The state of shipping and delivery has experienced ongoing fluctuations for years now. From the emergence of ecommerce and lightning-fast Amazon shipping standards to COVID and current tariff uncertainties, brands have faced numerous complexities due to shifting customer expectations, rising costs, and supply chain challenges.
As ecommerce retailers scramble to handle accelerated fulfillment timelines and the demand for free shipping, they look for ways to save on costs through tactics such as optimized last-mile operations or regional fulfillment locations. Another way brands are battling increasing shipping costs? Reduced packaging.
Long gone are the days of brown boxes and white bubble wrap envelopes. Today’s consumers expect a lot: they want branded, sustainable packaging and fast delivery. And, they don’t want to pay extra for it.
The good news is that a focus on packaging is beneficial and can improve fulfillment speed and cost efficiency. It’s an often-overlooked way to achieve rightsized and reduced packaging while meeting the demand for ecommerce packaging trends, like sustainable and low-to-no-cost shipping.
Let’s dive in!
The true cost of poor packaging
Most people have seen it: the large box with a small item, mostly housing air. Or maybe it’s a fragile product in a smaller box that saves space, but doesn’t protect, leading to damage. Perhaps the warehouse team has too many box sizes, leading to indecision, which slows down fulfillment operations. Whatever the scenario, bulky, mismatched, or excessive packaging leads to a host of challenges, including:
- Higher dimensional (DIM) weight charges: DIM weight is calculated using length x width x height and divided by a determined DIM divisor (for example, FedEx uses a standard dimensional factor of 139). If you were to use a 10 x 10 x 10 box for your product, the DIM weight would be 8 lbs. However, if you placed the same product in an 11 x 11 x 11 box, it would be 10 lbs. This means the more streamlined your packaging, the lower the cost. Moreover, brands should compare the DIM weight to the actual weight before determining the most cost-effective way to ship.
- More damaged products and returns: Without the right packing materials, products can be damaged, leading to increased returns. While it’s easy to choose the cheapest materials for protection, sometimes they don’t end up being the most cost-effective. The goal should be to find packaging and materials that not only protect your product consistently but also meet customer expectations and rightsize dimensions.
- Slower packing and shipping times: There are many ways poor packaging hinders packing and shipping times. For instance, non-standard sizes require more decision-making and manual adjustments, slowing down workflows, while “cheaper” materials often take longer to assemble and seal (think flimsy or hard-to-fold cartons). Moreover, inadequate protection means spending more time padding or reboxing damaged items.
Poor packaging design is one source of warehouse inefficiencies and carrier surcharges, but one that’s easily remedied with rightsize and reduced packaging.
What optimized and reduced packaging looks like
| What optimizes packaging | Steps to take |
| Rightsized and reduced packaging tailored to product dimensions | • Audit product sizes and shipping history • Invest in box-sizing tools or software • Develop packaging templates for common SKUs |
| Automated or semi-automated packing lines | • Evaluate volume to justify automation • Integrate packing equipment with your Warehouse Management System (WMS) • Train warehouse staff on new packing machinery and workflows |
| Standardized materials that reduce decision fatigue | • Analyze SKU profiles to reduce the number of box sizes • Create a set of go-to, versatile packaging materials • Implement clear and repeatable packing guidelines for fulfillment teams |
| Eco-friendly or lightweight materials | • Source recyclable, biodegradable, or low-weight packaging that meets durability needs • Test materials for strength, carrier compliance, and product protection • Highlight sustainability practices in customer communication and brand messaging |
Cost and time savings from packaging optimization
The cost and time savings from reduced packaging and optimization can be substantial, especially in the long term. Even small savings add up over time, both in pennies and customer loyalty. Brands that optimize and aim for rightsized or reduced packaging experience:
- Lower DIM weights lead to lower carrier costs
- Bulk purchasing and fewer packaging SKUs lead to reduced materials costs
- Streamlined processes mean faster pack times and result in reduced labor costs
- Better protection and reduced packaging lead to happier customers and mean less damage and fewer returns
- Clear packaging workflows reduce time
The case for rightsized packaging
According to a SupplyChainBrain special report, it’s important that brands “Rethink the Box.” The US suffers from severe packaging inefficiency, leading to serious waste. Moreover, wasting capacity by shipping with extra space equals wasted capital. Voids, fillers, and poorly planned packing systems lead to waste as well.
One example highlighted in the article was a warehouse associate grabbing a box that looked the right size, putting a label on it, and packing it, only to realize it was too small. The employee placed the order in a bigger box with too much space and added filler. It’s a slippery slope; no workflow and packaging standards led to waste, and time was lost due to decision-making.
Some areas are updating standards to promote sustainable and eco-friendly packaging and shipping supplies, from New Jersey’s rightsized box law to the EU’s Packaging and Waste Regulation. This means brands may eventually need to optimize packaging to remain compliant. But the pros are less packaging, fewer trucks, less waste, benefiting ecommerce retailers and the world.
Custom packaging vs. scalable packaging
Not all packaging is created equal, and that’s a good thing. For some brands, packaging is an extension of the product experience; for others, it’s a logistical lever for speed and cost control. The key is knowing when to use custom packaging and when standardized, rightsized, or reduced packaging solutions are the smarter choice; and how a strategic 3PL partner can help brands find the right balance between experience and efficiency at scale.
When to use custom vs. standardized packaging
| Scenario | Best Fit | Why |
| High-value or luxury items | Custom packaging | Elevates unboxing experience and reinforces premium brand identity |
| Subscription box with branded inserts | Custom packaging | Adds personalization and marketing touchpoints for retention |
| Flash sales or short-run seasonal items | Standardized packaging | Quick turnaround and simplified fulfillment during peak volume |
| High-volume ecommerce orders | Standardized/rightsized | Speeds pack time, reduces DIM weight, and lowers material costs |
| Fragile items that vary in size | Rightsized packaging | Prevents damage while minimizing shipping overages |
| Launching into new markets quickly | Standardized packaging | Allows for flexible, scalable fulfillment with minimal packaging SKUs |
Kase X Hiyo: Reducing fulfillment costs by over 30% with optimized packaging
When Hiyo first partnered with Kase, their most popular SKU (the Variety Pack) required 3 to 4 individual picks per order, leading to higher fulfillment costs and time. With the help of the Kase team, the brand redesigned its shipping boxes and streamlined the process to:
- Reduce the dimensional weight of each order
- Reduce the number of picks per pack
Now, Variety Packs arrive at the warehouse pre-kitted in a single case, eliminating unnecessary picking, packing, and processing fees. The new boxes are perfectly sized to the product, reducing damage in transit and cutting costs on every order through a more efficient, lower-touch operation.
Let Kase show you how smarter packaging can shrink costs and speed up fulfillment. Talk to a fulfillment specialist today.
