How Your Package Design Will Affect Your Bottom Line

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Do you want to save cash and keep your customers happy? 

Let’s face it. You want to make a profit, otherwise you would have started a nonprofit, right?

Then you should know that your package design can seriously affect it. Going for random boxes means letting go of some extra dollars every time. This piles up to sneaky large expenses that will make a hole in your business pocket.

Here’s why your bottom line might go down the drain and how to considerably improve package design:

 

Failing to optimize the packaging space

Wasted space leads to wasted money. Fix this by arranging the products in such an organized way that you take full advantage of every bit of space. 

You can vacuum seal the contents to minimize the air inside, which can significantly optimize the overall package dimensions. If the item needs assembly, consider sending it unassembled along with a comprehensive and foolproof instruction manual. 

 

Choosing ineffective packaging 

Compress the goods as if your piggybank depends on it, because it does. It’s wrong to think that only weight and distance can influence the charges. Shape and size will contribute too. 

Don’t pick bulky packages or oddly-shaped ones. Those simply skyrocket the shipping costs. Use the most compact design possible. 

There should be minimal space between the package and the product within it, while adding enough cushioning to protect the structural integrity. Focus on a balance between avoiding damage and a cost-effective packaging. 

You can use a dummy product for tests so you can determine which packaging is durable enough considering the fragility of the items. Flawed package design is likely to collapse and get damaged by high humidity, overload or stacking.

Don't think you need preprinted, amazing looking boxes for every single product you ship, either. There are a lot of ways to create a memorable unboxing experience without breaking the bank.

 

Not knowing how shipping costs actually work

Some shippers still don’t know that you don’t really pay for the actual weight but the dimensional one comes into play too. Dimensional weight (DIM weight) calculates the size of your package by considering length, width and height. 

A big lightweight box won’t be cheap to ship. Actually, you’ll pay the price corresponding to the greater of DIM weight and actual weight.

The calculations vary slightly among carriers and when it comes to domestic vs international shipments.

 

For example:

When shipped through FedEx it’s (L x W x H / 139).

A box weighing 5 lbs and measuring 10x10x10 will have a DIM weight of 8 lbs. You’ll pay based on the 8 lbs DIM weight, not the 5 lbs actual weight.

Important fact: Know the difference between dimensional weight and cubic weight as well.

This particularly applies to USPS, which has special cubic pricing for small heavy packages that don’t exceed 18" in any one dimension and 20 lbs in total weight. 

The formula is: Length x Width x Height / 1728 = Cubic Feet

Some shipping software will let you access the USPS cubic pricing, but not every software is created equal. ShipStation lets you access it, but the rates are marked up from what you can get through other options. 

Do you want to boost your profits by getting the best cubic rates? 

We give discounts to everyone using the Essential Hub platform. 

 

Not thinking outside the box

More space means less cash for shippers. Going for oversized boxes is like buying expensive toys for a pet that plays with paper. It’s just a waste of money.

You can save by diversifying the packaging options. Have a variety of sizes and materials. The design process should take into account the size of the goods. Including padded envelopes and polybags reduces the dimensional weight.

Consider using boxes provided by USPS, FedEx, or UPS. You can get free packaging from the post office here, and the standard sizes will make it easier to select the proper option in your software.

 

Skipping the eco-friendliness and minimalism

Being eco-friendly is a big bonus point nowadays. If you still haven’t hopped on the sustainability train, it’s high time to do so. 

According to research, the top complaint in ecommerce is excessive packaging. On one hand, customers feel good when they contribute to a cause. On the other hand, they are seriously bothered by the big amounts of useless package fillers and huge boxes. Attract the eco-conscious demographic customers by advertising how your business supports sustainability.

Avoiding unnecessary packaging material lowers the weight of the parcel and thus the shipping costs too. Also, recycled packaging doesn’t just protect the environment, but prevents your bank account from getting endangered too. Recycled materials are generally cheaper to use.

You can get both robust and flexible green options. Include boxes made of recycled cardboard or flexible packaging by using polyethylene or polyolefin films produced in recyclable mono-layers. These films are biodegradable and don’t contain the controversial Bisphenol-A (BPA) chemicals.

It’s essential to come up with cost-efficient protective containers with the right sizes and weights that help you get cheaper shipping rates. Making this an integral part of the design process will significantly improve your bottom line.

If you want to know the best package size for your product and business, let us know today. Essential Hub works with all our clients to ensure they are getting the most out of package sizes and shipping carrier services. Find out how today!

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