Costs and Benefits of Custom Packaging for E-commerce [Infographic]

Matt Zajechowski 3m 766 #packaging

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Custom Packaging for E-Commerce

E-commerce companies have no shortage of areas in which they can invest their money, from digital marketing to product development and more. Due to these costs, many e-commerce companies might choose to skimp on custom packaging, opting instead for plain plastic bags or shrink wrapped sleeves to hold their wares for the low price of less than fifteen cents per bag or sleeve (rigid boxes, in comparison, can cost up to 85 cents each).

However, with the advent of dimensional weight pricing and the growing trend of “unboxing” videos, custom packaging can give e-commerce companies a way to make a strong first impression on their customers while also improving the quality of their product. Here’s how.

To begin with, dimensional weight pricing regulations will now charge retailers for shipping volume rather than just weight, steering retailers away from excessive packaging and void fill in favor of custom box sizes and protective packaging. With these custom box sizes and protective packaging, shipped products are less likely to be damaged in transit, which leads to greater customer satisfaction.

Also, e-commerce customers are placing greater emphasis on receiving and opening the package than they have in the past; some shoppers even record “unboxing” videos, in which they record themselves unboxing an item they have purchased or received, giving even more attention to the packaging of a product. Since 2010, the number of YouTube videos with “unboxing” in their title has grown by 871%, and in 2013 alone, 6.5 years’ worth of unboxing footage was uploaded to YouTube.

You may think that the importance of packaging pales in comparison to the quality of the product you’re selling, but in fact, custom packaging is often responsible for making a positive first impression on your customers. Instead of trying to save money by packaging your products in the cheapest material possible, consider spending a little more money for custom, protective packaging; your customers will notice and appreciate the extra effort.

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Is Custom Packaging Worthwhile For E-commerce Retailers?

Weighing The Cost & Benefits

Dimensional Weight Pricing: A Game Changer For Retailers

As of January 15, major carriers implemented ‘dimensional weight’ pricing on all shipments. Retailers are now charged for shipping volume, rather than just weight.

Carriers implemented this change because excessive packaging had been affecting vehicle volumes by more than 300%. Retailers must now be acutely aware of excessive packaging and void fill.

To most retailers, custom packaging just means branded packaging.

But with dimensional weight pricing, optimal sizing and protective packaging can mean major savings on shipping costs.

What does custom packaging actually cost?

$0.03 – $0.10 Plastic bag (poly bag, sticker label, sticky seal, full print)

$0.05 – $0.15 Shrink wrap sleeve (printed, clear)

$0.25 – $0.35 Paper bag (sticker label, printed label, foil stamp, ribbon handle)

$0.30 – $0.60 Folding carton (paperboard box)

$0.60 – $0.85 Fancy folding carton (window, foil stamp, print on the inside, many inks, foil board)

$0.75 – $0.95 Plastic box (printed, glued)

$0.75 – $3.00 Rigid box (basic print, simple liner, basic styles, machine assembled)

$1.00 – $5.00 Fancy rigid box (premium papers, foil stamp, magnetic closure, foam insert, luxury paper liner, ribbon, hand and machine assembled)

Costs estimated based on a quantity of 10,000. Will vary based on locations and products shipped.

First Impressions Matter

Custom packaging is the first tactile experience for an e-commerce customer.

First impressions form within 100 milliseconds, and often remain intact even when contradicted by factual information.

“Unboxing” videos, where users record themselves “unboxing” an item they have purchased or received, take these first impressions to a new level.

Since 2010, the number of YouTube videos with “unboxing” in their title has grown by 871%.

In 2013 alone, 6.5 years worth of unboxing footage was uploaded to YouTube.

But Custom Packaging Means More Than Just Branding

It also means custom box sizes and protective packaging

80% of customers say protection is the most important aspect of packaging.

11% of global customers are completely satisfied with packaging today.

Custom box sizes and packing leads to increased safety for shipped products, and few worries about something being damaged in transit.

Without appropriate protective packaging, 1 in 10 packages will arrive damaged.

Three out of five consumers say their relationship with a retailer would be negatively impacted if they received a broken or damaged online order.

Two in five say they would consider purchasing from a competitor before purchasing from the retailer again.

One in five say they would never use that retailer again.

Custom packaging is more than just branded packaging: by using optimal sizing and protective packaging, you can save costs on shipping and impress your customers.

shorr | packaging corp.

Source: http://www.shorr.com/packaging-news/2015-03/costs-and-benefits-custom-packaging-ecommerce

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