Do you know how much your packaging is really costing you? The basic unit price is actually only the tip of the iceberg. In fact, only 5% of your total packaging costs are made up of packaging material. The rest are hidden beneath the surface.

Here are a few things to consider when thinking about the real costs of your packaging.

1. Customer dissatisfaction
In the age of online shopping, packaging has a big role to play in delivering a positive customer experience. Yet, as many as 38% of customers are dissatisfied with the packaging they receive, according to the Interactive Media in Retail Group (IMRG).

Bad packaging can undermine the value of your product and unhinge your brand credibility. You can prevent this by making sure that your package delivers the WOW your products deserve.

This will help to reassure your customers that they made the right purchasing decision and encourages them to choose your brand again.

2. Damages and returns
Improper packaging can result in product damage during transit and storage.

Packaging that is too big or too small for your items will not provide adequate protection and may generate additional costs when items have to be replaced, alongside shipping costs for customer returns.

To prevent this, make sure that your packaging is right for your products. Use only as much packaging material as is necessary. This helps you to save costs and speed up your packing operation.

3. Packaging storage space
Is your packaging taking too much space in your warehouse? What exactly is it costing you?

Consider storing your packaging with a service provider who will hold stock and drip feed into your business. This will reduce the amount of packaging you need to store, reducing costs and freeing up valuable space in your warehouse.

4. Packing labour
How long does it take you to collate, assemble and pack your products? Have you ever considered switching to a semi or fully automated packing process?

You can increase the speed of packing by introducing simple tools such as tape machines or automatic void fill dispensers into your manual packing operation. Self-erecting crash-lock boxes will also help you to speed up your packaging by eliminating the time consuming effort of taping the bottom together.

5. Forward logistics
You can save on your storage and shipping costs by reducing the size and weight of your parcels and making the most of your pallet space.

Ensure that smaller parcels fit through the customer’s letterbox first time. This will help you to reduce carrier tariffs while pleasing your customers.

At Macfarlane Packaging, we can help you to minimise your packaging costs while optimising your customer experience. Contact us today for a free packaging review.