Will Amazon’s Rollout Ignite Growth in the Right-Fit Boxing Solutions Market?

Summary

In May 2025, Amazon revealed plans to expand its use of automated right-fit boxing solutions across Europe. The company stated it would deploy more than 70 of these machines throughout the region during 2025, with a much broader rollout of hundreds more anticipated in the years to come. The initial focus will be on installations in the UK and Germany, with France, Italy and Spain expected to follow.

Amazon’s track record suggests this latest investment is not just a one-off experiment, but part of a broader strategic push. Historically, the retailer has been at the forefront of technological adoption, often setting industry benchmarks in the process. This pattern of investment has typically been motivated by a desire to boost speed, cut costs and reduce waste. These are all factors that automated boxing machines directly address by tailoring package sizes to specific items, reducing the need for excess material and improving delivery efficiency.

The implications for the right-fit boxer market are substantial. Amazon’s endorsement of this technology not only validates its use, but is likely to accelerate wider industry adoption. As one of the world’s largest retailers integrates these systems at scale, other players in the sector may be compelled to follow suit to remain competitive. In this context, Amazon’s latest rollout could serve as both a catalyst for uptake and a signal that automated packaging is becoming essential.

The Amazon effect

Amazon has consistently served as a bellwether for automation investment across the e-commerce industry, often leading the way in adopting new technologies well ahead of its peers. A prime example of this was during the pandemic, when Amazon rapidly expanded its US fulfillment network, doubling its capacity within just two years. This expansion was closely tied to a surge in warehouse automation spend, placing Amazon firmly ahead of the broader general merchandise e-tailer sector in terms of both scale and timing.

So why has Amazon made these investment plans?

Amazon’s decision to invest heavily in automated right-fit boxing solutions is likely driven by a combination of operational efficiency gains and growing regulatory pressures. From a logistics standpoint, tailoring packaging to the exact size of each order allows for significantly better space utilization across the ship-to-home network. By minimizing excess packaging, more parcels can be loaded onto each truck, improving route efficiency and enabling a higher volume of orders to be fulfilled per trip, an increasingly important factor in Amazon’s high-speed delivery model.

In parallel, regulatory developments in the European Union are also creating new pressures around packaging practices. Under the upcoming Packaging and Packaging Waste Regulation (PPWR), companies will be required from 2030 to limit packaging to what is strictly necessary, with e-commerce packaging needing to be at least 50% full. While there are exceptions for certain categories like toys and cosmetics, these are set to be reviewed by 2032. Although Amazon has not explicitly linked its investment to this regulation, the timing and geography of the rollout suggest it is a key consideration. By moving early, Amazon appears to be positioning itself to stay ahead of compliance requirements, while also setting a precedent for the rest of the market. As the implementation of PPWR draws closer, this move will likely serve as a signal to other retailers that packaging legislation is no longer a secondary concern, but a central part of long-term operational planning.

The wider e-commerce space

While operational efficiency and regulatory compliance are key drivers behind Amazon’s investment in automated packaging solutions, the continued strength of e-commerce itself is another important factor shaping this decision. As illustrated in the chart above, e-commerce penetration in the US has returned to peak-pandemic levels as a percentage of total retail sales. Although overall retail volumes are lower than they were at that time, the data points to a structural shift in consumer behavior and online shopping remains deeply embedded in the retail landscape.

Summary

In summary, Amazon’s investment in automated right-fit boxing solutions appears to be driven by a combination of strategic priorities: improving truck-loading efficiency, staying ahead of upcoming packaging legislation in Europe, and supporting the long-term growth of e-commerce. While the initial rollout is focused on the European market, a broader expansion, particularly into North America, could significantly boost the overall market size for right-fit packaging technologies.

Given Amazon’s track record as a leader in automation, this move also serves as an early indicator that wider adoption across the e-tailer landscape may not be far behind. As more retailers look to enhance efficiency and prepare for regulatory changes, right-fit solutions are likely to become a more prominent feature of modern fulfillment strategies.

In August, Interact Analysis will be publishing the first edition of our Packaging Machinery in End-of-Line and Warehouse Applications report. This study explores the automated packaging landscape in depth, covering technologies like right-fit boxing and offering detailed insights into how these solutions are evolving across both warehouse and manufacturing environments.