There is an increase in the price of everything. From raw materials to logistics, the costs are very high.
Packaging is not an exception to this.
As a business owner, you’re constantly looking for ways to reduce your production costs and maximize your profit.
Reducing your packaging costs is essential for your business to stay competitive.
Efficient packaging does not only reduce your overall production costs, it also plays a significant role in your customer’s satisfaction.
The apparel industry specifically faces a unique challenge when it comes to packaging.
Finding the right packaging solution can be difficult due to the apparel industry’s wide range of products, sizes, shapes, and materials.
Consumers are also becoming more aware of sustainable packaging, which has increased the demand for eco-friendly packaging solutions.
This has added another layer of difficulty to the packaging issue.
In this article, you will learn how to address these challenges and provide practical solutions for reducing your packaging costs while maintaining quality, meeting customer’s expectations, and reaching your sustainability goals.
Factors that contribute to higher packaging cost
Before we see how to reduce packaging costs, we must analyze the factors leading to high packaging costs.
These factors include:
-
Poorly designed materials
If the packing materials are not durable enough to make sure that the products do not get damaged in transit, it can lead to a high packaging cost.
You should use products with high quality and sufficient strength.
- Cost of materials
If the cost of the packing materials or any materials needed to assemble the package increases, it will definitely lead to an increase in the packaging cost.
- Size of the package
The larger your package is, the more it will cost, so this factor also contributes to the overall package cost.
- Design
The design of the package is also a factor that can lead to a higher packaging cost.
It is always a good idea to use standard sizes and shapes for product packaging.
- Shipping cost
The transportation cost will also have a direct effect on the cost of the packages.
These are some of the factors that can have a direct effect on your packaging cost and make it higher.
Now, let’s see the strategies you can implement to reduce your packaging costs.
Ways to reduce packaging cost
Know your packaging options
You need to be aware of the different packaging options available for your products.
The more varieties you need for your products, the more you’ll be paying.
When you’re choosing the right packaging, start by thinking about the types you might need. There’s primary packaging that directly touches your product, secondary packaging that groups your products, and tertiary packaging used for shipping and handling in bulk.
Each type serves a different purpose and choosing correctly can really impact your costs.
To pick the right packaging, consider what your product needs. Does it need extra protection or is it durable on its own? Where will it be sold or used, and what kind of handling will it endure?
Make sure whatever you choose complies with any regulations, especially if you’re in sectors like food or healthcare.
Reduce your packing time
Minimize your packing time with automation.
Reducing your packing time per unit is a very effective way to reduce the overall ongoing cost.
For example, using packaging tape to seal boxes does not only consume your time, it also consumes your resource – tape – this will lead to you spending extra.
You can solve this by using self-locking boxes that only need you to expand them for you to lock the package.
Reduce your number of suppliers
Reducing the number of suppliers you use for your packaging materials is a smart move to save some cash, especially on shipping costs. When you buy from multiple suppliers, each one tends to charge for shipping, and that can really add up.
And let’s be honest, managing orders and relationships with several suppliers can get overwhelming fast.
Here’s how you can tackle this:
Start by reviewing all the suppliers you currently work with. Make a list of what you’re buying from each and check the costs, including how much you’re paying for shipping.
Now, see if one of these suppliers can provide most or all of what you need. You’d be surprised how many suppliers would be willing to widen their offerings for a loyal customer.
Next, consider everything that comes with changing suppliers—not just the price of the materials but also the reliability of the supplier, how much they charge for shipping, and the quality of their customer service.
Sometimes paying a bit more per unit might be worth it if it means saving on shipping and getting better service.
Having fewer suppliers can make your life easier, too. You’ll spend less time on the paperwork and more time on other parts of your business.
It also means you can build a stronger relationship with your supplier. Being a bigger client can get you better service, faster responses, and sometimes even discounts.
Customize your package for your product
You can’t just get a one-size-fits-all for your package.
Look for the package that suits the kind of product you sell and make use of it.
Optimize your packages by using smaller boxes
Don’t just use big package boxes for your products.
Invest in boxes that will fit the exact products that you sell and ship as many products as possible in one shipping box.
Some of the packages may even be small enough to go in large, padded, envelops instead of small boxes
This will reduce the cost of shipping and it will affect the cost of packaging.
Redesign to optimize packaging
Sometimes, your product package is costly due to style, not size.
Consider redesigning your current packages to optimize them for sale.
Stay tuned to packaging industry innovation
Look out for the innovations that are brought up by the packaging industry.
The packaging industry invests in resources and development to design packaging products that are more secure, durable, lightweight, and environmentally friendly.
It reduces the probability of transit damage, reduces the amount of space it takes up on carrier trucks, and also reduces the probability of spillage.
All these add up to what you’ll be saving in cost.
Maintain and repair your packaging machinery
Maintenance of your packaging materials is also very essential.
Make sure the machinery you use in your packaging is always checked so that it will always be in good condition.
Eliminate unnecessary packaging items
Make the packages as simple as possible.
No need to make it too complicated.
Invest in high-quality packaging products that would be easy for you to manage.
These are all the cost-effective tips for better packaging you can implement in your business.
Now, let’s see some cost-effective packaging materials you can use for your business.
Cost-effective packaging materials
These include:
Compostable Mailers
Choose a sustainable mailing bad when shipping clothes.
Nowadays customers prefer sustainable options such as compostable or recycled poly mailer bags.
Custom tissue paper
This is very affordable and easy to use.
It also makes the item look better while showcasing your brand.
Custom tissue is also great for shipping products safely because it adds an extra layer of protection without adding much weight.
Compostable garment bags
This ensures that your customer’s closing item reaches their destinations without a wrinkle.
The transparent material not only lets your customers see a preview of their purchase, but it also maximizes space within the packages ensuring that the package is safe.
Custom drawstrings
With custom drawstring bags, you can elevate your product presentation.
You can also make sure that fragile items remain secure while in transit.
These bags also serve as a gift to your customers because they are reliable and they add a touch of elegance to their unboxing experience.
Custom labels, tags, and stickers
This is another way to put the finishing touches on your packaging.
You can customize your business logo on stickers and attach it to your packaging boxes or the custom tissue paper.
So that will be the first thing your customers will see when they receive their package.
Now, you want to partner with someone who actually knows how to give you the best quality customization at a good price. So, I’ll recommend you invest in a reliable fulfillment agent like Globallyfulfill. They’re great because they also offer sustainable packaging.
Conclusion
In conclusion, packaging costs are inevitable. But there are strategies you can use to reduce your packaging costs while maintaining the quality.
You should know the options for packaging you have, optimize your packaging by using smaller boxes, redesign your packages to reach optimality, maintain and repair your packaging machinery, and stay tuned to the packaging industry innovations.
These are all ways you can reduce your cost of packaging as a business owner.
