The Complete Guide to E-commerce Packaging

Authored by TARA CONWAY

Tara Conway is an Advisor, Digital Pioneer, Speaker, Ecommerce, and Logistics Expert. Tara offers a retailer's perspective on logistics, shipping, and customer experience. She speaks at top conferences like eTail Canada and DX3 and mentors female founders in logistics and tech.

Think back to the last time you received a package. Was it just a plain brown box, or did it feel like unwrapping a gift?

For an e-commerce business, packaging isn’t just a container; it’s often the only physical touchpoint between your brand and your customer. This makes it a powerful part of the overall experience.

From “throwing a product in a box” to designing a package that builds brand engagement, the role of e-commerce packaging has evolved significantly.

In this guide, we’ll explore the role of packaging in e-commerce and outline the steps to make your packaging work for your business.

Table of Contents

• Why Packaging is Important in E-commerce
• Types of E-commerce Packaging
• Primary Objectives of Packaging
• Key Elements of Shipping Packaging
• Carrier Requirements & Dimensional Weight (DIM weight)
• How to Choose the Right Packaging for Your Business
  

Why Packaging is Important in E-commerce

E-commerce packaging is crucial not just for protecting products, but for creating a memorable brand experience. Here’s why it matters:

• Durability: Packaging must withstand rough handling during shipping. Choose materials strong enough to keep products safe.
  
  
• Brand Perception: Packaging now reflects your brand, especially for luxury items. Thoughtful design can enhance the unboxing experience, leaving a lasting impression.
  
  
• Marketing Opportunities: Shipping packages are valuable real estate for promotions. Insert loyalty program offers, QR codes, or add branded elements to drive engagement—like Amazon, which sells ad placements inside their packages.
  
  
• Sustainability: Customers care about sustainability. Consider recyclable, biodegradable, or compostable packaging. Though it may have a cost premium, it resonates with environmentally conscious customers.
  
  

Types of E-commerce Packaging

In e-commerce, it’s important to distinguish between product packaging (often outside your control) and shipping packaging (within your control).

Product packaging is usually designed for retail display, but may need extra protection for shipping. Customizing the shipping packaging ensures products arrive safely while providing a branded experience for the customer.

Primary Objectives of Packaging

Customer Satisfaction

Great packaging enhances the shipping experience. Today’s customers expect more than just a product in a box; they want a shareable experience. Here are some ways to elevate packaging:

• Instagram-worthy unboxing
• Personalized thank-you notes
• Surprises like samples or stickers
• Reusable or collectible packaging

These touches can make your brand memorable, encouraging customers to share their experiences.

Product Safety

Beautiful packaging doesn’t mean much if the product arrives damaged. For fragile items like ceramics, you may need extra layers of protection.

Key considerations for safety:

• Use multiple layers for fragile items
• Prevent movement with void fill
• Choose weather-resistant materials for sensitive products
• Include clear handling instructions for carriers

Cost Effectiveness

Packaging should be protective yet cost-effective. Consider these tips:

• Balance premium materials with shipping costs
• Optimize package sizes to minimize dimensional weight charges
• Streamline packing to save time and money
• Buy packaging materials in bulk when possible

Brand Experience

Your packaging tells your brand’s story. Consider custom fonts, colors, and materials to reflect your brand’s personality.

For eco-conscious brands, options like recycled materials and eco-friendly inks are essential. For luxury brands, packaging should reflect sophistication.

Marketing Potential

Custom packaging can turn the unboxing moment into a shareable experience. By adding QR codes, exclusive offers, or even ads, you create additional marketing touchpoints that can increase engagement and revenue.

Key Elements of Shipping Packaging

Since e-commerce products require different packaging solutions, here are the primary types to consider:

Product Packaging

The manufacturer’s packaging, often designed for retail, may need additional protection for shipping. Often you will run into challenges like this:

• May not offer enough protection during transit
• Could require extra layers of packaging
• Doesn't align with your overall packaging strategy

Primary Shipping Containers

Common shipping options include:

• Corrugated Boxes: Widely used for e-commerce, they’re customizable and come in various sizes.
  
  
• Poly Mailers: Great for clothing and soft goods, these lightweight, weather-resistant options reduce costs and save storage space.

Protective Materials

Different products need varying levels of protection.

For fragile items, consider:

• Foam inserts
• Double-walled bubble wrap
• Molded pulp inserts
• Corner protectors

For standard items:

• Kraft paper
• Air pillows
• Biodegradable peanuts
• Corrugated inserts

Branded Elements

These details create the “wow factor.” Consider:

• Custom-printed boxes or mailers
• Branded tissue paper, stickers, or tape
• Thank-you cards or small tokens of appreciation

Digital touches can also be effective:

• QR codes linking to tutorials or exclusive content
• Social media prompts encouraging customer engagement
• Warranty registration through packaging inserts
  
  

Carrier Requirements & Dimensional Weight (DIM weight)

Managing shipping costs is a top priority for e-commerce businesses. Carriers charge based on actual or dimensional weight, whichever is higher. Choosing box sizes that match your product minimizes empty space and shipping costs.

Dimensional Weight Basics

• Choose boxes that fit the product size
• Understand that carriers use different formulas to calculate dimensional weight (use our dimensional weight calculator for that)
• Packaging size directly impacts your bottom line

Smart Shipping Strategies

• Cost Optimization: Use appropriately sized boxes, break down large products, negotiate carrier rates, and audit costs regularly.
• Compliance: Follow carrier guidelines, understand restricted items, and use correct labeling.
  
  

How to Choose the Right Packaging for Your Business

Step 1: Analyze Your Products & Needs

Examine the categories of products you sell to determine each one’s packaging requirements.

Certain products, like holiday gifts, may benefit from discrete packaging. For example, Toys R Us offers plain packaging options to preserve the “Santa Claus” surprise for children. If your products serve unique needs, discrete packaging can enhance the customer experience.

Packaging also plays a significant role in managing returns. Since 15-25% of e-commerce revenue may come from returns, a return-friendly packaging strategy is critical. Packaging that’s easy to open yet secure enough for reshipping can help reduce return costs and boost customer satisfaction.

Testing your packaging to ensure it works efficiently within your operations is equally essential. Assess assembly time and storage requirements to improve fulfillment.

Step 2: Test and Sample Your Packaging

Test your packaging options by:

• Requesting different samples and sizes
• Conducting shipping tests to ensure protection
• Timing assembly and checking storage needs

Step 3: Calculate Costs

Consider all packaging costs, including:

• Direct costs like materials and custom printing
• Shipping costs, comparing actual vs. dimensional weight
• Operational expenses such as labor, storage, and fulfillment

Step 4: Implement and Scale

• Start small, test with a few products, and gather customer feedback
• Monitor damage rates and adjust packaging based on results
• Scale up gradually as you refine your approach

Pro Tips for Success

• Test packaging before committing to bulk orders
• Consider both customer experience and operational efficiency
• Stay updated on sustainability trends
• Pre-pack popular items to improve efficiency
• Regularly negotiate carrier rates and audit shipping costs

Conclusion

E-commerce packaging is a balance between protecting products, delivering a memorable brand experience, and managing operational efficiency.

By following these steps, you’ll be well on your way to creating packaging that delights customers while protecting your bottom line. Keep testing, optimizing, and adjusting as your business grows!