diff --git a/packages/js/e2e-core-tests/index.js b/packages/js/e2e-core-tests/index.js
index 265ecaf6522..e30dc29012b 100644
--- a/packages/js/e2e-core-tests/index.js
+++ b/packages/js/e2e-core-tests/index.js
@@ -4,16 +4,4 @@
 const allSpecs = require( './specs' );
 const fs = require( 'fs' );
 
-/**
- * Test set up configuration for the test scaffolding tool.
- */
-const packageInstallFiles = {
-	testSpecs: 'data/install-specs.json',
-	defaultJson: 'data/default-test-config.json',
-	initializeSh: 'data/initialize.sh.default',
-};
-
-module.exports = {
-	allSpecs,
-	packageInstallFiles,
-};
+module.exports = allSpecs;
diff --git a/packages/js/e2e-core-tests/installFiles/index.js b/packages/js/e2e-core-tests/installFiles/index.js
new file mode 100644
index 00000000000..202b83fcfda
--- /dev/null
+++ b/packages/js/e2e-core-tests/installFiles/index.js
@@ -0,0 +1,5 @@
+module.exports = {
+	testSpecs: 'data/scaffold-tests.json',
+	defaultJson: 'data/default-test-config.json',
+	initializeSh: 'data/initialize.sh.default',
+};
diff --git a/packages/js/e2e-environment/bin/scaffold.js b/packages/js/e2e-environment/bin/scaffold.js
index d20187693f0..ac74a756206 100755
--- a/packages/js/e2e-environment/bin/scaffold.js
+++ b/packages/js/e2e-environment/bin/scaffold.js
@@ -22,32 +22,31 @@ const [ command, packageName ] = args;
  * Install the test scripts and sample default.json configuration
  */
 if ( command == 'install' ) {
-	//**
-	const package = resolvePackage( packageName ).name;
-	if ( ! package.length ) {
+	// `package` is a reserved word
+	const pkg = resolvePackage( packageName ).name;
+	if ( ! pkg.length ) {
 		//@todo add error message
 		return;
 	}
-	const packageSlug = package.replace( '@', '' ).replace( /\//g, '.' );
-	const { packageInstallFiles } = require( package );
-	const { testSpecs, defaultJson, initializeSh } = packageInstallFiles;
+	const packageSlug = pkg.replace( '@', '' ).replace( /\//g, '.' );
+	const { testSpecs, defaultJson, initializeSh } = require( `${pkg}/installFiles` );
 
 	// Write sample default.json
 	if ( defaultJson ) {
 		const defaultJsonName = `config/default-${packageSlug}.json`;
 		const defaultJsonSample = resolveLocalE2ePath( defaultJsonName );
-		const packageJsonSample = resolvePackagePath( defaultJson, package );
+		const packageJsonSample = resolvePackagePath( defaultJson, pkg );
 		fs.copyFileSync( packageJsonSample, defaultJsonSample );
-		console.log( `\nCreated sample test configuration to 'tests/e2e/${defaultJsonName}'.\n` );
+		console.log( `Created sample test configuration to 'tests/e2e/${defaultJsonName}'.` );
 	}
 
 	// Write sample initialize.sh
 	if ( initializeSh ) {
 		const defaultInitName = `docker/${packageSlug}.sh`;
 		const defaultInitPath = resolveLocalE2ePath( defaultInitName );
-		const packageInitPath = resolvePackagePath( initializeSh, package );
+		const packageInitPath = resolvePackagePath( initializeSh, pkg );
 		fs.copyFileSync( packageInitPath, defaultInitPath );
-		console.log( `\nCreated sample test container initialization script to 'tests/e2e/${defaultInitName}'.\n` );
+		console.log( `Created sample test container initialization script to 'tests/e2e/${defaultInitName}'.` );
 	}
 
 	// Write test files
@@ -55,7 +54,7 @@ if ( command == 'install' ) {
 		return;
 	}
 
-	const testsSpecFile = resolvePackagePath( testSpecs, package );
+	const testsSpecFile = resolvePackagePath( testSpecs, pkg );
 	const specs = fs.readFileSync( testsSpecFile );
 	const tests = JSON.parse( specs );
 	const { active, deprecated } = tests;
@@ -79,15 +78,26 @@ if ( command == 'install' ) {
 	}
 
 	if ( active && active.length ) {
+		const blankLine = '';
 		const eol = "\n";
 		const autoGenerate = sprintf( '/* This file was auto-generated by the command `npx wc-e2e install %s. */', packageName );
 		let importLineFormat;
 		if ( testFormat.toLowerCase() == 'cjs' ) {
-			importLineFormat = sprintf( "const {%%s} = require( '%s' );", package );
+			importLineFormat = sprintf( "const {%%s} = require( '%s' );", pkg );
 		} else {
-			importLineFormat = sprintf( "import {%%s} from '%s';", package );
+			importLineFormat = sprintf( "import {%%s} from '%s';", pkg );
 		}
 
+		// Create the entire folder structure if not present
+		let specFolderPath;
+		const rootFolders = [ '../../tests', '../e2e', 'specs' ];
+		rootFolders.forEach( ( folder ) => {
+			specFolderPath = resolveLocalE2ePath( folder );
+			if ( ! fs.existsSync( specFolderPath ) ) {
+				fs.mkdirSync( specFolderPath );
+			}
+		} );
+
 		// Loop through folders and files to write test scripts.
 		for ( let f = 0; f < active.length; f++ ) {
 			const testFolder = active[ f ];
@@ -98,7 +108,7 @@ if ( command == 'install' ) {
 			}
 
 			const specFolder = testFolder.name.length ? `specs/${testFolder.name}` : 'specs';
-			const specFolderPath = resolveLocalE2ePath( specFolder );
+			specFolderPath = resolveLocalE2ePath( specFolder );
 
 			// Create the test folder if it doesn't exist.
 			if ( ! fs.existsSync( specFolderPath ) ) {
@@ -131,19 +141,17 @@ if ( command == 'install' ) {
 					importPrefix = eol;
 				} else {
 					testSeparator = ', ';
-					testTerminator = '';
+					testTerminator = ' ';
 					importPrefix = ' ';
 				}
 				const testImport = testFile.functions.join( testSeparator ) + testTerminator;
-				// '' adds a blank line
-				buffer.push( sprintf( importLineFormat, importPrefix + testImport ), '' );
+				buffer.push( sprintf( importLineFormat, importPrefix + testImport ), blankLine );
 
 				// Add test function calls and write the file
 				let functionCalls = testFile.functions.map( functionName => functionName + '();' );
-				buffer.push( ...functionCalls );
+				buffer.push( ...functionCalls, blankLine );
 				fs.writeFileSync( testFilePath, buffer.join( eol ) );
 			}
-			console.log( eol );
 		}
 	}
 
diff --git a/packages/js/e2e-environment/utils/test-config.js b/packages/js/e2e-environment/utils/test-config.js
index 430bbc6da59..35d369cf182 100644
--- a/packages/js/e2e-environment/utils/test-config.js
+++ b/packages/js/e2e-environment/utils/test-config.js
@@ -32,7 +32,19 @@ const resolvePackage = ( packageName, allowRecurse = true ) => {
 	const resolvedPackage = {};
 
 	try {
-		resolvedPackage.path = require.resolve( packageName );
+		const resolvedPath = path.dirname( require.resolve( packageName ) );
+		const buildPaths = [ 'dist', 'build', 'build-modules' ];
+
+		// Remove build paths from the resolved path.
+		let resolvedParts = resolvedPath.split( path.sep );
+		for ( let rp = resolvedParts.length - 1; rp >= 0; rp-- ) {
+			if ( buildPaths.includes( resolvedParts[ rp ] ) ) {
+				resolvedParts = resolvedParts.slice( 0, -1 );
+			} else {
+				break;
+			}
+		}
+		resolvedPackage.path = resolvedParts.join( path.sep );
 		resolvedPackage.name = packageName;
 	} catch ( e ) {
 		// Package name installed is not the package name.