The Future of eCommerce Packaging
PakFactory
Innovative end-to-end packaging solutions for businesses and brands of all sizes.
The future of e-commerce and e-commerce packaging has never been brighter, as smartphones and the internet are becoming more readily available to a broader audience worldwide.
Still, your business must be ready to quickly adapt and adopt innovations and trends to be successful in a rapidly growing market saturated with competitors. More and more consumers are deciding who they shop from not solely on a given product but also on external factors like eco-friendliness, interactiveness, personalization, and innovation.
In e-commerce, the package is as important as the product, and companies shouldn’t be afraid to adopt new alternatives and innovations! So, in this article, we will cover the emerging trends you need to know that are shaping the future of e-commerce packaging.
Defining eCommerce Packaging
E-commerce packaging is the materials used to ship products to the consumer after purchasing an item online. This packaging includes elements such as the outer box or mailer, infill materials, and any other inserts companies might add.
And though packaging originally came from the need to protect a product during shipping and handling, focusing solely on function is not the way to go in the current and future market of the e-commerce industry.
Packaging for eCommerce and the Unboxing Experience
On its own, unpacking a regular box is bland; there is nothing special about opening an unmarked box with no creativity or added surprises to go along with it.
In the current e-commerce market, many companies are starting — and should continue — to implement creative ways to enhance this typically boring activity of unboxing a product. Yes, a package’s primary function is to protect the product, but that doesn’t mean it shouldn’t enhance the customer’s experience. But how do you do that?
Safety & Brand Reputation
First and foremost, e-commerce packaging is essential for brand reputation and product safety. Product protection is the most basic function required for all e-commerce packaging, and this fact will not change. Customers are easily put off when receiving damaged packages, so ensuring your e-commerce packaging is strong enough to withstand shipping and arrive at your customer’s doorstep undamaged is a must.
Product Promotion, Custom Packaging & Customer Attraction
A unique package that proficiently showcases a company’s brand image and personality will increase your product’s perceived value and the probability that prospective customers will purchase from you over competitors.
In addition, the added experience and excitement created when unboxing a customized e-commerce package will encourage customers and even online influencers to share this unique experience with their viewers, family, or friends on social media, further increasing your brand’s marketing reach.
Current State of eCommerce Packaging
With the market for e-commerce goods changing drastically and growing faster than ever, so too are the packaging methods and the customers’ values. E-commerce websites have become a prevalent choice for purchasing goods due to their convenience, which includes direct-to-home delivery and easy product searching.
But alongside a rapidly growing e-commerce industry comes the increased waste produced and the logistical requirements needed for the millions of packaging transported to customers regularly.
Packaging Materials Used for eCommerce Packaging
Corrugated shipping boxes and padded mailers have become staples in the e-commerce market. Additional packaging materials, such as air pillows, tissue paper, packing peanuts, and bubble wrap, are also commonly added inside the exterior packaging to fill void spaces and prevent products from shifting during transport.
But though these options are great for protecting the product and customizing your package to cater to the unboxing experience for customers, the same is only partially true regarding sustainability and eco-friendliness.
The Challenges with Online Shopping and Packaging
Shipping and Logistics
Before we dive more into detail about the negative environmental impact of e-commerce packaging, it is also essential to note the mounting challenges with shipping and logistics, as this section of the industry plays an irreplaceable role in e-commerce.
E-commerce businesses need to take into consideration the following as the e-commerce market grows and expectations rise:
Environmental Impact of eCommerce Packaging
Yes, recycling standard e-commerce packaging is possible, but whether it’s happening is another question.
Statistics show that global consumption of paper and paperboard totalled 408 million tons in 2021, and is projected to reach 476 million tons by 2032. Packaging accounts for the majority of these millions of tons.
Along with this massive amount of consumption of paper resources, the e-commerce industry also accounted for approximately 2.1 billion pounds of plastic packaging in 2019, with a projected growth of 4.5 billion pounds by 2025.
Not only is there excessive consumption with e-commerce, packaging waste is often improperly disposed of and ends up in landfills or as litter on our streets or in the oceans.
Future Trends in eCommerce Packaging
Thus, with this major environmental issue on our doorstep, the future of e-commerce packaging is moving toward a balance of sustainability, personalization, and technology.
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More and more consumers are looking for companies that offer sustainable, personalized, and eco-friendly options, proving effective in shaping the future of the e-commerce landscape. Businesses are taking notice of this demand and are now adopting such practices to the benefit of everybody.
Sustainability and Eco-Friendliness
With sustainable sourcing and manufacturing, companies can begin by changing who they source raw materials for their packaging.
By carefully selecting suppliers who ethically source renewable resources and choosing manufacturers that strive to reduce waste, energy consumption and pollution, e-commerce businesses can take the first steps in creating a more eco-friendly initiative.
The following step businesses should take to keep up with the sustainability trend is to consider alternate materials in their packaging. Biodegradable and compostable materials are becoming more popular in e-commerce packaging and for a good reason.
Unlike plastic, biodegradable and compostable packaging materials are designed to break down without leaving any harmful compounds and can also break down anywhere between several days to a year.
Furthermore, by promoting and pushing these sustainable initiatives for your business, you are protecting the planet and reaching out to the rapidly growing “conscious consumer” base.
Personalization and Customization
Sustainability and eco-friendliness isn’t the only trend growing in the e-commerce market. The unboxing experience has become even more critical than ever before!
With an ever-growing e-commerce market and competitors vying for the consumer’s attention, e-commerce businesses must do more than offer a good product. Companies also have to engage with their audience, and one of the best ways to do that in online retail is to provide a personalized packaging experience.
Consider including custom inserts with your e-commerce package, like coupons, samples, or gifts in line with your targeted audience and the product they ordered. In such a saturated e-commerce landscape, personalization can mean the difference between buying from your brand or choosing another brand over yours.
Technology and Innovation
The final trend in the e-commerce market is new and innovative technology. Just under a decade ago, virtual and augmented reality were science fiction. That notion is no longer the case in the present day. Technology has been rapidly improving, and with innovations come new trends in all markets, including e-commerce.
Smart Packaging and Internet of Things Technology
Smart packaging is one such trend that has made the e-commerce industry more transparent and interactive. Smart packaging aims to enhance customer experience and make the challenges e-commerce businesses might encounter easier to manage.
In a similar vein, Internet of Things (IoT) technology also aims to lessen the challenges of doing business online. IoT technology refers to devices with software, sensors, and other technology able to interact with other devices over the Internet.
Devices with IoT applications and smart packaging help e-commerce companies with the following:
Smart packaging and IoT have significantly improved the experience for consumers and e-commerce businesses by creating more transparency and connecting us more than we ever have been connected before, but the innovation doesn’t end here!
Augmented and Virtual Reality
AR and VR are still relatively new technologies but have been progressing and evolving at a breathtaking pace. Just a couple of years ago, VR was limited to expensive headsets and shoddy interfaces, but no longer.
Now, there is no shortage of AR or VR applications that e-commerce businesses can use to enhance a customer’s online shopping experience! Some applications include the following:
The Future of E-Commerce is Technology and Innovation
With new technologies and innovations, the possibilities for growth in the e-commerce industry are endless. The world is changing, and e-commerce is at the forefront, so businesses need to adapt and evolve alongside the industry.
After all, evolution is adapting and changing to accommodate the environment. So, if the climate calls for sustainable packaging, personalized customer experiences, and integrated technology, then so be it!
To learn more about the future of e-commerce packaging, click here.