The Future of E-commerce Packaging

What Is E-commerce Packaging?

E-commerce packaging is the packaging used to deliver products to consumers after they have been purchased in an online store.

This packaging consists of an outer box or mailer, infill materials and any additional inserts that companies may include.

While the original idea behind packaging was to ensure the product's safety during shipping and handling, focusing on functionality is not the way forward in the current and future e-commerce market.

When it comes to e-commerce, it is essential to market your brand through your packaging.

When done properly, it can greatly enhance your consumers' unboxing experience and create something memorable to share with others!

But what exactly is the unboxing experience, and why is it so important for e-commerce businesses?

E-Commerce And Unboxing Experience Packaging

The process of unpacking a regular box is not exciting in itself; there is nothing remarkable about opening an unmarked box without any creativity or surprises.

However, in today's e-commerce market, many companies are starting to introduce innovative methods to make the unboxing process more interesting.

While the primary function of packaging is to protect goods, this does not mean that it cannot also be used to enhance the customer experience.

As mentioned above, packaging is equally as important as the product in e-commerce, and here's why!

Safety And Brand Reputation

Firstly, e-commerce packaging is essential for brand reputation and product safety.

Customers are easily deterred by damaged packages, so it is essential that your e-commerce packaging is robust enough to withstand the shipping process and reach your customers' doors without being damaged.

Damaged packaging will impact your brand image, and we cannot stress this enough.

Promotion Of The Product, Special Packaging And Attracting Customers

An original package that effectively conveys a brand's image and personality will add value to your product, increasing the likelihood that potential customers will buy it over those of other companies.

Furthermore, the added value and excitement of opening a personalised e-commerce package will encourage customers to share this exceptional experience with their friends and family on social media, thereby increasing your brand's marketing reach.

Even online influencers can create social media content about your products by posting unboxing videos or photos, attracting more customers to your brand!

If you're still unsure about the importance of the unboxing experience in e-commerce, the statistics below should convince you:

1.Three-quarters of American consumers say that packaging design affects their purchasing decisions.

2.61% of consumers are likely to repurchase a luxury product if it is in luxury packaging.

3.Furthermore, 35% of consumers have watched unboxing videos, with 55% of this group being persuaded to purchase the product after viewing them.

4.40 percent of consumers will post a unique or branded package on social media.

5.Lastly, 50 percent of consumers would recommend your product if it came in gift-like or branded packaging.

The numbers do not lie: people like unusual packaging, and the e-commerce market is moving in this direction. Simple boxes no longer suffice.

Customers no longer just seek a good product, but also a company that demonstrates its uniqueness and values through actions as well as mission statements.

Order fulfilment and shipping are the most immediate relationship and point of contact that online retail companies have with their consumers in the e-commerce market. It is therefore only natural that their e-commerce packaging should reflect their best side.

There are many factors that companies must take into consideration when designing e-commerce packaging, which brings us to our second subject:

E-commerce Packaging As It Stands

As the e-commerce goods market evolves faster than ever before, so do packaging methods and customer values.

E-commerce websites have become a popular option for buying goods due to the convenience of direct home delivery and easy product searches.

However, alongside the rapid growth of the e-commerce sector comes the waste generated and the logistical demands of delivering millions of packages to customers every day.

Common Packaging Materials In E-commerce

Currently, e-commerce businesses have a few options in use.

Padded mailers and corrugated shipping boxes have become commonplace in the e-commerce market.

The most popular type of e-commerce packaging among online retailers is the corrugated box, as it is durable, does not add weight to packages and can be fully customised to provide customers with a better unboxing experience.

Other materials such as air pillows, tissue paper, packing peanuts and bubble wrap are also commonly used to fill empty spaces and prevent products from moving during transportation.

Padded mailers are another popular type of e-commerce packaging.

They are suitable for small, flat or delicate items such as jewellery, books, handicrafts or electronics.

Similar to corrugated boxes, filler materials such as paper and bubble wrap are usually added for extra protection.

However, while both alternatives are excellent for securing products and tailoring the unboxing experience for customers, the same cannot be said for sustainability and eco-friendliness.

Fortunately, we will discuss numerous new and innovative sustainable packaging solutions later in this paper, but first, we must address the challenges.

The Problems of Internet Shopping and Packaging

Shipping and Logistics

As we will see, e-commerce packaging has a negative environmental impact. It is also important to mention the growing challenges of shipping and logistics, since this part of the industry is indispensable to e-commerce.

As the e-commerce market expands and expectations increase, e-commerce businesses must consider the following:

Tracking: E-commerce firms should ensure their clients can track their packages with regular updates to make the process smooth.

Shipping costs: Shipping can be very expensive when operating an e-commerce company.

Product returns: 56 per cent of online customers base their purchase decisions on return policies.

Scalable logistics operations: businesses should plan dynamic solutions to scale spikes and drops in sales to avoid overloading resources.

International shipping: As the world has become more accessible, e-commerce businesses should be aware of additional charges such as customs duties and taxes to avoid surprising international customers with extra charges.

Warehousing: It is important to know where to store your merchandise, as this can save e-commerce businesses a lot of money.

Shipping problems such as misplaced shipping addresses, missing tracking numbers and inaccurate package weight can be a major nightmare for e-commerce companies and customers alike.

Security of delivery: sadly, package theft is a frequent occurrence. This problem can be mitigated with notification alerts, specific delivery points and numerous other options.

Environmental concerns: Lastly, companies must consider consolidated packaging and weight to reduce the need for further trips.

Shipping and logistics will always present challenges, whether you are a new or an established e-commerce business.

However, these challenges can be addressed through proper planning and implementation, allowing you to focus on the next major challenge: the environmental impact.

Environmental Impact of eCommerce Packaging

Yes, recycling standard e-commerce packaging is possible, but whether it is being recycled is a different matter.

Statistics show that global consumption of paper and paperboard totaled 408 million tons in 2021, and is projected to reach 476 million tons by 2032.

Along with this massive amount of consumption of paper resources, the e-commerce industry also accounted for approximately 2.1 billion pounds of plastic packaging in 2019, with a projected growth of 4.5 billion pounds by 2025.

Packaging waste is often improperly disposed of and in landfills or as litter on our streets or oceans.

The amount of waste the e-commerce industry produces is staggeringly high, but many companies still hesitate to switch to more sustainable methods.

This hesitation stems from various factors, such as the relative innovations in packaging, reluctance to accept the risks of being an early adopter, and the higher setup cost and resources to adopt these innovations.

And though many package carriers and manufacturers are beginning to provide solutions and eco-friendly alternatives to standard packaging, consumers ultimately have the most influential voice to push for sustainability.

At the forefront of this change is the need for consumers to push for sustainable e-commerce packaging, and this is what is starting to happen!

The Future Of E-commerce Packaging

The future of e-commerce packaging is moving towards sustainability, personalisation and technology.

An increasing number of consumers are seeking out sustainable, personalised and eco-friendly businesses, and this is having an impact on the future of the e-commerce environment.

Environmental Friendliness and Sustainability

As awareness of e-commerce waste, particularly plastic, increases, consumers are becoming more vocal about the materials and sources used in packaging production.

One way companies can start to address this issue is by altering their source of raw materials to produce their packaging, which is known as sustainable sourcing and manufacturing.

E-commerce businesses can take the first steps towards environmentally friendly initiatives by choosing suppliers that ethically source renewable resources and manufacturers that aim to minimise waste, energy use and pollution.

Biodegradable and compostable materials are gaining popularity in e-commerce packaging for good reason.

Unlike plastic, biodegradable packaging materials are designed to break down without leaving any harmful compounds, and this process can take anywhere from several days to a year. Plastic, on the other hand, takes 450 years to degrade.

Similar to biodegradable packaging, compostable packaging can disintegrate and leave no toxic residues, offering beneficial nutrients to the soil — but only if the conditions are appropriate.

No matter how much businesses do to enhance sustainability, consumer demand for eco-friendliness is growing and businesses must respond to it.

Customisation And Personalisation

We have discussed at length how the unboxing experience is a crucial factor in customer satisfaction, and this will continue to be the case in the future of the e-commerce market.

The unboxing experience is more important than ever!

Consumer expectations of e-commerce businesses are at an unprecedented level, with consumers wanting brands to acknowledge them.

Technology And Innovation

Technological advances have been occurring at a very high rate, and with these advances come new trends in every market, including e-commerce.

Internet of Things technology and smart packaging are two such trends.

One such trend is innovative packaging, which has made the e-commerce industry more transparent and interactive.

Smart packaging uses technology to improve customer experience and simplify issues that e-commerce businesses may face.

Similarly, Internet of Things (IoT) technology seeks to achieve the same goal.

IoT defines devices with software, sensors and other technology that can communicate with other devices via the internet.

AR/VR

We have also briefly touched on augmented reality (AR) and virtual reality (VR).

Although AR and VR are not new technologies, they are developing and changing at an astonishing rate.

Today, it is difficult to find an e-commerce business that does not use AR or VR apps to improve the online shopping experience of customers!

Having said that, let us now move on to future trends in the e-commerce industry.

Technology and innovation are the future of e-commerce

The opportunities offered by the e-commerce industry are limitless thanks to new technologies and innovations.

The world is evolving, and e-commerce is at the forefront of this change. Therefore, businesses must evolve and keep up with the industry.

With an increasing number of smart packaging, Internet of Things (IoT) and sustainable solutions on the market, consumers will continue to embrace them, and companies should do the same.

Moreover, evolution is the process of adapting and changing to suit the environment. So when the environment demands sustainable packaging, customised customer experiences and unified technology, so be it!