9 Reasons Why Packaging is Important in the E-commerce Industry

You must be thinking what packaging has to do with being successful in the e-commerce industry. The answer is, it plays a bigger role than our expectations, especially in an increasingly competitive industry. Simply put, good packaging can play a key role in the success of a business.

We are all living in the fast-paced world now, don't we? We really don't have time to buy, use, and compare several products before choosing the best one. No - this is not how the modern world works. Today, it is all about the first impression. If your product packaging is good enough, you will beat the competition.

Many businesses operating in the e-commerce industry are now investing sufficiently in their product packaging. They are coming up with new ways to make it more creative and aesthetically pleasing.

We’ve all heard stories about eBay or other international online retailers like Amazon have delivered products in unreasonably oversized boxes. This results in the damage of the product as well.

Paying attention to the packaging will not only ensure the product stays safe from damage, but will also mean multiple added benefits such as customers being more drawn to your products, helping largely in brand promotion, creating a good first impression, reducing costs and many more.

Here are 9 reasons why investing in packaging will substantially help your business.

• Helps Cut Down on Company Costs

Efficient and strong packaging will help in cutting down costs to a great extent. The product will be safe from damage if it is packed properly. This will reduce the risk of it being sent back by the customer.

The company has to suffer extra costs when a product is sent back by the customer. This is due to the reimbursement costs that the company has to bare. It will also include an additional shipping cost.

This can be avoided by making sure that the quality of your packaging is good enough to handle the product.

• Gives Rise to Customer Loyalty

Packaging plays a key role when it comes to creating a good relationship with your customers. It makes sure that they continue to order from your business in the future.

Customers will only take a few seconds to form an opinion. The packaging of your product is the first thing they will see, meaning the first thing they will judge.

Packaging adds to the experience of the user. It determines whether or not the product is easy to use. Bad customer experience has the potential to hamper growth, and a good experience creates customer loyalty. Customers even offer to pay higher than the original amount in some cases if you manage to impress them.

• Increases the Value of the Brand

The packaging of the product has a great part to play in maintaining the quality of the product it carries. So your packaging shouldn't just be a plain box that carries the product. It needs to keep the product safe from tears or breaks.

All kinds of products require different customized packing. A food item, for example, can't just be delivered in any box. It's packaging should be temperature controlled. It should also be compatible with the food, making sure it doesn't become stale.

Paying attention to detail is what helps in increasing the value and reputation of the brand in the market.

• Packaging is as Important to the Customers as the Product Itself

Research has proved that customers notice the packaging of the product as much as the product itself. The way you pack your products should be a representation of what the brand stands for. This includes its theme and its identity.

Clumsy packaging will leave a very bad impression on the customer, regardless of the quality of the product. This will prevent the business from turning into a brand name. Consider a renowned brand like Samsung.

Imagine if its phones came in dull brown boxes. That would substantially affect its brand identity and value. It conveys the message that a cheap cost cutting tactic has been used.

• Expands the Customer’s Interest

Studies have shown that for multiple reasons, the packaging of the product increases the customer’s interest by 30%. This simply means attractive packaging is all about more business for the company.

Not having ever delivered a damaged product, earning a brand value which attracts customers, etc. are all a reflection of good quality packaging.

Good packaging has the benefit of achieving the strongest form of marketing. This is the company’s growing reputation through word of mouth. An impressed customer will definitely talk about their good experience with family and friends. That's free marketing in simple words.

• Helps to Reduce Shipping Time

One thing that will annoy customers very fast is a long or delayed shipping process. A timely delivery can only be guaranteed when every part of the pre-shipping process is carried out competently. That includes the packaging too.

If boxes take too much time to put together and seal efficiently, then they can slow down the entire process.

Your business should have the ability to pack the products as systematically as possible. This will make it possible to give your customers the option of delivery within the same day as order placement.

• Good Opportunity to Stand Out

Brown cardboard boxes is now considered a dull and unappealing way of packaging. Packaging is also your opportunity to stand out, using the design, color theme, and information you use on the package.

Seeing that your competitors don’t spend too much time on the packaging is your chance to be more creative and attract more customers. Offering your customers different packaging options such as classic, premium or environment-friendly packages will add to the success of your e-commerce business.

• Good Packaging Brings the Customer Back!

A customer is sure never to return again if a damaged, torn or lousy box is delivered to their place. Spending 50 something dollars and receiving the item in an unattractive package can be a real turn off, so make sure not to put your customers through that!

• Appropriately Sized Boxes will Cut Shipping Costs by 30%

Packaging will add to your costs regardless of being partnered with a courier service or shipping company. Packaging in oversized boxes is not only annoying for the customers, but it also adds to extra costs. This is due to the volumetric shipping charges.

Passing over shipping costs to customers is not a good idea either as it has the potential to hinder growth. This is another reason why paying attention to the packaging will help you largely in the long run.

Put Simply - Good Packaging Isn’t Just a Marketing Tactic!

Mostly ignored as just another marketing tactic, good packaging, especially when you’re operating in the e-commerce industry, has the potential to attract more customers, generate a good word of mouth, reduce company costs and you just read the rest!