Packaging is mostly an afterthought in every type of business. However, if you look closely, you will find it to have a great impact on the overall performance of the company. While most businesses narrow down their focus on the features of the product, marketing, and brand reputation, they often forget that the first physical interaction of the customer with the brand will be through packaging only.
Right from the material and size to the shape and feel of the packaging, everything plays an important role in the success of your product. And for many companies, inefficient packaging can result in the wastage of thousands of dollars. By reworking the sourcing of material used, shape, and size of the packaging, you can have a palpable effect on your profits and reputation.
But to streamline your current packaging technique, you first need to understand the basics of packaging and then deal with the top 4 packaging costs. Fortunately, this is exactly what we are going to discuss in this blog post.
What is packaging?
In shipping or logistics, the packaging is materials is dunnage or materials placed around a good or product to keep it safe while being moved from one place to another. For example, the cardboard box used in the case of watches or the packaging peanuts used to ship digital cameras.
Even if you are dealing with only domestic shipping, it has to be on the road in the air for a long time and without proper packaging, it won’t reach its destination safely. Nowadays, many companies prefer to work with companies offering packaging solutions since they even offer the option of green packaging.
The pricing structure of packaging
The total cost of packaging is affected by the following factors-
- Urgency- How quickly it needs to be delivered?
- Size- How big the package is?
- Weight- How much does the package weigh?
- Distance- How much the package would have to travel?
- Handling- Is it a delicate or dangerous item?
- Shape- Does the shape of the package has any effect on the way it would be shipped?
The four different types of packaging costs –
The type of packaging you choose has the biggest impact on the overall cost of your packaging. What you pack your goods in: void fillers, boxes, bubble wraps, printed covers, and more. You must choose the right type of packaging according to your need and budget and you should choose packaging solutions accordingly.
Inserts are an important part of the packaging and it is used in almost every kind of product packaging. They refer to anything else that you put inside the package other than the product. Booklets, brochures, business cards- all these are considered inserts and even they have an effect on the final price of packaging.
Packing and storage
The space occupied by every box you are shipping should also be considered while calculating the final packaging cost. If it would be difficult to fit or store the packages wrapped in custom paper tape, then the overall packaging cost might increase.
The source of your packaging should never be overlooked. In some places, it proves to be cheaper to buy packaging materials in comparison to other places. So, take the sourcing of packaging materials into account for getting a clearer picture of the final packaging cost.
Examples of companies who have made their packaging cost-effective
It was the year 2017 when Dell finally decided to make some changes to its packaging and the main objective of this change was to reduce the size of packaging. You will be surprised to know that just by making small changes to the design of packaging, Dell saved more than 49,000 pounds in packaging on a single laptop. Furthermore, it allowed Dell to fit 13% more laptops per pallet during shipping.
This shows that when it comes to the packaging size, every millimeters count, and by keeping it small, you can save thousands of dollars.
Allbirds also reworked its packaging design and it came up with a completely new design that allowed them to pack and ship shoes without any extra layers. This simple change in the packaging design saved more than 40% of packaging material for Allbirds and it also led to a reduction in the packaging size and shipping cost.
So when it comes to the boxes you are shipping your product into, you should always think out-of-the-box and you should always try to go green. Even small changes like switching to eco-friendly box packing tape can make a big difference.
If a company wishes to succeed, they should never overlook packaging as it is a big part of your expenses and by making precise changes can save you thousands of dollars while allowing you to ship more items.