 % = compound annual growth Rate (CAGR)4 UK

+20%

+9%

$22bn

+31%

$6bn UNITED STATES

$196bn

FRANCE JAPAN

+8%

$17bn CHINA

ECOMMERCE CALLS FOR ECOMMERCE-READY PACKAGING Packaging can help you overcome ecommerce challenges Increasingly complex supply chains, a need to protect products against breakages, pressure to use more sustainable solutions and your brand’s focus on growth and brand loyalty – ecommerce adds fresh challenges in an already demanding consumer goods market.

However, the good news is, your brand’s packaging choices can meet these challenges head on.

4. www.igd.com 5. www.pmmi.org

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+8%

$47bn

Damage prevention is top of list 58% of consumers would consider purchasing from a competitor or simply refuse to purchase again if they received a damaged or broken product from an online retailer5.

Ecommerce challenges

Packaging’s role in the solution

Higher risk of damage and leakages

STRONGER Protect against breakages and leakages

Complex and more expensive supply chain

OPTIMIZED Better space/weight optimization

Customer expects more sustainable packaging

MORE SUSTAINABLE Minimise food waste and the need for secondary packaging with effective and more sustainable primary packaging

Loss of in-store customer engagement

SMART Unlock customer engagement and brand protection through smart technology

Market pressure for newness and fast product development

FAST Maintain fast product development and ‘test & learn’ launches through digital simulation and digital printing

What is ISTA 6 Amazon?

ISTA 6A is the most frequently used standard to validate simulating the journey of package from manufacturer to the consumers’ doorstep. ISTA and Amazon developed ISTA 6A test protocols to ensure products arrive undamaged and intact.

EcommerceReady packaging

Journey from manufacturer to consumer’s doorstep

At home packaging

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Winning with ecommerce // Amcor products and services

GET YOUR PRODUCTS ECOMMERCE READY Amcor’s products & services Wherever you are in your ecommerce packaging journey, Amcor offers services and solutions to support you in this growing channel.

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In testing with select customers

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Services

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Pre-made solutions

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// Innovate for Ecommerce Best suited when What is it

Benefits

You want to innovate for ecommerce or omnichannel.

• Delight the consumer with an innovative, on-brand solution.

• A full re-design of a current pack.

• A new product development to meet the specific needs of your product and channels.

• Consider your entire supply chain - design with all channels in mind.

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Winning with ecommerce // Amcor products and services

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In testing with select customers

// Optimize for Ecommerce

Best suited when What is it

Benefits

Optimizing a current pack for ecommerce or for switching to a new packaging solution that

• Reduce lead time.

• Digitally simulate the behavior and identify potential issues of different packaging solutions to optimize format and performance in the ecommerce channel.

• Receive improvement proposals.

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• Reduce costs in R&D development and repeated prototyping.

• Reduce costs from repeated ISTA 6A testing failures.

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// Test your Ecommerce Readiness Best suited when What is it You want to keep your current pack and determine it’s success in ecommerce.

Benefits

• Amcor ecommerce • Confidence that your laboratories physically test the product will withstand ecommerce readiness of your ecommerce logistics. products.

• Reduce product damages • Test your products against (breakages/leakages). the most common ecommerce • Protect your product, brand test protocol such as ISTA perception and consumer 6-Amazon or ASTM. relationship.

• Proceed to ISTA and/or • Reduce fees from Amazon Amazon certification as (where applicable). needed.

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Winning with ecommerce // Amcor products and services

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// Switch with Confidence Best suited when What is it

Benefits

You need a quick packaging solution so want to use an existing ecommerce packaging format.

• Fast results - quickly move your products to ecommerce ready packaging for a fast launch.

ISTA 6A pre-tested ecommerce-ready Amcor packaging.

• Confidence - use pretested packaging for confidence in your brand’s ecommerce experience.

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// Key Definitions ECOMMERCE-READY EXPLAINED What does EcommerceReady stand for?

Ecommerce-Ready is defined as passing ISTA-6A tests for ecommerce packaging and meeting Amazon’s Prep-FreePackaging (PFP) requirements. Ecommerce-Ready status is a positive indicator that Amcor packaging with the same structure, size, and similar contents will also pass testing.

ECOMMERCE-READY PRODUCTS Switch with confidence Amcor has a growing number of Ecommerce-Ready products available off the shelf which have been pre-tested and passed under ISTA 6A conditions.

Ecommerce-Ready packaging provides a positive indication of your packaging’s performance in the ecommerce channel and is ideal if you want a quick solution which will ensure your product arrives safely with consumers.

Product-specific testing can then be carried out at Amcor’s ecommerce testing labs for official ISTA and Amazon certification as required.

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Winning with ecommerce // Amcor products and services

FLEXIBLE PACKAGING Dry products

Wet products retort/pasteurization

Dry products ≤ 5 Kg

≤ 2 Kg

≤ 250 g

Stand-Up Pouches

Dry products

SingleLip Bags

Dry products

≤ 300 g ≤ 200 g

Soft Pack / “Gusset Pack”

Pillow Bags

Ecommerce-ready status is a positive indicator that Amcor packaging with the same structure, size, and similar contents will also pass testing. These products shown have been tested as either pre-made or reel solutions for our customers. Amcor offers ISTA-6 testing services and can help gain ecommerce certification for your specific packaging and product contents.

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Recyclable means in practice in countries where collection and recycling streams exist. For information on recyclability in your market, our packaging experts can advise you.

RIGID PACKAGING Stock solutions Panel (double Island)

Panel

Panel

Panel 20oz

10oz

Power FlexTM Ring Neck

12oz

Active HingeTM

12oz

Power FlexTM Long Neck

16oz

Active HingeTM

16oz

Power FlexTM Long Neck

20oz

OmniPackTM

Power FlexTM Dome

500ml

OmniPackTM

Power FlexTM Ribbed

20oz

OmniPackTM 13oz

10oz

12oz

10oz 8oz

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Winning with ecommerce // Amcor products and services

MAXIMISE THE ECOMMERCE CHANNEL Amcor’s supporting ecommerce services Ecommerce is an opportunity for brands to engage with consumers like never before.

Digital short-run printing

DigitalPrint

by Amcor

More than 25% of total revenue and profits across industries comes from the launch of new products, so it’s vital companies have a robust launch strategy.6 For many retailers, ecommerce has become the perfect testing ground.

Digital, short-run printing services enable brands to move quickly, getting new flavors, recipes and formulas on the

MaXQ

by Kezzler & Amcor

Smart packaging transformation Smart packaging (also known as ‘intelligent’ or ‘active’ packaging) such as Amcor’s MaXQ and InTact, enables brands to increase consumer engagement and loyalty by building a personalized, targeted, two-way conversation. It also allows brands to track and trace individual products, helping to fight counterfeiting, provide reassurance of product safety and optimize the supply chain.

6. www.mckinsey.com

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Emerging technologies can seamlessly integrate into packaging – and they go above and beyond customer engagement. They provide real-time data about consumer behavior and inventories, build trust by proving authenticity, and highlight supply chain inefficiencies.

WHY AMCOR Expert capabilities Amcor helps businesses, large and small, optimize their supply chain and take advantage of the growth opportunities that ecommerce can provide while delighting consumers with more sustainable, convenient and unique packaging

• Global

research and development capabilities

• Ecommerce-Ready packaging

solutions

• Certified

membership to Amazon Packaging Support and Supplier Network (APASS)

• ISTA testing and simulation services • Network of partners across • SMART,

the ecommerce ecosystem

proprietary and proven traceability technology

LEARN MORE Find out how Amcor can get your packaging ecommerce-ready or reach out directly to us: e -mail

ecommerce@amcor.com

www.amcor.com/ecommerce 15

Winning with ecommerce // Amcor products and services

e-mail

ecommerce@amcor.com www.amcor.com