40% of customers are more likely to buy from an online store due to better packaging

Are you selling the same product at the same price and maybe even cheaper than the competition, and yet your customers aren’t coming back to you? There could be several reasons. Maybe the competition has a more interesting website, better customer service, a better bonus program, or “just” better packaging.

Packaging – a factor that many eshops underestimate, yet often determines whether a customer will return to you or buy from a competitor next time. A lot has been written about the psychology and importance of packaging, but most of it has been written about the primary packaging. However, don’t think that just because you are selling “someone else’s” products that packaging marketing doesn’t apply to you.

We recently dealt with the experience of a colleague of ours who ordered a luxury chess set, which was delivered in a disproportionately large box filled with chocolate papers and flyers. My colleague had ordered a luxury product which was delivered to him wrapped in rubbish. Thank goodness he didn’t buy it as a gift and have it delivered directly to the recipient. Not surprisingly, next time he will shop at a competitor who sells the product perhaps a little more expensively, but delivers it in packaging that matches the contents. And that’s just so his shopping experience isn’t ruined by disappointment.

Already in 2014, Google saw a 57% increase in views of so-called unboxing videos. Unboxing videos are basically videos about unboxing products posted mostly by bloggers.

This type of videos is becoming increasingly popular in the UK and worldwide. Why? According to research by psychologists, the main reason is anticipation. The same expectation as if we were unwrapping a present. It doesn’t even matter that we ordered the goods ourselves and we know what the box contains. From the moment we receive the package in our hands to the moment we fully unwrap the product, we are full of expectations.

People even experience a certain level of anticipation even if they do not unwrap the package themselves and just watch it being unwrapped. How would a blogger unwrapping a package from you feel? How do you think your customers would look when they are unpacking your products?

According to a study by Dotcom Distribution, in 2016, up to 40% of customers said they would be more likely to buy from an online store that wrapped its products in gift or premium packaging. That represents an 11% increase from 2015, when only 29% of shoppers said this.

How does packaging affect customer psychology? According to the study:

• 68% of customers perceive the e-shop as more luxurious thanks to the quality packaging,
• 61% of customers experience more excitement when receiving a package,
• 44% of customers confirm the value of the product with quality packaging,
• 17% of customers are reassured by the packaging that this eshop is for people like them.

Of course, there is no product like a product

In general, it can be said that the quality of packaging matters for premium and luxury goods. Packaging matters least for products we buy for the home (cleaning products, etc.). But even for household products, packaging influences 25% of customers. For luxury goods, it’s up to 59%!

What is premium packaging?

Premium packaging should fulfil the following 3 characteristics: functionality, advertising, product presentation.

Functionality

Delivering damaged goods will definitely not put a smile on your customer’s face. On the contrary. And if you think that a quick and easy claim handling will save you, you are mistaken. Regaining the trust of a disappointed customer is much harder than winning a new customer. So don’t skimp on the quality of your packaging material. A product delivered in order is the alpha and omega.

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Packaging is one of the cheapest and easiest ways to build a brand. Boxes or adhesive tapes with your own logo and printing are a minimal cost yet very effective form of marketing communication. According to a study, up to 50% of customers are more likely to recommend an e-shop to their friends if the goods are delivered in branded packaging with the e-shop’s personalisation.

Product presentation

Secondary and tertiary packaging, i.e. the packaging in which shops pack products (e.g. cardboard box), should not only be practical. It has to attract attention just as much as the primary one. Create a sense of excitement and anticipation in your clients from the first moment they pick up your package. Differentiate yourself from the competition. Does your client want luxury? Imagination? Give them exactly what they want and what they’re paying for. Then he’ll be satisfied and keep coming back to you for that feeling.

Are you afraid of increased costs?

If you’re just starting your business, you must have limited capital and are trying to cut costs wherever you can. However, packaging is not the place to cut corners, especially if you’re still building your brand. You should think of it as an investment so you can make more money in the future.