Stay one step ahead of your competitors with the right packaging
5min read
20/11/2019
2020 was the year we embraced the e-shop en masse. By corona, then, we were forced to shop from our living rooms more often. The e-commerce sector grew and prospered more than ever. And that growth was accompanied by increasing competitiveness for the greenest online turf. E-shops are increasingly differentiating themselves from each other by investing in the ‘physical relationship’ with their customers. And in this, packaging clearly excels.
Packaging generally represents a small share of your logistics budget. The biggest bites are gobbled up by transport costs and warehouse management. In this article, we aim to show that packaging has a bigger impact on your online competitiveness than most think.
E-commerce: a market in flux
In 2019, the Dutch e-commerce market was worth an estimated €25.8 billion. Research shows that 96% of all Dutch people (over 15 years old) buy online. The strongest growing market segments are food/near-food (+24%), shoes/lifestyle (+19%) and household electronics (+16%).1
During the corona-lockdowns, we saw a sharp drop in web sales of services such as package holidays and tickets. That loss was then offset online by the big boost in product purchases (DYI, sporting goods, home & living, etc.). Since corona, e-shops play a more vital role in the Dutch economy than ever before.2 For a lot of e-shops, up to 80% of the marketing budget flows to digital platforms such as Google, Facebook and Instagram. Moreover, the fees charged by these platforms increase year after year. As a result, it is becoming increasingly expensive to reach and win over new customers online. The chart below shows the share of social media spending in the total marketing budget (from 2009 to 2018).3
Below, we go through three areas you can use packaging to improve your competitiveness. We focus on product protection, customer loyalty and transport costs. Suppose you bought something online last night. Today, that package is delivered. But… upon receipt, the box is riddled with dented corners and tears. A real nightmare for many online shoppers. Let’s face it: damaged packages are bad for your brand image!4 Research shows that 73% of consumers will not order online again if their parcel is damaged – regardless of whether the goods ordered are intact or not (Package Insight). To avoid this kind of situation, it’s best to choose a box with an appropriate carton thickness. A strong box significantly reduces the risk of damage. The table below shows you which cardboard thickness is suitable for your shipment. Consumers share their entire lives on social media… and that includes their experiences with their favourite e-shop. For online shoppers, packaging is often the only physical contact they have with a webshop. To leave a lasting impression with the customer, it is therefore important to go for a personal approach (e.g. address your customer by his/her first name). The average consumer attaches great value to this. Moreover, he/she will be more inclined to order again afterwards. Personalised packaging makes it easier to bind existing customers to your brand. If those customers then also share their unboxing experiences on social media, that’s a nice bonus. Free advertising! Ideal right? Read more: what are the benefits of personalised packaging?
Through your packaging, you can reduce your transport costs with a few simple interventions – without having to affect the quality of your box. Two improvements are possible. Improvement 1: ship cheaper by weight of your padding material customisation. Choose air cushions or bubble wrap, for example. These consist of as much as 99% pure air. And what is lighter than air? Read all about the advantages of air film here. By the way, for a completely green approach, there are films made from renewable resources, such as potato starch. Improvement 2: ship cheaper by size of your package adjustment. This can be done, for example, by choosing a variable-height box. RAJA’s search function below also allows you to choose from 1,250 sizes of boxes, perfectly tailored to your product. Want to bet that your perfect box is among them? Sources:
Conclusion: the digital market is becoming more and more saturated. As an e-shop, you will therefore have to differentiate yourself in other areas. In doing so, have you thought about something from the physical world, such as packaging? Boxes, shipping bags, padding… yes, even tapes and labels. They all determine the competitiveness of your e-shop.How packaging gives your e-shop a competitive edge
► 1. Packaging = protectors of your products
► 2. Packaging = Instagram stars in the making
► 3. Smart packaging = save on your transport costs
Conclusion: the closer the packaging fits around your product, the less padding material you need to use and the lighter your package will be. This way, you ship cheaper and more environmentally friendly.
1 www.ecommercenews.nl/ecommerce-in-nederland-e258-miljard-waard/
2www.thuiswinkel.org/nieuws/452 1/nederlandse-online-consumentenbestedingen-stijgen-in-q2-met-12-naar-6-36-miljard/
3 www.cmosurvey.org/2018/07/social-media-spending-use-and-distraction/
4 www.shorr.com/packaging-news/2015-03/costs-and-benefits-custom-packaging-ecommerce/
Attachments
