How to Reduce Packaging Cost

Operating an online store or a small outlet near the corner of a street, packaging is the core of business identity, protecting products, and delivering them safely to customers. High-quality packaging isn’t about protecting products; it also includes customizations that include a business logo, unique patterns, catchy slogans, and a personalized message. 

All of these factors play a key role in boosting business and making loyal customers. However, there is a little catch in it. The packaging, despite its many benefits, contributes to a major surge in cost. 

The factors influencing the cost of packaging are enormous. Apart from discussing how to reduce packaging cost, we will also discuss:

1. What is product packaging in retail and e-commerce?
2. Different types of packaging 
3. Importance of packaging in marketing 
4. Factors affecting the cost of packaging 
5. Tips on how to reduce packaging costs
6. Conclusion 

Let’s get started.

What is Product Packaging in Retail and E-commerce?

Product packaging in retail and e-commerce refers to the process and materials used to package products to display on shelves, attract customers, and protect the product. Customizing product packaging is the key to differentiating your product from competitors. 

Whether you are displaying your products on retail shelves, intending to attract customers, or marketing your brand without exhausting funds, custom packaging boxes are highly effective for your brand’s promotion and marketing. 

Packaging isn’t just limited to a box that protects the product, but also includes everything from sustainability to unboxing experience, and impression of your brand identity to how perfectly it aligns with the target audience. 

Also Read:What is eCommerce Packaging?

Different Types of Packaging

Packaging is categorized into various types depending on functionality, materials, and purpose. Some of the common types of packaging include:

Primary Packaging

Primary packaging refers to the packaging that is directly used for storing or protecting the product. For instance, a jar is used to store coffee, a tube is used to store skin serum, and a mylar bag is used to store dry items. 

Secondary Packaging

Secondary packaging refers to the packaging boxes that complement primary packaging to keep the products protected and safe. For instance, coffee jars containing different flavors can be further packaged in a box with sections to contain and store multiple coffees in one place. It not only enhances its functionality but also makes the product safe and protected from external damage during shipping and handling. 

Tertiary Packaging 

Tertiary packaging refers to the outermost layer of packaging used to protect and facilitate the handling, storage, and transportation of products in bulk. It is typically used for shipping large quantities of products, such as pallets, crates, or large boxes that contain multiple smaller units of goods. The primary purpose of tertiary packaging is to ensure that items remain intact during transit and to make it easier to transport, stack, and store the goods.

Protective Packaging:

Protective packaging is the additional material used to protect and safeguard the products from damage during transit and storage. Some of the materials that are used to protect include bubble wrap, air pillows, and foam peanuts. The protective packaging is best for protecting fragile items by providing extra cushioning. 

Flexible Packaging

Flexible packaging is a lightweight packaging option used for personal care products, snacks, and various types of food. Some of the examples include pouches, mylar bags, and wraps. 

Also Read:Benefits of E-commerce Packaging in 2025

Five (5) Importance of Packaging in Marketing 

Packaging isn’t about protecting the product from damage, but also about making things It is more about creating an impact, boosting visibility, and being the center of the spotlight without doing much. 

Custom packaging for small businesses and big enterprises plays a crucial role in creating a first impression that inspires customers at first sight. The importance of packaging in marketing is phenomenal and cannot be elaborated in a few words. Let’s try. 

Protection and Safety of Product 

Packaging primary purpose is to protect and secure the product. Especially when it comes to fragile items such as glass and electronics, the importance of packaging in retail and online holds great importance. However, packaging isn’t limited to only fragile items as they are also required to prevent the product from dust, moisture, heat, and light to protect its integrity. 

That is why packaging material should be strong, sturdy, and eco-friendly to protect the product and save the environment from packaging waste. 

Powerful and Impactful Shelf Display 

No matter what products you try to sell, the competition is sky-high. Even if the competition is low, the chances of you being successful depend on how well you present. The better the presentation, the more likely you are to stay relevant and a top priority for customers. 

Gaining attention in retail stores where shelves are overcrowded with similar products from different brands. The ones that are picked and added to the carts are those with attractive packaging. In some cases, the preference might be due to lower cost, but in the majority of cases, it’s the packaging that plays an important role in helping consumers to make buying decisions. 

Giving Necessary Information 

Packaging in marketing is a billboard for your product where you display and present everything your customers are looking forward to. For instance, if you are displaying cookies on a retail shelf, customers would like to know the quantity of cookies being offered, the nutritional value, and the price. Moreover, it can also include warnings, instructions, and ingredients to make it easy for customers to decide whether the product is suitable or not. 

Giving all the necessary information to the customers is important not only to help them decide better, but also to be transparent with them. For instance, people who are allergic to eggs must be warned without hiding the fact. However, if the brand tries to hide the information, it might tarnish its image in the eyes of the customers.

Providing a Better Experience 

Packaging without customization is a nail in the marketing coffin. If you are selling your products in a plain and bland box, get ready to wind up your business in a matter of months, if not days. The best way to market and promote your brand is to invest in custom packaging boxes. Not only is it important to create awareness among customers, but also to provide them memorable experience while unboxing. 

Due to the overwhelming emergence of brands and ecommerce stores, customers are usually looking for something unique, creative, and memorable. Customization of packaging boxes leads to providing a better experience and creating an impact on the customers. 

The best thing about providing a better unboxing experience is that most online influencers turn to YouTube or other social websites to share it with others. This helps you market your brand and reach new people who might be your future customers. 

Marketing and Promotion of Brand 

Advertisement in traditional ways can cost you a fortune. Especially if you are tight on budget, you may end up meeting the cost of advertisement rather than making profits with a huge margin.

However, custom packaging for small businesses adds fuel to the marketing and advertising campaign without investing a fortune. The products with the right packaging displayed on retail shelves are the canvas for brand advertisement. Even if it fails to generate sales, the likelihood of making sales in the future is greater. However, it also depends on how well you customize your boxes with brand name, logo, and slogan printed. 

Also Read: Apple Packaging Strategy: What Packaging Does Apple Use?

Factors Affecting the Cost of Packaging 

The packaging cost can surge sky high if you are considering several factors that contribute to the increase. Some of the common causes of the increase in packaging cost include:

Type of Material

Packaging material plays a major role in increasing the cost of packaging. For instance, if you are using rigid boxes to package your goods instead of using corrugated or kraft, you may end up paying more. Rigid boxes are undoubtedly the best packaging material you can opt for, but they are more suitable for packaging premium products that charge a high price. 

Design Complexity

Packaging without customization and design isn’t going to make an impact. However, making the design overly complex and difficult would lead to high costs from packaging manufacturers due to specialized manufacturing processes and tools. 

Size and Weight 

Packaging cost also depends on the box`s size and weight. For instance, if you want to package heavier material such as a TV, LED, or furniture, the cost of packaging would be higher. However, if you are unnecessarily wasting resources on producing boxes that are oversized and aren’t required to package goods, you may end up surging the cost of packaging. Make sure to take advice from professional box manufacturers and suppliers. 

Small Order Production Leads to Higher Cost 

Operating a small store with a high volume of sales requires an unlimited supply of packaging boxes. Conversely, if the orders are not in high volume, you may end up ordering a small quantity of packaging boxes. It leads to an increase in per-unit cost, which ultimately surges the cost of packaging. Make sure to order in bulk to get wholesale prices on packaging boxes and reduce shipping costs. 

Printing and Labeling 

Customizing packaging boxes is a better way to create brand identity, increase sales, and drive revenue. However, printing and labeling could result in extra cost, which may end up surging the cost. Depending on the type of product and target audience, you can surely make amendments in printing and labeling to reduce the cost of packaging.

Shipping and Transportation

The packaging cost varies greatly with the cost of shipping and transportation. For instance, if you are not adjusting the size, weight, and dimensions of packaging boxes according to requirements, it might increase the shipping and transportation costs. The shipping cost varies greatly due to the weight and size of the boxes. 

Meeting Devised Standards 

Some products require special care and attention when it comes to packaging. Normally, these products are related to human health. For instance, pharmaceuticals, food, and a specific type of supplements need to meet regulatory standards, which results in extra packaging costs. 

Miscellaneous Cost

The cost of packaging also depends on fluctuations in prices of transportation, raw materials, and labor. For instance, after the COVID-19 pandemic, shipping and labor costs drastically increased. 

Cost-effective Packaging Ideas: How to Reduce Packaging Cost? 

High-quality packaging is the key to a brand’s success, especially when the packaging design is phenomenal and eye-catching, and the customer experience is top-notch. If you are looking for cost-saving packaging ideas, here’s everything you need to know. 

Improve Packaging Material Storage 

For small businesses, the cost of packaging might not be as much as when the business grows. The type of packaging material is also different for various products. For instance, rigid boxes are suitable for heavier and premium objects that are fragile objects. Paper and cardboard boxes are widely used for storing and shipping items without any fear of damage during transit.

You need to consider a strategy to store packaging boxes in an optimal way to improve efficiency and cost. Make sure to categorize similar materials grouped together. Moreover, you can also group frequently and not frequently used packaging materials in one area so that it becomes easier to manage inventory. 

Use the Automated Packaging System 

One of the reasons you might face a high cost of packaging is the labor and time it takes to manage the process. For instance, the time it takes for a human to make cardboard boxes, packaging fillers, and add-ons might be time-consuming as compared to automated technology that would take minutes if not seconds. 

Nowadays, packaging companies are shifting from labor to automated technologies to save on labor costs and the time it takes. It helps boost overall productivity and packaging speed, which makes it easier to eliminate redundancies related to time and manual work. 

Using Right-Sized Boxes 

Some brands are careless about customization, especially when it comes to size and dimension. As long as the product can be put in the packaging box, everything is good to go. However, one thing that they do not realize is its dimensional weight and space that adds to the weight of the packaging box. It all ends up with a surge in shipping costs, which otherwise could have been saved if customized properly. 

Minimize Packaging Returns 

Damaged products can cause a serious dent in the company’s cost, which is normally due to substandard packaging material and a lack of customization. Make sure to outsource your packaging boxes to a custom boxes manufacturer for better packaging quality and customization that can easily fit the product correctly, minimize returns, and please customers. 

Order in Bulk 

One of the cost-effective ideas to reduce packaging costs is to order them in bulk. Instead of ordering a few packaging boxes, make sure to order in large quantities. The greater the quantity the more the savings and the lower the per unit cost. Get in touch with a wholesale packaging box company to get a price quote for your order. 

Remove Unnecessary Parts

Product packaging is not just a box, but also other components that adorn and protect the products from damage. For instance, if you are using unnecessary fillers in your packaging box, ask yourself whether it is needed or can be eliminated to protect the product during transit. 

Moreover, over beautification and customization may not be appropriate in many cases. Remove all the finishing, add-ons, and other elements that are just adding to the packaging cost. 

Conclusion

Custom packaging boxes for small businesses and large enterprises are highly going to impact sales and build brand identity. If you are looking for top-quality custom packaging boxes at wholesale prices, look no further than IMH Packaging. We, as a leading manufacturer of packaging boxes offer a wide range of benefits and perks to facilitate valued clients. Some of them include: 

• Free Shipping on all orders above $100
• Wholesale prices on bulk packaging boxes 
• Free design support to elevate packaging looks
• Eco-friendly packaging material to minimize waste and overall cost
• Free lamination
• 100% secure payment and no hidden charges 
• Unlimited customizations, finishing options, and add-ons 

If you want to reduce packaging cost, elevate your brand, attract more customers, and drive more revenue, give us a call at +1 312 517 0995.