Home e-Commerce 5 Ways Small Businesses Can Reduce Packaging Costs

5 Ways Small Businesses Can Reduce Packaging Costs

Reduce packaging cost

Running a small business is always challenging. In order to make a good profit, you need to find ways to reduce various costs, especially the packaging costs.

Packaging is an important part of any product-based business and you have to spend a significant amount of money for attractive, distinctive and reliable packaging of your products.

But there are ways you can save good money from the packaging of your products. We made a little research and figured out how some of the really successful small businesses are saving costs when it comes to product packaging.

Here we have 5 useful and amazing ways you can save big and reduce the overall packaging costs of your business:

1. Outsource Packages

Making packages of your product can sometimes be costlier than just buying it from a packaging supplier. So, before you buy all the packaging-related machinery, tools, and hire workers to make those packaging, look out for various packaging suppliers around your locality and see if you can get any cost advantage by simply making a deal with them.

Look for a supplier that allows you full customization for your packaging and provides instant quoting to let you keep track of the cost. Customized packaging offers many benefits to businesses. For one, you have full control of your packaging design and materials. You can also choose the exact size of boxes or packaging that you need, which will cut down shipping costs later and offer better protection to the product contained inside. Most importantly, customized packaging is a powerful e-commerce marketing tool that can help attract customers and generate sales.

Chances are, packaging suppliers will be able to offer you very affordable prices. In order to make them say, Yes pretty fast, you can make them an offer to become your packaging supplier for a definite period, say 5 or 10 years.

Outsourcing your packaging is a perfect option when your packaging requirement is not that big. But when you slowly move to large-scale production, outsourcing might not be the most ideal option. As you work on growing your business, learn to save costs by outsourcing your packaging.


2. Buy Packaging Materials In Bulk

One of the things that differentiate many self-made billionaires from an average citizen is that they are quick to buy in bulk whatever they use consistently while poor people prefer to buy them daily.

In an interview with Forbes Magazine, billionaire entrepreneur, Mark Cuban said, “I look at my annual budgets for everything and anything, and I look to see where I can save the most money on those items. Saving 30% to 50% buying in bulk – replenishable items from toothpaste to soup, or whatever I use a lot of – is the best-guaranteed return on investment you can get anywhere.”

Buying in bulk is always a great way to have economies of scale. Contact various packaging material suppliers and know their best rates for various bulk purchases. They can design cost-effective custom box packaging for your products and help you improve your brand appeal before your customers.

Most of the time, you will get a notable difference between the prices of small purchases and bulk purchases. The same thing applies if you want to run a successful e-commerce business that makes a truckload of money.

3. Get Rid of Unnecessary Layering

Packaging design is an important part of cost-effective packaging. If the packaging is already costing a lot, chances are your product’s packaging has one or more unnecessary layering. So, consider redesigning your packaging with the intention to remove unnecessary layering.

Getting rid of unnecessary layering is one of the modern packaging improvement ideas used by most manufacturing industries.

Here are the basic factors considered when calculating the cost of packaging.

  • Structural Design
  • Graphic Design
  • Custom Packaging Manufacturing
  • Packaging Supplies and Void Fill
  • Shipping

4. Adopt Flexible Packaging

How to reduce packaging costs

Flexible product packaging is lightweight, easy to store and carry, environmentally friendly, attractive, and most importantly cost-effective.

Especially if you run a food product-related business, flexible packaging is by far the best option for you. Visit any nearby departmental store, you will find so many products packaged with flexible packaging.

You can simply contact one of the top flexible packaging providers around and make a deal with them for a regular supply of packages for your products.

If your business is getting bigger every day, you can produce flexible packages in your factory as well. Either way, you can save big by adopting flexible packaging.


5. Looks For Ways To Reduce Wastage

Sometimes wastage accounts for a lion’s share of packaging costs. If that is the case with your business, you need to identify the key reasons the waste is being generated.

Once you know the main reason behind the generation of wastage, you can find ways to get rid of that. It may take a while but once you are successfully able to reduce or eliminate wastage in packaging production, you will have a significant cost saving from the packaging.

These are some effective ways you can reduce packaging costs. So, try applying them to your business and make higher profits. If your startup dream team considers the best product packaging method, you are going to save costs.

How Do You Package Homemade Chocolates?

Giving your homemade chocolate the best packaging will not only guarantee its durability but also increase your profit. By using the best chocolate bags small businesses can save costs and improve their profit. 

The best form of packaging for chocolates is through the use of a plastic wrap. This will help to keep the container in perfect shape and condition while you ship it. You should as well seal the chocolates as tightly as possible to keep the content secure.

How Can We Improve the Packaging Process?

Here is the step-by-step guide on how you can improve your packaging process and efficiency without breaking the bank:

Plan Your Packaging Design from the Beginning

The earlier you decide on the best packaging design for your new product, the more appealing it will be to your customers. However, it won’t be fair on you to have an acceptable packaging while running at loss. This is why planning your packaging design from the beginning will help you factor in the cost in the price of your product.

Gather as Much Data as Possible

Customers aren’t necessarily looking for something that is better than what they already have. Instead, they are looking for something new and different. To differentiate your brand from those of your competitors, you will need to gather as much data as you can.

How are your competitors packaging their own products? What’s unique about their packaging? What’s the cost of their packaging? Who designs their packaging? And can you get something more outstanding and cost-effective? These are some questions you need to ask when gathering data that will help you improve your packaging process and efficiency.

Communicate Performance Metrics To Your Team

Now that you’ve gotten good and affordable packaging for your product, it’s time to communicate the performance metrics to your team. They need to know the impact your new product design and packaging have on your sales. Have your sales skyrocketed or there’s a decline? How did the market receive the new product packaging? Your team needs to know.

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Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - t.me/yourfirst1000 | Email: [email protected]


  1. Hello Emenike,

    Great tips over here 🙂

    Indeed packaging requires some investments, sometimes big too. Sometimes people need to apply extra packaging materials
    for the little amount of goods they need to deliver to their customers.

    Buying packaging materials in bulk is a good thing. It can help us to cut down the extra cost for us.
    These are some indeed great tips to reduce the package costing.

    Thanks for the share.


  2. Hey Emenike
    It’s great post dear, i really impress to read it about small business reduce packaging cost
    i appreciate your effort for explain in good way
    Thank you for sharing


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