Those days are gone when packaging was seen as a layer to protect the products during transportation. Today, it is about combining functionality with aesthetics, sustainability, and innovation. Packaging in eCommerce creates a lasting impact and a memorable experience for customers while connecting them with brands and their perspectives.
In this blog, we will explore the world of eCommerce packaging while understanding its essential role, corrugated packaging, the current state of eCommerce, etc. Further, we will examine the environmental impact of eCommerce packaging and packaging material while highlighting futuristic trends in the eCommerce industry.
Sellers who aim to stay ahead in their game are focusing on adapting the best practices in packaging that are sustainable, innovative, efficient, and enhance customer satisfaction. Keep reading to navigate the eCommerce packaging and discover how it can work as a game changer for your business.
Defining eCommerce Packaging
eCommerce packaging refers to the packaging materials used to ship different products to customers after purchasing products online. It includes designing, producing, and using packaging materials to pack the products for delivery. It plays an important role in protecting the products during delivery and ensuring they reach the customers safely and in good condition. Other than protecting, packaging nowadays also focuses on providing a brand experience to customers.
The Role of Corrugated Packaging in eCommerce
Corrugated packaging is corrugated cardboard packaging that is recyclable, biodegradable, and made from renewable materials. The material is versatile, robust, and used for shipping and packaging. This packaging has fluted corrugated sheets between two flat linerboards, making it durable, strong, and flexible.
Corrugated packaging plays an important role in the eCommerce industry by protecting products during shipping. It is versatile, cost-effective, and durable, making it suitable for many roles. Some of the key roles and benefits of corrugated packaging include:
- Corrugated materials are comparatively inexpensive compared to other packaging materials, which makes them suitably cost-effective for the eCommerce industry.
- It can be easily customised in size and shape, along with logos, promotional content, branding, packaging, etc., to increase brand visibility and customer experience.
- Packaging materials are lightweight, which minimises shipping costs and makes them significant for businesses aiming to work on logistics.
- Corrugated packaging provides cushioning and absorbs any shock or resistance while protecting the products from any damage during transportation.
- It can handle the weight of other packages above it and can be stacked together.
- Most of the corrugated packaging materials are recyclable or biodegradable, which aligns with the eco-friendly and environmental-friendly approach of the eCommerce industry.
Current State of eCommerce Packaging
The global eCommerce packaging market size was approximately INR 4.11 trillion in 2023, which is expected to grow to INR 8.6 trillion in 2032. With the growing market, the needs and requirements of packaging are also increasing. The current state of eCommerce packaging is changing continuously, depending on the demands of customers, technological updates, sustainability issues, etc. Sellers are trying to keep up with the latest trends in the market to meet customer demands and expectations while making their business grow. You can understand the current state of eCommerce packaging in various ways, such as:
- Sustainability: The use of sustainable materials and packaging methods has increased continuously over the past five years. And as per the NIQ survey 2023, 92% of customers today choose products that have sustainable packaging, and one in every two customers is ready to pay extra to have products that claim sustainability.
- Technology: eCommerce packaging includes QR codes, NFC tags, barcodes, and other smart packaging technologies that make tracking and authentication of the packaging easier. eCommerce industries are also utilising automation in the packaging process, which increases the efficiency of businesses and reduces labour costs.
- Cost-effectiveness: Improved and optimised packaging solutions and designs, like lightweight packaging, suitable materials for packaging, tamper-proof material, etc., reduce shipping and packaging costs, which results in fewer returns.
Environmental Impact of eCommerce Packaging
The increase in eCommerce has led to eCommerce packaging and packaging waste, which raises multiple environmental concerns. As sellers, it is important to understand the ecological impact of packaging materials on the environment and how you can adopt more sustainable practices to cater to the environment. Some of the prominent environmental impacts of eCommerce packaging include:
- Decrease in resources: Packaging materials like plastic, paper, cardboard, etc., utilise a large amount of natural resources and the world's energy supply. Also, the continuous demand for paper packaging results in deforestation and increases carbon emissions.
- Carbon footprint: The production of packaging materials like plastics is energy-intensive and produces approximately 3.4% of the global greenhouse gas emissions throughout their cycle. For example, one ton of plastic packaging emits 2.5 tons of carbon dioxide while disrupting the balance of gases in the atmosphere.
- Challenges in recycling: The recycling rate of packaging materials could be much higher, including mixed-material packaging, plastic-coated packaging, etc. Only 9% of the plastic waste produced in the world has been recycled till now, and the rest ends up in landfills, contaminating the land and other resources.
- Waste production: As per Statista's 2019 statistics, the eCommerce plastic packaging waste was more than 1 billion kg worldwide, and it is expected to reach approximately 2.2 billion kg by 2025.
The environmental impact of eCommerce packaging is immense, but still, many sellers and businesses are hesitant to opt for sustainable and biodegradable packaging materials. As sellers, it is important to adopt sustainable packaging practices and prioritise sustainable packaging to reduce its environmental impacts.
Future of eCommerce Packaging
As eCommerce continues to grow, the world of packaging also grows. Sellers can stay ahead by adopting trends in eCommerce packaging to cater to customers while also prioritising efficiency in operations and sustainability. Some of the future trends that can transform the eCommerce packaging industry include:
- Sustainable packaging: Sustainability isn’t just a trend today but a movement. Consumers are aware of the environmental footprints of plastic packaging materials, and they want sellers and brands to be mindful of using biodegradable, recyclable, and reusable materials for packaging.
- Minimal packaging: Simple and minimal packaging designs are becoming popular for their practicality and aesthetics. Sellers using minimal packaging materials with clean and elegant packing designs are appreciated for their quality and sustainable approach.
- Tech packaging: Technology is now included in every part of our lives, and packaging is no different. Packaging materials will consist of RFID and NFC tags, allowing people to track packages, increase transparency, and reduce the losses of untracked or lost packages. Technology can also make packaging interactive, including QR codes incorporating additional product information, exclusive content, virtual try-ons, etc.
- Customisation: Customers like customised and personalised packaging experiences, which create a lasting impression on them. Including unique brand and personalised packaging elements enhances customers' unboxing experiences and connects them with the brand.
- Convenience: Convenience for customers is a priority for sellers nowadays. Easy-to-open packaging, resealing, and disposal of packaging materials enhance the customer experience and the sustainability and reusability of the packaging. Sellers also focus on reusable and resealable packaging for efficient returns for sellers and customers.
Conclusion
eCommerce packaging presents significant challenges and multiple opportunities for sellers to grow and differentiate themselves from others. Sellers who adapt and change with trends like minimalist packaging, sustainability, technological packaging, personalisation, etc., and meet customer expectations are the ones who are setting themselves apart from the crowd.
Promoting sustainable packaging is not an option now but a necessity for businesses and sellers. Customers demand eco-friendly and sustainable packaging solutions from brands to reduce their environmental impact. Enhancing recyclability, incorporating technological and smart packaging solutions, minimal designs, personalisation, etc., help customers strongly connect with brands.
The future of eCommerce packaging is more than just protecting products; it is also about creating meaningful, sustainable, and seamless customer experiences. By staying ahead of the trends, sellers can ensure customer expectations are met while having a competitive edge in the eCommerce market.