Importance of Packaging in the E-commerce Industry:

Importance of Packaging in the E-commerce Industry
More than a box

In regards to online shopping, the packaging role is not just limited to a storage cardboard box

E-commerce shopping has become a new norm and it is hugely likely that you must have come in contact with some form of e-commerce package in the last year. It is also possible that you have received an order from an e-commerce store in the last week. And you are not alone.

After the coronavirus pandemic, the e-commerce industry has seen a huge surge from the previous year.  In the US, the largest e-commerce market, more than two-thirds of the customers prefer to buy online, with 80% having made a purchase online in the last 30 days.

The importance of your e-commerce packaging can be easily overlooked –until it starts leading to transit damage and unhappy customers.

E-commerce selling gives an awesome opportunity for people who are starting with small businesses and hoping to sell across the country. Picking an item and promoting it over these platforms is one part of the cycle, the significant trial of your image is the point at which the product reaches the customers. Thus, packaging your product in the right way and shipping it to your customers are two exceptionally basic steps of the chain that can make your brand image. This article will take you through packaging.

Your product must not be messed with when it reaches the customer. Truly! Adjusted product is the biggest disappointment for anybody as they bring with them a lot of hard work. A customer who receives an adjusted product does not just feel frustrated with the company he likewise feels helpless as he needs to experience the whole return process and that occupies a lot of time and energy. Along these lines, your packaging game should consistently be on point. Let’s begin with understanding the importance of packaging for any e-commerce business. In this article, we will go through all aspects of e-commerce packaging.

  1. Crucial Role of Packaging
  2. 7 important packaging facts
  3. First impression count
  4. Packaging is almost equal to branding
  5. Increase in customer retention
  6. Nearly all orders are sent in a cardboard
  7. 30% extra cost if shipping is free
  8. Slow shipping discourage customers
  9. Custom packaging drives loyalty
  10. Considerations before packing your product

We will discuss each of these in more detail.

1. Crucial Role of Packaging:

Everyone jokes about the stories that we heard when Amazon or any other e-commerce retailer sent a tiny product in an oversized carton. Also, many people complain about their experience of package arriving look battered and bruised or even worse, the product becomes damaged.

Although these examples are amusing as well annoying (if you have faced these) as in more than 90% of cases the products get delivered successfully with little fuss. As per an overview, more than half of the customers have admitted that packaging damage would stop them from purchasing again from the same retailer. A poor experience can lead the customer to surrender the brand or have a negative opinion of it.

E-commerce packaging can have a huge impact on your business’s success. It can lead to minimizing the returns as well as the cost of shipping. It can help to foster customer loyalty. It can get your branding in front of more people.

2. 7 Facts of Packaging in the E-commerce Industry:

By seeing these facts you will be able to easily understand the role of packaging in the e-commerce industry gleaned from numerous studies and research conducted over the last few years.

  • Consumers generally form an image of a brand and many other perceptions within 7 seconds. Then, it becomes very hard to change
  • Nearly 10% of the customers consider product packaging almost as important as the brand itself.
  • Many online sellers who pay attention to the packaging of their goods get a 30% increase in the customer interest
  • Nearly 90% of all products in the USA are sent in cardboard packaging
  • A slow shipping time which can also arise because of packaging processes can result in declining 40% of the customers to make a purchase
  • If you can absorb shipping cost and packaging to offer free delivery, it can result in customer average order value being 30% higher
  • More than half of the online customers that receive their order in custom packaging say they are more likely to return to that same company for future purchases

3. First Impression Matters:

As we mentioned above, customers mostly make an impression of the company within the first 7 seconds. It is mandatory that your packaging be chosen to lasting first impression with the customer. On the off chance that your packaging meets the eye and stays with the customer, it can pull in the eye of numerous others too. This can make the customer give you an edge over your competitors.

If a damaged, and loosen box shows up, then it will create a terrible first impression. It should be avoidable in all measures; also it is possible to focus on much more than just ensuring the parcel delivering to the customer’s doorstep in one piece.

Clever branding, personalization, and more will make your patrons feel valued and create some excitement. In fact, this is amongst the major reasons why there are so many videos on YouTube of unboxing. Just think how you will feel receiving a product in a shabby damaged box while spending hundreds of dollars on the product. Make sure that doesn’t happen with your customers.

4. Packaging is almost equal to branding:

brand

Many people think the packaging itself is as important as the brand that they purchase from. Although, you can argue that is a bit ingenious.

The packaging of your products should be an extension of your e-commerce brand. It must play a vital role in conveying about your business and products, and how they can change the life of your customers.

Let’s take the example of Apple. All of their products from iPhone to Macbook, are the epitome of luxury, high-end products. And if you have purchased any of them, you must have felt that their packaging is of equal quality, sturdy and pleasing at the same time.

5. Increase in Customer Retention:

Customer Retension

As we mentioned above, online e-commerce stores that consider their packaging observe an increase in customer interest and turn customer retention rate. There are many reasons for this.

Probably, they have built a level of trust among the customers by not delivering faulty or damaged products. Or the brand values which attracted the customer were emphasized in the packaging as well. It increases the level of excitement while receiving the order, aiding loyalty and the repeat business is on the game.

Even a successfully packaging and particularly which has a “wow” factor can benefit your business by the most effective and oldest form of marketing i.e. “word of mouth” publicity.

When a customer receives a striking package, they are more likely to share it with their friends or family or also on the social media channels. YouTube unboxing videos are the best example.

6. Cardboard Shipping:

Cardboard Shipping

Cardboard boxes are the most used form of packaging and also the most boring packaging. Even the customers use cardboard box packaging on day to day basis. As a brand, if you are delivering your high-end products in this, then customers are not going to attract to your brand.

It shows challenge as well as opportunity.

If your competitors are using these unattractive, boring, unbranded boxes for delivering products then you can immediately make a difference from them and use this to stand alone in the market. This will allow you to start developing your brand and add some real value to your products.

7. Order Values:

Price

In shipping, we most focus on the costing of couriers or shipping partners but the packaging is also a major factor of the money. Even if you are paying 20, 30, or even 50 pence per box, throughout a thousand orders can add a significant cost.

Furthermore, the size of your box can also make a huge difference in your shipping costs particularly in terms of size. It is therefore important that you have the best possible sized boxes for the delivery of your product so that you are not paying for fill-ups for air.

8. Slow Shipping:

After the costs, improper packaging also affects the delivery time. Many people forget that picking and packing an item also takes a considerable amount of time. Whilst you should have a robust plan and processes in place for the picking of e-commerce orders, the actual packing part can often be forgotten.

Boxes that are difficult to assemble or sean increases the packaging time to the fulfillment process. As can the retrieval of boxes for packaging, if you have a particularly large and complicated inventory. If you know you can get an order picked and packed as quickly and efficiently as possible then it gives you a chance of delivering on the same day or the next day.

9. Customer Loyalty:

Customer Loyalty Trust

The customers who receive custom packaging for the items they have ordered say that they will order again from the same company. It is a very strong statement for e-commerce companies.

Custom packaging has other benefits as well, it reduces the shipping costs (as it can reduce the volume of packaging) will protect the contents better through eliminating movement during transit, will be better for the environment through using less material, and will also eliminate secondary packaging (and the cost) such foam pellets or polystyrene.

These are the important considerations that you must look at while packaging of the products:

· Weight:

You must check the weight of the package as the weight of the product will describe the sort of packaging required

· Size and Shape:

The length, breadth, and height of the product should be estimated appropriately before packaging. This will determine the size of the packaging material.

· Product Type:

The kind of product determines the type of packaging system that should be adjusted. Also, special requirements can be defined if any.

· Value of shipment:

On the off chance, that the shipment is of high value, at that point an additional layer of assurance should be possible for the product to ensure complete safety.

Wrapping Up:

In this article, we have understood the importance of packaging in the e-commerce industry. At Ceymox Technologies, the best e-commerce development company in India, we are having expertise in developing e-commerce stores from scratch with custom features and functionalities. Let us know your requirements.

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