{"id":61,"date":"2017-06-07T17:45:18","date_gmt":"2017-06-07T17:45:18","guid":{"rendered":"https:\/\/qapacklane-blog.packlane.com\/blog\/?p=61"},"modified":"2024-01-13T05:09:50","modified_gmt":"2024-01-13T05:09:50","slug":"custom-boxes-save-money","status":"publish","type":"post","link":"https:\/\/qapacklane-blog.packlane.com\/blog\/custom-boxes-save-money\/","title":{"rendered":"How Shipping with Custom-Sized Boxes Can Save Your Company Thousands of Dollars"},"content":{"rendered":"

\"How<\/p>\n

Are you paying good money to ship air and foam peanuts to your customers?<\/p>\n

Unless you\u2019re using custom-sized boxes, the unfortunate answer is a big fat yes.<\/p>\n

These days, custom packaging is so much more than a physical expression of your brand. Of course, great packaging can get customers excited about what\u2019s inside and create share-worthy unboxing experiences, but custom-sized packaging is also an opportunity to save you thousands of dollars in shipping fees.<\/p>\n

What\u2019s the Cost of NOT Using Custom-Sized Boxes?<\/strong><\/h2>\n

Now that most major carriers use \u2018dimensional weight<\/a>\u2019 (DIM) pricing, shipping fees are calculated based on package volume, rather than just weight. This prevents delivery trucks from filling up without maxing out their weight capacity (which reduces profit per truckload), but can make shipping more costly for retailers.<\/p>\n

DIM pricing means that anytime you use an oversized box (maybe because your product isn\u2019t a standard size), you could be paying a premium for that wasted space.<\/p>\n

If you\u2019ve noticed a major hike in shipping costs this year, you\u2019re not alone. Dimensional weight fees went up in January 2017 when most carriers reduced the DIM factor from 166 to 139. This might sound alright at first, but this change resulted in a 20% higher DIM weight.<\/p>\n

When the DIM factor went down, shipping costs went up \u2013 especially for retailers shipping light cargo in oversized boxes. Here\u2019s why:<\/p>\n

\"Dimensional<\/p>\n

As you can see, custom packaging is no longer just a nice way to upgrade your customer experience \u2013 it\u2019s a cost-saving measure with long-term benefits for your business.<\/p>\n

A Tale of Two Retailers<\/strong><\/h2>\n

Let\u2019s take a look at how e-commerce retailers can use custom-sized boxes can save on shipping.<\/p>\n

Meet Devin. He runs a successful Shopify store selling jewelry, watches, prints, and decal stickers. Business is booming, his customers are happy, and he\u2019s making around $5,000 in sales every month. Not bad, right?<\/p>\n

Since Devin\u2019s products are a range of different sizes, he uses a bigger box than necessary for most of his shipments. To prevent damage during delivery, he stuffs each box with foam peanuts. He knows it\u2019s not a perfect solution, but it does the trick.<\/p>\n

But something\u2019s wrong with this picture.<\/p>\n

Devin\u2019s average shipment weighs less than five pounds but, thanks to DIM pricing, his shipping costs are based on the size of his boxes. If Devin uses a 12\u201d x 12\u201d x 14\u201d box, his billable weight is nearly 15 pounds!<\/p>\n

Here\u2019s how the math works out:<\/p>\n

(12 x 12 x 14) \/ 139 = 14.5 pounds<\/p><\/blockquote>\n

Since DIM weight is rounded up to the nearest pound, Devin is billed as though he were shipping a fifteen-pound box instead of five.<\/p>\n

While a different retailer might get optimal value from a box this size, Devin is paying to ship 300% more volume than he needs, simply because he doesn\u2019t have custom-sized packaging.<\/p>\n

So, what does this actually cost the poor guy?<\/p>\n

Depending on where he\u2019s shipping to and from, Devin could be paying between $4 to $20 in extra fees per package. If he ships around 100 boxes every month, that adds up to $4,800 to $24,000 over the course of a year! We\u2019re not talking about small change here.<\/p>\n

On top of that, Devin\u2019s packaging costs are higher than necessary. Not only is he paying more for oversized boxes, he\u2019s also buying extra foam peanuts to fill up the space.<\/p>\n

\"Your<\/p>\n

Now, let\u2019s meet Laura. She runs a very similar e-commerce business. She sells all kinds of jewelry, her buyers leave positive reviews, and she\u2019s also shipping about $5,000 worth of products each month. But even though Laura earns the same revenue than Devin, she walks away from every sale with more cash in her pocket.<\/p>\n

That\u2019s because Laura delivers her jewelry in custom-sized boxes that are tailored to perfectly fit her shipping needs. She stills pays to deliver bracelets and earrings to her customers, but \u2013 unlike Devin \u2013 she doesn\u2019t pay extra to deliver foam peanuts.<\/p>\n

Since making the switch to custom packaging, Laura has saved an average of $12 in shipping costs per delivery. She also ships 100 units every month, which adds up to savings of $14,400 in one year.<\/p>\n

\"Two<\/strong><\/p>\n

Custom-Sized Packaging Means Safe Delivery + Happy Customers<\/strong><\/p>\n

Reduced shipping fees aren\u2019t the only reason to switch to custom packaging. There are also intrinsic benefits to custom boxes, such as memorability and brand recognition \u2013 but that\u2019s a topic for another day.<\/p>\n

Switching to custom packaging allows you to save money by keeping your products and reputation safe at every stage of delivery. Optimal sizing provides your business with three important benefits:<\/p>\n

1. Safe Passage in Stormy Weather<\/strong><\/p>\n

Custom-sized packaging can save you money by minimizing the risk of products getting damaged during delivery. Extra space in oversized boxes leaves rooms for your fragile goods to get jostled around on their journey, which means they might arrive in less than perfect condition. Not cool.<\/p>\n

On the other hand, custom-sized boxes keep your items secure, so you can feel confident that they\u2019ll reach their destination in one piece.<\/p>\n

2. Protection Against Unforeseen Costs<\/strong><\/p>\n

Another consideration is that quality custom-sized boxes prevent items from creating bulges in the packaging if they get shifted around or warped in transit. This can be an issue for retailers that try to squish larger items into the wrong size box. Not only does this put your items at risk, it could lead to sudden hikes in your shipping fees if they box shape changes due to damage or bulging.<\/p>\n

3. Bubble Wrap for Your Reputation<\/strong><\/p>\n

Your products aren\u2019t the only thing that might get damaged. Three out of five consumers feel their relationship with a retailer is negatively impacted when they receive a damaged order. And since at least one of those five customers would never buy from the retailer again, it\u2019s not a risk worth taking.<\/p>\n

“When designing product packaging, look for options that will allow your product to padded, securely packaged, and allow it to be shipped with minimal additional protection. Using smaller boxes will save money on each shipment, even if this means using heavier cardboard for the product box. ”<\/p>\n