Size with new algorithm 1,393 inch 3 34.7% External cube reduction Size with old algorithm 2,133 inch 3 No Amazon Packaging Paperboard Envelopes Unpadded Bags Recyclable Paper Padded Mailer locker locker locker Padded Mailer locker locker locker Flexible Mailers locker Boxes Shipment Zero Packaging Flexibles Corrugated 8% of shipments 49% of shipments 43% of shipments Lower Waste Optimizing Materials Where Packaging Is Necessary When additional Amazon packaging is required to ship a product, we strive to optimize that packaging for increased recyclability along with reduced waste and carbon. We are transitioning to materials that are compatible with local paper and plastic recycling streams where we operate. We also support initiatives to expand the availability of curbside recycling infrastructure to the public through investments in The Recycling Partnership and the Closed Loop Infrastructure Fund. In the U.S., we expanded the use of our recyclable paper padded mailer, replacing nearly 70% of our mixed material bubble mailers in 2021. We also improved the composition of our single-use plastic packaging to use less material and incorporate more recycled content. In 2021, we increased the recycled content of our plastic film bags from 25% to 50% and that of our plastic padded bags from 15% to over 40%. Through these collective efforts, we avoided over 30,000 tons of plastic across North America in 2021. Algorithm Packaging Efficiencies Our Fulfillment Packaging Breakdown in 2021 when smaller products are suitable for flexible packaging, such as padded mailers and bags, which are up to 75% lighter than similar-sized boxes. Over the past five years, these algorithms have allowed us to reduce the use of corrugated boxes by over 35%. In 2021, we deployed data-science algorithms to optimize the number and size of boxes used for 12 geographies around the world. These algorithms—which help our fulfillment centers maintain the right mix of box sizes— now cover 65% of global box shipments, with plans to scale to 97% in 2022. We also introduced advanced fitting algorithms designed to reduce packaging specifically for shipments with multiple items. These new algorithms calculate the possible arrangements of products for best fit in a three- dimensional virtual package. Since launch, this technology has downgraded the size or type of packaging for 7% of total shipments and we plan to deploy it globally in 2022. In Europe, we switched from single-use plastic delivery bags to recyclable paper delivery bags and cardboard envelopes for orders shipped from fulfillment centers in 2021. We also removed a wide range of single-use plastic products from our European stores. In Australia, we replaced all single-use air pillows with 100% recyclable paper material to protect goods during shipping. Amazon also became a founding member of the India Plastics Pact after removing single-use, thin film plastics from Amazon packaging throughout India fulfillment centers in 2020. Using Technology to Optimize Packaging Type and Fit We use a range of boxes and mailers across our fulfillment network, and for every shipment that requires packaging, we use science-based systems to determine optimal packaging sizes and types. This starts with using machine learning to identify products that can be delivered safely with less material. Machine learning algorithms help us determine 2021 Sustainability Report Introduction I Environment I Society I Governance I Appendix 29