The Economics of Packaging: How Cardboard Box Variety Affects Your Bottom Line

Packaging plays a crucial part in protecting and shipping products, but the industry is changing rapidly. In 2021, retail ecommerce sales amounted to approximately 5.2 trillion U.S. dollars worldwide, so the how, what and why of packaging should be at the top of any business agenda. In order to maximise profits, businesses need to look at packaging as a benefit instead of an added cost.

Most packaging is designed to eventually end up as waste, but focusing too heavily on this is what can put businesses at risk of not surviving the current economic climate. Instead, packaging should be circular by design. Companies need to look at the entire lifecycle of those materials as well as what will be the contents.

Increasing the Profitability of Your Packaging

Every item shipped won’t be the same. It’s not possible to place your items in a standardised cardboard box of the same dimensions, shape and design. There needs to be variety with your packaging, and ultimately, there needs to be a positive impact on your bottom line. While it may not seem like the two are connected, there are multiple ways one affects the other.

What do we mean by ‘cardboard box variety’?

Different Sized Boxes

By opting to produce cardboard boxes in multiple sizes, businesses will likely produce less waste. There will be less need for other packaging supplies such as bubble wrap or biodegradable void fill as the item should fit more comfortably inside its associated box.

How does it affect your bottom line?

Not only will you be spending less on unnecessary items and excess packaging, but you’ll also be producing less waste which directly impacts the environment.

Consumers are also increasingly aware of the social discourse surrounding the environment and packaging. This is driving all businesses to think more about what they produce. Companies need to get their practices in order so they are fit for a future that puts sustainability and profitability together. This will in turn result in more customers choosing you over the competition.

Varying Structure

You won’t put a bottle of wine in a box designed to hold a feather. It’s an extreme example but it does prove a point. The structure and makeup of your cardboard packaging is highly important. Corrugated and double-walled cardboard boxes provide extra support to carry heavier items. That bottle of wine will also be better transported in a bottle carrier.

How does it affect your bottom line?

Product returns. If your packaging isn’t designed to protect your product while it’s in transit, then it’s more likely to arrive with your customer damaged. This then puts added pressure on you as a business to organise an exchange or refund, all at an additional cost. On top of that, most returned or damaged products end up in landfill, so you’ll also be harming the environment.

Bespoke Box Design

Choose a box manufacturer that can create beautiful custom box designs for your products. Shipping your items in a plain cardboard box is fine, but if you want to take it to the next level and keep your customers engaged, switch up your packaging design. You can do this by choosing seasonal designs or even just having multiple options available in your brand colours to keep things interesting.

How does it affect your bottom line?

Customer retention is key in order to survive this current economic climate. There will always be competition. In order to ensure your business can keep up, you need to focus on creating the best customer experience. Your customers will be excited to receive your products and want to order from you again.

Every business should be focusing on what they can do to adapt and grow in order to ensure they remain profitable and competitive. Packaging may not be a top priority, but it really can make a difference to your bottom line. If you want to discuss your options, you can get in touch with the ASC Direct team who will help you with any packaging-related queries. 

James Palfrey-Smith is the Commercial Manager at ASC Direct with extensive experience in both operations and sales. James is passionate about solving packaging problems, delivering fast customer support, and building lasting relationships. Outside of work, he enjoys outdoor activities like hiking and skiing. A fan of real ale and business podcasts, he continuously seeks personal and professional growth. 

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