Lower Packaging Costs & Improve Performance
In today's hyper-competitive e-commerce landscape, businesses are always looking for ways to save costs and increase efficiency without sacrificing quality. One area where e-commerce businesses can achieve these goals is through value engineering in packaging. By optimizing the design and materials used in packaging, businesses can lower costs and improve performance.
Packaging is an essential component of e-commerce. It not only protects products during shipping but also serves as an extension of a business's brand. At the same time, packaging can also be a significant expense for e-commerce SMBs. To save costs while maintaining quality, businesses can adopt value engineering principles to optimize their packaging design and materials. In this article, we'll explore several ways businesses can use value engineering to lower packaging costs and improve performance.
Standardized sizes:
Shipping boxes are one of the most common packaging materials used in e-commerce. They come in a variety of sizes and shapes and are often made from cardboard or corrugated materials. One way to save costs on shipping boxes is to use a standard size that is readily available in the market. This way, businesses can avoid the added expense of custom sizes and the need to order in large quantities. Another option would be to use multi-depth boxes which help minimize the number of packaging SKUs SMBs carry on hand.
Using standard sizes also makes it easier for businesses to predict shipping costs and reduces the need for excess packaging materials. Standard sizes are also widely available and can be purchased in smaller quantities, making it more cost-effective for SMBs.
Lightweight materials:
Another way to save costs on shipping boxes is to use lightweight materials that still offer the necessary strength and protection for the product. For example, using a thinner cardboard sheet for smaller items can lower costs while still providing sufficient protection during shipping. This is particularly beneficial for businesses that ship products in large quantities or have high shipping costs.
Using lightweight materials also reduces the overall weight of the package, which can result in lower shipping costs. It's important to strike a balance between using lightweight materials and ensuring that the product is adequately protected during shipping. If the product is not adequately protected, businesses may face increased returns and unhappy customers.
White boxes & Mailer boxes:
Contrary to the popular opinion, white cardboard boxes can be a cost-effective packaging solution for e-commerce SMBs. They offer a clean and simple look and can be easily customized with printed labels or stickers. To further reduce costs, businesses can purchase white cardboard boxes in standard sizes that are readily available in the market. This eliminates the need for custom sizes and the associated expense of ordering in large quantities. Additionally, businesses can consider ordering in bulk to negotiate lower prices per unit and reduce shipping costs. By using white cardboard boxes and adopting value engineering principles, businesses can create a cost-effective packaging solution that meets their needs and those of their customers.
Mailer boxes, also known as subscription boxes, are another popular type of packaging used in e-commerce. These boxes are designed to hold multiple items and often come with custom printing to create a branded unboxing experience. One way to save costs on mailer boxes is to use white boxes instead of custom-printed mailer boxes.
While custom printed mailer boxes can enhance branding, they can also be expensive. Using white boxes with custom printed labels or stickers can achieve a similar effect at a lower cost. This approach also allows businesses to order in smaller quantities and still achieve a branded look and feel.
Using a standard size for mailer boxes is also beneficial for SMBs. This can reduce the need for custom orders and minimize waste from excess packaging materials. It also simplifies the packaging process and reduces the likelihood of errors.
Recycled materials:
Cardboard sheets are a versatile packaging material that can be used for a variety of applications, such as wrapping products or creating dividers inside boxes. One way to save costs on cardboard sheets is to use recycled materials. Recycled cardboard is often cheaper than new materials and can still provide sufficient protection for products.
Using recycled materials is also more environmentally friendly, which can be a selling point for businesses. Customers are increasingly looking for sustainable and eco-friendly products, and using recycled materials in packaging can help businesses appeal to this growing segment.
Bulk ordering:
Custom printed mailer boxes are a popular choice for businesses looking to create a memorable unboxing experience for their customers. However, they can also be expensive. One way to save costs on custom printed mailer boxes is to order in bulk. By ordering a large quantity, businesses can often negotiate lower prices per unit and save on shipping costs. Ucanpack offers up to 40 % discounts on mailer boxes when buying in bulk!
Another way to save costs on custom-printed mailer boxes is to use a simplified design with fewer colors. This can reduce the printing costs and still provide a branded look and feel. Additionally ordering in bulk also allows businesses to have a consistent supply of packaging materials, reducing the likelihood of running out of stock and delaying shipments. It's important to strike a balance between ordering in bulk and storing excess materials, as this can lead to additional storage costs and waste.
Eco-friendly materials:
In addition to cost savings, value engineering in packaging can also improve performance. Using a more durable material can provide better protection for products during shipping, reducing the likelihood of damage and returns. However, businesses can also consider using eco-friendly materials to reduce their environmental impact.
Eco-friendly materials, such as biodegradable or recycled materials, can be a selling point for businesses. Customers are increasingly looking for sustainable and environmentally-friendly products, and using eco-friendly packaging can help businesses appeal to this growing segment.
For example, businesses can use biodegradable packing peanuts instead of traditional polystyrene packing peanuts. Biodegradable packing peanuts are made from cornstarch and dissolve in water, making them more environmentally friendly than traditional packing peanuts. Another option is to use recycled paper as a filler material instead of bubble wrap or foam, which are not biodegradable and can be harmful to the environment.
Testing and optimization:
Once businesses have optimized their packaging design and materials, it's important to test and optimize the packaging solution. This can involve conducting a series of tests to ensure that the packaging provides adequate protection for the product during shipping.
For example, drop tests can be used to simulate the impact of a package being dropped during shipping. Compression tests can be used to simulate the weight of other packages being stacked on top of the package during shipping. By conducting these tests, businesses can identify any weaknesses in their packaging solution and make necessary adjustments to ensure that the product arrives at its destination safely and without damage.
Conclusion:
Value engineering in packaging is an effective way for ecommerce SMBs to lower costs and improve performance. Using standardized sizes, lightweight materials, and recycled materials are just a few examples of ways to save costs on packaging. Custom printed mailer boxes can enhance branding, but using white boxes with custom printed labels or stickers can achieve a similar effect at a lower cost. Additionally, using eco-friendly materials can reduce the environmental impact of packaging and appeal to customers who are looking for sustainable and environmentally-friendly products.
Here are 10 ways that ecommerce companies can reduce the cost of their packaging:
- Use standardized sizes: Using standardized sizes for shipping boxes and mailer boxes can reduce the need for custom orders and minimize waste from excess packaging materials.
- Lightweight materials: Using lightweight materials for packaging, such as thinner e flute cardboard sheets or biodegradable materials, can lower costs while still providing sufficient protection for the product.
- White boxes: Instead of using custom printed mailer boxes, businesses can opt for white boxes with custom printed labels or stickers to achieve a similar branded look at a lower cost.
- Recycled materials: Using recycled materials for packaging, such as recycled cardboard sheets or recycled paper as filler material, can be cheaper than using new materials and is more environmentally-friendly.
- Bulk ordering: Ordering packaging materials in bulk can often result in lower prices per unit and reduce shipping costs.
- Simplified design: Using a simplified design for custom printed mailer boxes, such as fewer colors, can reduce printing costs while still providing a branded look and feel.
- Right-sized packaging: Using packaging that is the right size for the product can reduce the need for excess packaging materials and lower shipping costs.
- Customized inserts: Using custom inserts, such as dividers or molded pulp inserts, can provide better protection for the product during shipping and reduce the need for excess packaging materials.
- Testing and optimization: Conducting tests on the packaging solution, such as drop tests and compression tests, can identify weaknesses and help optimize the design for cost and performance.
- Automation: Investing in packaging automation, such as automated box making machines, can reduce labor costs and increase efficiency in the packaging process.
By adopting value engineering principles and testing and optimizing their packaging solution, businesses can save costs, improve performance, and create a more sustainable and environmentally-friendly packaging solution.
