Packaging Tips for e-Fulfillment

The importance of packaging in the e-commerce order fulfillment process is often undervalued or overlooked. Many online merchants consider packaging to be a necessary evil and seek to minimize their expense, disregarding the implications of an improperly packaged order.

Besides the cost of the packaging materials themselves, there are numerous other considerations surrounding your product packaging that should be understood. You should always use the right size packaging, lightweight yet sturdy and avoid overpackaging. Here are a few tips to help you with your e-fulfillment packaging.

Right Size

Your products should be packaged in the best sized box. If it is too large, it may be costing you more in protective filler and in dimensional shipping charges. Unless properly protected, products packed loosely in oversized boxes are susceptible to damage. If the box is too small, you also face the risk of the product being damaged. Always choose the right sized packaging for your products. It will save you money.

Lightweight

Lightweight packaging can save a significant amount of money in shipping cost. Shipping boxes that are too large for your product not only adds weight due to the excess box size, but also the weight of the protective filler as well. Depending on your product, it may be possible to choose lightweight filler materials such as air pockets, bubble wrap or biodegradable packing peanuts.

Sturdy and Strong

When you have chosen the right sized box and have selected the right lightweight filler materials, you also need to ensure that your package will hold up to the rigors of the transportation method you have chosen while enroute to your customer. Does your packaging need to hold up for a local delivery or does it need to withstand multiple points of contact as it moves across the country? Your fulfillment partner or packaging supplier can assist in the selection of appropriately sturdy shipping materials, designed to withstand the demands of handling and transportation.

Avoid Overpackaging

Products sold online do not typically require the same secure, theft-proof packaging common in a bricks and mortar retail environment. So don’t use that type of packaging. Not only does it add unnecessary cost, consumers today are well aware of the environmental impact of overpackaging and demand better from their vendors. Show your customer you care about them and the environment and avoid excess packaging whenever possible.

Returnable

If you accept product returns, ensure your package is return friendly. Some merchants use one-time, single use packaging that is difficult to open without damage, making it difficult to use for a product return. This does not add any value for your customer and may deter future purchases.

Think About the Customer

The unboxing of their order is a very important part of the customer experience and online merchants should always try to make it memorable for their customers. After all, the goal is to have this customer return to your online store and purchase again. If the unboxing experience is positive, unique and memorable, your customer may share with their circle of friends, leading to potential new customers. So how do you do this? There are several things you can do, including: use custom, stand-out packaging; present your product in a great way when the box is opened; insert a discount coupon; include a free sample; a thank you note. Creating a positive and memorable unboxing experience creates happy, repeat customers.

Kitpak Fulfillment is a leading Winnipeg based e-commerce fulfillment partner for online merchants. Kitpak can help you streamline your e-fulfillment operations to save time and money. CONTACT US or REQUEST a QUOTE today.

Pricing Strategies to Get More Sales

When you launch your online store, how to price your products is an important consideration. You will want to research your competition to understand their market positioning and pricing and then decide how to position your products relative to your competition. Pricing must be set high enough to cover your costs and provide an acceptable profit margin, however it cannot exceed what the market will bear.

Is there anything an online merchant can do with pricing to help increase sales? Of course! There are numerous effective pricing strategies that savvy merchants employ to increase sales. Here are a few worth considering.

Loss Leader

This strategy seeks to attract shoppers to an online store where the merchant is offering deeply discounted pricing on a popular item (the Loss Leader). Once the shopper is in the store and engaged with the content, the merchant has numerous opportunities to promote other, higher-priced products to the shopper.

For example, if the Loss Leader is a flashlight, perhaps high margin batteries would be a good related offer. If the Loss Leader is a popular camera model, present the buyer with higher margin items related to the camera such as a memory card, spare batteries, a camera case, a tripod and the list goes on.

Bundle Pricing

Bundle pricing is where a merchant will offer reduced pricing for a predetermined bundle of products that would otherwise cost much more if purchased separately. This tactic stimulates the buyer to purchase more than originally intended in order to take advantage of the Bundle Pricing cost savings.

For example, if the merchant is selling cameras, the Bundle Pricing deal could also include a camera lens, a case and a memory card. Another example could target a desktop printer and the Bundle Pricing could include related products such as an extended warranty, spare toner and/or a case of paper. Of course, the cost savings of the offer must generate enough value for the buyer. It is unlikely that a buyer will increase their order by $100 in order to achieve a $2 savings.

Bundle pricing can be effective for selling off slow moving stock.

Version Pricing

Version Pricing is where a merchant will create multiple versions of a product in order to appeal to a broader segment of the market. This strategy is common practice in the photography market where merchants make available various camera models, each appealing to a different market segment. This may include an entry level model with less features and lower resolution, a more feature laden model targeted at the photography enthusiast and a high resolution, feature laden camera targeted at the semi-pro or professional market segment. Many products can be adapted to Version Pricing… can yours?

Volume Discounts

The Volume Discount pricing strategy is used to motivate buyers to increase the amount they purchase. Buy more and get a larger discount. Things are cheaper by the dozen! Using Volume Discount pricing allows consumers to save money by spending more. It’s a win for both the buyer and the merchant.

Volume Discount pricing is an effective strategy for selling off excess inventory.

Kitpak Fulfillment is a leading Winnipeg fulfillment company offering a broad range of e-commerce fulfillment services to offline and online merchants.

To learn more about how Kitpak can help streamline your fulfillment process and save you money, REQUEST a QUOTE or CONTACT US today!

Monthly Archives: August 2022