15 Easy Ways to Reduce Packaging Costs for Your Business

Last Updated on April 17, 2024 by Packoi Team

If you care about your company’s bottom line, you will do what you can to improve operations and cut costs. You might lose thousands of dollars and ruin the reputation of your business with inefficient or unnecessary packaging.

Worldwide, online retailers ship an estimated 165 billion packages per year, which is only going up, according to a World Economic Forum analysis. On the other hand, a lot of money is going to waste because of this increase.

Making some simple changes can significantly impact a business’s bottom line at times. That also works for its product packaging!

The trick is to figure out how to reduce packaging costs without making products more vulnerable.

In today’s article, we’ll go over several efficient ways that businesses may use to reduce packaging costs. Keep reading to learn how to pull it off like a pro with 15 expert strategies!

Why Is Packaging Important for Your Brand?

The common belief is that packaging’s sole purpose is to protect products during shipment. The truth is, though, that’s far from the case! 

To top it all off, well-designed packaging can serve as:

• A potent branding device
• A powerful marketing tool
• A guarantee of happy customer

To stand out, you need to be creative, familiar with your brand, and enthusiastic about the design process.

Why Is Packaging So Expensive?

With the skyrocketing packaging cost, shipping items is a big challenge. The overblown prices are difficult for anyone, whether you are a business owner or an individual sending gifts to loved ones, to ignore.

Several key factors have contributed to the recent increase in packaging and shipping costs, such as:

• Worldwide delays and shortages in the supply chain (for example, due to the recent pandemic)
• The unpredictability of gasoline prices
• Wasteful production processes
• Improperly optimizing packing
• Prolonged durations of packing
• Poorly constructed packaging that causes damage
• Crazy labor costs
• E-commerce boom

Below, we have discussed some major reasons for high packaging costs:

1. Packaging Materials

Most packaging boxes are made from corrugated cardboard and paper, but the prices of these materials have never been higher. There are better options than these when you are searching for cheap packing materials. 

These rising prices have been caused by several things, such as recent lockdowns due to the pandemic, shortage of staff, and environmental laws.

But the three most general yet significant factors that play a vital role in cost variation are:

• Size
• Weight
• Shape 

There is also a need to rectify the imbalance in the paper and cardboard market that has arisen due to rising paper exports and scheduled repairs. 

2. Packaging Design and Custom

Factors including custom design and labor costs can influence packaging costs. Prototypes will certainly be an expense, regardless of whether you produce your packaging design or use a professional like Packoi.

People are now more into attractive branding and appealing packages. Online stores have created a big challenge for local stores by digitally presenting products of the highest quality. 

Moreover, many things are now delivered to people’s homes instead of being purchased in stores. Because of this change, companies now use small, creative, and appealing e-commerce packaging for individual items. 

As a result, the need for customized packing designs is significantly heightened, and the cost is rising.

3. Shipping Packaging

Shipping companies are taking advantage of the rising demand from consumers to increase shipping rates, even while businesses are facing significant challenges with worldwide logistics.

Transportation expenses have risen sharply due to the exponential growth in fuel prices over the last six months. 

Also contributing to the dramatic increase in cost is the fact that third-party delivery services and couriers are seeing an uptick in business. Shipping costs are affected by it, even if there is no connection with packaging.

4. Large Efficiency Gaps

Although there may not appear to be a clear correlation between packaging prices and inflation, the activities of packaging makers can substantially affect these costs. The increasing expenses and overheads of packaging suppliers can provide even more fuel. 

Factories that make packaging aren’t running smoothly because of the unpredictable supply of materials and the increased demand for packages. They also need to make sure they’re satisfying customer needs. 

Also, with the increasing prices of power and labor, the operational expenses of the machines are on the rise. 

How to Reduce Packaging Costs: 15 Easy Ways

Now that you know what packaging costs and what factors influence them, we can look at the best 15 strategies to cut expenses and boost your business’s ROI.

Cutting costs and increasing profits is a goal for every business. To reduce packaging costs, try these 15 easy and practical methods by our experts:

1. Go Green with Materials

One significant approach to reducing packaging costs is to look into environmentally friendly and cheap packing materials. Despite the initial investment being higher, sustainable packaging materials will save you money in the end. 

By choosing sustainable materials like recycled cardboard, your business can easily cut down packaging costs.

Using recycled and repurposed materials is usually more economical than new ones. According to the experts, waste-reducing packaging is another way to cut costs.

Plus, a lot of consumers care about being environmentally conscious. Almost 85% of today’s Gen X buyers are more inclined toward environmentally friendly goods.

Recycling and using biodegradable materials reduces waste and appeals to eco-conscious buyers.

2. Use Different Packaging Materials

To keep packaging expenses down, you must carefully consider your fundamental decisions when designing your customized package. 

You might think that investing in high-quality materials is the surest way to guarantee that your product will be delivered to your loyal customer’s doorsteps without even slight damage.

Truthfully, spending a fortune on materials of the highest is only sometimes necessary. 

When designing budget-friendly product packaging, keep these cheap packing materials and structures in mind:

1. Paper/Plastic Gusset Bags

• Ideal for edibles and other delicate products
• Low weight
• Available in various sizes
• Suitable in terms of functionality
• Cheap packing materials

2. Folding Carton

• Suitable for medicines, edibles, and electronics.
• Available in various paperboard options
• Ideal for unique shapes and sizes
• Durable in nature
• Offers easy customization

3. Corrugated Fibre Board

• Suitable for dry items, edibles, e-commerce shipping, etc.
• The best option for long-distance shipping
• Available in various sizes
• Different thicknesses are available
• Easy to shape
• Durable and light-weight

3. Simplify Designs

A simple product packaging design may do wonders for your company’s reputation and the happiness of your target audience. 

If you want your product’s packaging to be noticed among the competition while remaining simple, there are plenty of affordable options. 

You can make your packing stand out by adding colorful tissue paper or ribbons. You can also try self-seal garment bags or go with kraft paper without breaking the bank!

4. Optimize Packaging Size

Nearly all customers (93%) have experienced excessively wasted packaging space in a recent delivery. To cut down on packaging expenses, consider how you can use space better by optimizing the sizes and shapes of your products’ packaging.

Experiment with different ways of arranging your things in the boxes. The objective is to squeeze as many things as possible into as little space as possible while keeping them safe in their packaging.

On the other hand, the space can be more efficiently utilized with a custom-made box for your goods!

Less room is needed on your shelves and in the delivery truck when your product is packaged in a way that encases it snugly.

5. Opt for Multi-Functional Packaging

There may be an exponential increase in packing materials needed as the business expands and introduces new products.

This results in many products with the same size packaging taking up shelf space. This does not imply that there is a universally applicable packing solution; in fact, such a thing is relatively rare.

Even when many items can fit into the tiniest container, a few likely need to fit and take up too much room due to the packaging process.

Put the product in a custom insert and utilize your smallest box size instead of making a special one for that product. This allows you to make more room on your shelves, so you can order more and get a better deal per unit.

6. Choosing the Right Manufacturer

While it may be tempting to hunt around for the lowest price while trying to reduce packaging costs, the advantages are typically temporary. 

Instead, you may save a ton of money in the long run by teaming up with a partner who is well-versed in packaging and takes the time to learn about your company. This will allow you to get high-quality packaging solutions, even if they initially seem expensive.

Evaluating and contrasting different production networks when deciding where to make your packaging is crucial because each has its own unique set of procedures, certifications, and areas of competence.

Consider whether you deal with local or international manufacturing organizations; this will affect their track record and selection. 

7. Choose Lightweight Packaging

The weight of the shipment has a direct correlation to the shipping costs. As a result, you should always opt for lightweight but long-lasting packaging materials.

In comparison to heavier packaging materials such as corrugated cardboard, wood, glass, and steel, lighter alternatives include:

• Plastics
• Tinplate
• Foam
• Bubble wrap
• Reinforced cardboard. 

If you want to be sure your products will be safe in transit and storage, you should test your packaging materials before ordering a lot of supplies.

8. Get Rid of Anything Unimportant

Personalizing your sales with a handwritten note of gratitude can have a significant impact on customer satisfaction. But it might also significantly affect your packing budget and shipping costs. The glossy appearance of these brochures and the return on investment of these bundles should continually be monitored when you are into custom packaging.

You might have your brand’s logo printed inside each box instead of a small, simple message if that’s what you were planning to do. Customers’ happiness and loyalty will be unaffected, and you’ll end up reducing packaging costs as well as shipping costs.

Eliminating superfluous elements means doing away with filler and padding. Just because your custom packaging is enormous doesn’t mean you can’t use it.

9. Think About Automating Packing 

Automating part of the packing process can help a lot of companies. One example is the use of pallet wrapping machines, which greatly improve the efficiency of your packaging operation. In addition to reducing pallet wrap waste, they will speed up the packaging process.

You may automate your packing process with a variety of tools, not simply large machines.

Consider investing in an electronic paper tape dispenser if you find yourself frequently using gummed paper tape. It will save you time, effort, and money.

10. Provide Employee Training

Staff members who have received proper training are valuable to any business for many reasons. 

They can swiftly and accurately prepare orders and package products. All they need is to be competent with the equipment and tools at their disposal.  For their good and to provide a problem-free order-prep and packing procedure, they are secure. 

Your employees are both your most valuable asset and your biggest drain on resources. Assume for a moment that your picking operator is unskilled.

That way, you end up paying for subpar results or, worse, problems that end up costing you more and driving up packaging and overall charges.

11. Logistics Planning Saves Money

Logistics aids in the development of the most efficient, cost-effective, and timely packing methods and routes, much like transportation, which has several ways to get from A to B. 

Your timetable and the location of your manufacturer will determine which solutions are most efficient and cost-effective. Choosing a form of transportation is heavily impacted by your timetable and due dates. 

Depending on your packaging requirements, air shipment can be pricey. Shipping by water is the most economical option if your schedule is flexible.

Collapsible packing allows you to put more boxes per pallet, which is advantageous when shipping by sea because the shipping costs are charged by volume. 

Shipping via ground is an option across the country, although the price will vary depending on the dimensions and weight of your order.

Consider the total weight and dimensions of your product and packaging when estimating shipping prices. This will give you a better idea of how much it will cost to send the custom box design and packaging.

12. Manage Your Inventory 

You should run your packaging stock just in time, just like any other stock. Spending money on storage space and unnecessary inventory is the result of having too much stuff. You risk a broken supply chain and unhappy consumers if you need more inventory on hand. 

Because of this, maintaining an accurate inventory of your packing materials is essential. You need to be punctual with your orders and aware of how long your goods will last. Also, we made sure not to overstock by calculating all of these quantities.

13. Be Mindful of Product Care

Protecting whatever is within is the main goal of any package. If you use inexpensive, unsuitable supplies or packaging, you’ll wind up spending more money, to the point where it would have been more cost-effective to purchase the expensive packaging initially. 

Breakages will occur more frequently without protection, leading to an increase in returns. The long-term costs will be higher, and your company’s reputation will take a hit as well.

14. Choose Fewer Vendors

Shopping around for things is a certain way to squander money that could be better spent elsewhere. Dealing with different suppliers just makes things more complicated in the event that you decide to alter any part of your packaging design.

Modifying the design in any way, even slightly, requires you to make sure all of your suppliers are aware of the change by contacting them individually. Adjust your purchase to reflect these modifications. Verify that the alterations are up to snuff with the new design specifications.

There is a single point of contact for all matters related to packing when you choose a single provider. This can help you save money on delivery while also saving you the trouble of contacting different vendors.

15. Partner with a Customized Provider

Another option to cut costs is to partner with a company that offers personalized packaging. It is possible to outsource some of the tasks of identifying suitable boxes for your company to a provider, saving both time and money.

To maximize the effectiveness of your packing and save money, they can assist you in determining the optimal sizes and forms.

Another important thing is to make sure your design is striking and different from what others are offering.

Customized providers frequently provide expert design and marketing assistance. They will help you in every step of the process which will save you time and effort.

Conclusion

Now you know and understand that great packaging is relatively inexpensive!

Creating eye-catching branded packaging without breaking the bank is possible in so many ways. 

You can save money on packing materials and reinvest them by simply using various high-quality materials, the right sizes, fewer vendors, practical design, efficient procedures, logistic planning, staff training, and definitely, an ideal customized packaging provider!

Get a better deal on your customized packaging when you tell us what you need!

Partner with Packoi-The Most Affordable Customized Service Provider

When looking to reduce packaging costs, customized packaging may be a headache.

Packoi is pleased to offer its extensive knowledge and expertise to assist you in reviewing and optimizing your packaging alternatives according to your budget!

If you want to know how to package your products efficiently while cutting expenses and embracing innovation, contact us right away!  We’ll help you figure it out!