"The obvious cost of packaging is the box itself. But for most businesses, the box cost is only part of the picture. Dimensional weight charges from couriers mean that box volume directly affects freight cost."
"Void fill is the second hidden cost. Every oversized box needs filling, and that filling, whether it is tissue paper, bubble wrap, or crumpled kraft, has a purchase cost, a storage cost, and a labour cost for application."
"Right-sizing packaging, combined with appropriate internal fitments for fragile goods, reduces damage rates. Fewer damaged goods means fewer replacements, fewer customer service interactions, and fewer negative reviews."
"The UK's Extended Producer Responsibility regulations, which came into effect in 2024, have changed the economics of packaging for businesses above the threshold."
UK businesses often rely on a repetitive packaging strategy that prioritizes convenience over cost-effectiveness. The true costs of packaging extend beyond the box itself, including dimensional weight charges from couriers, which increase freight costs based on box volume. Additionally, void fill materials add further expenses. Returns due to damaged goods can be minimized through right-sized packaging, reducing overall costs. The introduction of Extended Producer Responsibility regulations in 2024 will further impact packaging economics for businesses above a certain threshold.
Read at Business Matters
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