Breaking Down Packaging Costs – How Much Are Your Supplies?

Because of the fast-paced, “click and forget” nature of e-commerce, the process of packaging and shipping products is often an afterthought in the minds of most consumers. However, this process is made up of a complex web of costs that businesses must untangle in order to make a successful delivery. It’s essential that businesses understand the true costs of packaging in order to minimize their expenses while still providing quality packaging that protects their products during shipping.

In this article, we’ll break down packaging costs and some of the hidden factors that impact both businesses and consumers alike:

Exploring the Costs of Packaging and Shipping

1. Packaging Materials

Packaging materials are the foundation of any business that ships products. There are a wide variety of packaging materials, including corrugated cardboard, bubble mailers, and padded envelopes, each better suited for certain products than others.

Package size plays a major factor in material costs. Optimizing package sizes is the best way to minimize material costs and reduce material waste without sacrificing product safety. Purchasing packaging materials in bulk is also a good way to lower unit costs, but businesses also have to consider the higher upfront costs as well as having the space to store large volumes of materials.

2. Filler and Cushioning Materials

Filler materials play a vital role in keeping products safe during transit. Bubble wrap, packing peanuts, air pillows, and more all provide essential cushioning, but costs can quickly get out of hand if they’re not used efficiently. Although the number one priority should be product safety, it’s important to find cost-effective options that provide adequate protection. Eco-friendly alternatives such as recycled paper and biodegradable packing peanuts can help manage costs while also promoting sustainability.

3. Tape and Labels

Adhesive tape and labels are essential items for being able to secure packages and ensure that they reach their destination without issue. The costs associated with these items can add up quicker than one might think, especially for businesses that ship in high volumes. It’s important to invest in high quality tape and labels, so businesses should try to purchase these items in bulk or explore reusable alternatives to offset these costs.

4. Shipping Costs

Shipping often takes up a significant portion of a company’s expenses if it is not handled properly. There are a variety of expenses that play into shipping costs, including package dimensions, weight, and destination. Packaging choices can greatly affect shipping costs, so it’s crucial that businesses optimize their package size and weight to cut down on shipping costs without sacrificing product safety.

5. Additional Considerations

In addition to the upfront costs of packaging materials and shipping, there are other “hidden” expenses that can affect costs for businesses and prices for consumers, including:

  • Labor Costs
  • Storage Space Rentals
  • Wasted Materials
  • Shipping Insurance and Liability
  • Inventory Management Systems

These hidden costs can significantly impact overall business expenses, so they shouldn’t be overlooked when developing packaging strategies.


Maximize Your Savings on Packaging and Shipping with Preferred Packaging Products

Since 1985, we have been the preferred packaging, logistics, and automation solution for businesses along the Colorado Front Range.

We specialize in custom package development and can help you optimize your packaging to maximize product protection, minimize material and shipping costs, and keep customers happy. We also offer a wide selection of high-quality generic packaging materials and products to suit all of your packaging and business needs.

Some other ways Preferred Packaging can help your business include:

To see what Preferred Packaging Products can do for your business, give us a call at (303) 444-4774 or get in touch with us online to get started.

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