For online retailers, many factors push the packaging costs up, and there are a very few ways they can reduce your packaging costs dramatically. When it comes to lowering the costs of packaging, retailers have to face many challenges to get economical wholesale shipping supplies. So here is a guide to help you find ways to cut down on the packaging costs and save money on your packaging supplies. 

What Factors are Responsible for High Packaging Costs?

No business wants to compromise the look or functionality of its packaging as it is the first physical thing that the customers encounter. Therefore, it needs to make a good impression. Moreover, changing the packaging to reduce costs can cause further problems, which include customer returns and damaged deliveries. So, how can retailers reduce packaging costs without compromising the safety of the products? The best way is to recognize the inefficiencies and resolve issues with cost-effective wholesale shipping supplies. 

Some of the factors that influence the packaging costs for businesses include:

• Parcel Weight: Heavier packages will raise the handling and transportation costs. Volumetric or cubed weight or dimensional weight can also influence the overall cost of shipping your packages. Hence, these things should be factored into your pricing. 

• Empty Space: Not having the right size packaging will have you pay more to ship the empty space, also referred to as the void area. This cannot be avoided sometimes, especially if you are shipping unusually shaped items.

• Material selection: Fragile items can move around boxes if packed in unsecured packaging. This happens when items aren't secured within packaging boxes and is called migration. Such packages can get damaged in transit, or the packaging could be compromised, thus exposing goods to the elements.

• Shipping fragile products: Easily breakable items require greater packaging protection, careful handling, and proper labeling. Additional packaging can add to the dimensional weight. Hence, you must seek the most effective packaging solutions in order to minimize the packaging costs.

• Longer transit journeys: If you are shipping the product outside your country, the packaging costs can increase significantly, mainly because more fuel and handling are required to complete the deliveries. Moreover, the risk of damage is also higher for longer journeys. Hence, packaging costs are further increased by the additional protection needed for the products.

Effective Strategies to Reduce Packaging Costs

Retailers need to keep in mind that profitability, along with the above factors, influences packaging costs. Here are some ways retailers can combat these challenges without compromising some aspects of their business and make savings on their packaging costs.

• Reduce excess packaging materials: Determine how much tape is required to wrap around the boxes to make them secure. So self-seal boxes offer a great alternative that mitigates the need to use tape and improves packing time. Premier quality shipping boxes are sturdy enough for most large and mid-weight products, especially if you are looking for something heavy-duty and cost-effective. 

• Seek alternative packaging solutions: To reduce cost, you can look for alternative packaging solutions, such as paper and cardboard packaging. These alternatives can even replace plastic-based packaging without compromising functionality. 

• Use custom box inserts: Incorporating custom inserts to hold the products in place will keep fragile products safe in transit. These are often cost-efficient and can reduce the amount of void-filling packaging materials as well as box size. This technique is particularly useful for shipping cosmetics. Box inserts offer added security and also create an appealing way to display your products. 

• Outsource fulfillment tasks: If your packaging lines are manually operated, you can move the responsibility of picking and packaging the products to a fulfillment provider. This will allow you to focus more on running your business rather than packaging. A reliable third-party logistics service can help improve packing efficiency and also help communicate accurate shipping information to customers.

• Inventory management software: Having the right inventory management systems to manage your stock levels will improve productivity. Automation can offer numerous benefits, like minimizing storage costs and error reduction.

• Increasing the volume of packaging supply orders: Wholesale packaging is more cost-effective than buying in smaller batches or only when needed. Ordering the packaging supplies in bulk can offer you the advantage of wholesale prices, reduce shipping fees due to fewer deliveries, and improve cash flow. You may also opt to buy custom packaging in large runs to enjoy these benefits.

• Using fewer packaging suppliers: Make sure that you maintain one point of contact for all your packaging needs in order to save time and money. Look for suppliers that offer a comprehensive range of packaging supplies along with several customization options. The best packaging supplier will cover all your packaging design, print, and inventory management requirements.

Takeaway  

So, if you want to minimize your packaging supplies costs, follow these effective strategies. Avoid going for packaging that requires a marginally higher initial investment. The best suggestion is that you go for wholesale buying or order the products in bulk, as this can significantly help you minimize the packaging costs.