Can your 3PL (really) handle custom packaging?
Ecommerce brands love the idea of offering the ultimate unboxing experience—not to mention receiving one. But what does custom packaging demand from your ecommerce fulfillment strategy?
It’s easy to get distracted by the frills and bows (sometimes literally) and forget about the complexity that custom packaging and kitting brings to your fulfillment operation. But for every memorable experience that lands on your customer’s doorstep, there’s likely a dozen or more pain points in the warehouse that need to be solved in order to make this experience possible. So, finding a 3PL who can support the demands of custom fulfillment is essential for branded packaging to bring your brand to life post-purchase.
In this blog, we’re going to dive into opportunities and challenges of custom packaging in ecommerce fulfillment, and the questions you should be asking to find a 3PL provider who can service these requirements and enable you to level up your brand and enhance customer experience further.
How custom packaging levels up your ecommerce brand
Differentiate your brand identity in a saturated market
It’s safe to say that almost every ecommerce order looks pretty much the same these days. When hundreds of Amazon shipping boxes are landing on consumer’s doorsteps every year, it’s hardly surprising that we barely remember what is in each package—let alone who the brand was that sent them.
But the ubiquity of plain shipping packaging opens up some great opportunities for enterprising ecommerce brands to stand out from the crowd. Just imagine a customer opening their front door to a brightly colored box stamped with your logo, or a mailer envelope embossed with a custom sticker. It’s these experiences that stick in your customer’s mind and make your brand stand out in a highly competitive space.
Multiply your marketing opportunities
The best marketing opportunities don’t exist prior to a purchase, but what comes after. When customers are looking to buy a product online, they are faced with a multitude of promotional messages and offers that can drown out even the strongest brand narratives. But what about post-purchase experience?
Many brands end up ghosting their customers the moment they are committed to a purchase, missing out on valuable opportunities to leverage those post-purchase communication channels to kickstart fresh sales cycles. Think product recommendations in a shipping confirmation email, offers via SMS —and of course, the arrival of package itself.
A customer order is the only marketing collateral that boasts an 100% open rate. Adding value-added extras to your retail packaging such as product samples, coupons, and freebies are guaranteed to receive engagement and entice existing customers to purchase again.
Build lasting customer loyalty post-purchase
Which delivery experience is more likely to strike a chord with customers? A plain cardboard box filled up bubble wrap and packing tape, or custom product packaging that contains a thoughtfully curated brand story?
As the demand with unique, memorable experiences in ecommerce continues to grow, a proper unboxing experience offers a powerful way for brands to stick in their customer’s minds and give them a reason to purchase again. Taking the time to curate an enjoyable experience is a clear signal that your business genuinely values each and every customer.
The challenges of custom packaging for ecommerce fulfillment
For all the great things that branded ecommerce packaging alone can achieve for your ecommerce business, there are some drawbacks that brands need to be aware of. After all, if it were easy, everyone would be doing it and there would be no competitive advantage to be had. So, how can custom packaging impact ecommerce fulfillment?
You cannot use FBA or WFS fulfillment services
One of the key drawbacks of custom printed boxes is that it does limited your outsourced fulfillment options. Neither Fulfilled By Amazon (FBA) or Walmart Fulfillment Services (WFS) allow brands using their fulfillment services to use branded packaging products, as well orders are fulfilled by their warehouses and using neither generic or Amazon/Walmart packaging. If your brand is using a hybrid fulfillment approach, you will have the option of using custom packaging with other third-party fulfillment providers. However, this does create a lack of consistent branding between channels, which can undermine the customer experience.
Storage costs
Depending on what custom packaging your business is using, you will need to factor the additional space required into your storage costs. While materials such as tissue paper or mailer envelopes can be easily folded and take up relatively little space, containers such as cardboard boxes, are bulky and will require somewhere to be stored in the warehouse while they are awaiting use in fulfillment. Depending on whether your business is using a private warehouse facility or a 3PL, this extra space will add to your fulfillment costs, unlike generic packaging which is being used by other warehouse clients (in the case of a multi-client facility).
Slowing down fulfillment
The more elaborate your unboxing experience is, the longer it’s going to take for warehouse operators to pack up each customer order and dispatch it for shipping. If your brand is trying to achieve rapid delivery times such as two-day or same-day delivery, custom packaging workflows can run counter to these efforts. Plus, these inefficiencies can result in bottlenecks in the fulfillment process, especially during sales peaks like the holiday season. This may require you to increase labor levels during peak periods in order to keep orders flowing, which means additional staff training and costs.
Blowing out your fulfillment costs
The more custom elements you add to the packing process, the more that cost per order (CPO) is going to climb. For example, if each customer order requires two sheets of tissue paper, a sticker, and two packaging inserts, it’s easy to see how your fulfillment costs can spiral. This is why it’s so important for ecommerce brands to do a careful analysis of their branded product packaging design to understand how much it’s adding to your overall costs. Understanding the Minimum Order Quantities (MOQ) of your suppliers and whether you can save money with bigger orders is also a key consideration – though this can be eroded by higher storage costs.
Restricting your choice of 3PL partners
Even when FBA and WFS are taken out of the equation, many ‘full-service’ 3PLs still struggle with the demands of value-added services like custom packaging. Implementing these workflows and staff training into the fulfillment process is complex and time-consuming for warehouses and opens up a lot of room of error, meaning that it’s easier for many providers to forgo it completely, especially if they don’t have access to the right expertise and technology to improve packaging solutions efficiency.
Questions to ask your 3PL about custom packaging
Do they offer the right value-added services?
Bringing branded packaging into your fulfillment process is about more than just the outer packaging itself. Adding custom elements brings demand a whole set of additional services that fall outside of the regular order fulfillment workflow. This includes kitting, subassembly, and inserts. These are not available at every third-party fulfillment provider, so it’s important to make sure that any potential 3PL has the right services to create the kind of unboxing experience you’re booking for. Finding out after you’ve signed a contract that certain services aren’t available comes a little too late for your customized packaging strategy.
Do they offer custom dunnage?
It’s not what packaging is used, but how an order is packaged that determines the quality of post-purchase experience. Your brand can go all-out on deluxe packaging, but if customer orders are packaged by your fulfillment partner without any finesse, leave lots of empty space for items to move around, or don’t consider the importance of product presentation in the box, then it’s more likely to result in an underwhelming experience for customers. Think broken items, cluttered packages, and poor presentation that leaves customers with a not-so-great impression of your brand. Ensuring that your 3PL offers dunnage and handling services ensures that every order lives up to its potential.
Can your 3PL receive/store packaging materials on your behalf?
Actually getting your packaging materials from from your supplier to your 3PL is a key aspect of custom fulfillment that ecommerce businesses need to consider. For example, if you can send replenishments of packaging directly to your fulfillment center, this will save valuable time and shipping costs compared to shipping custom boxes to your own offices and then onto your 3PL. There may be a limit to how much packaging your warehouse can hold at one time, so needs to be worked into your reorder points for fresh packaging.
How easily can you change/update your packaging SOP?
Will your packaging workflow be a ‘set and forget’ set up, or will your 3PL offer you the flexibility to update and change your SOP on the fly? This flexibility is important, as it allows your brand to maximize opportunities to keep the post-purchase experience fresh and exciting for customers. For example, you may want to sub in seasonal packaging designs during the holiday season, add different inserts for new marketing campaigns, or include freebies of new products. Knowing how much notice you need to give your warehouse team of these types of changes will determine will nimble your fulfillment operation is.
How ShippingTree handles custom e-commerce packaging
ShippingTree specializes in creating custom packaging solutions tailored to e-commerce retailers’ unique needs. From design to delivery, we ensure that every package is not only functional but also a reflection of your brand’s identity, enhancing the overall customer experience.
Custom packaging and fulfillment marketing
From eco-friendly packaging for environmentally conscious consumers to help with sourcing packaging materials, ShippingTree offers a range of packaging options that ecommerce brands can leverage to bolster their brand image. Make a lasting impression and encourage repeat purchases with marketing inserts, QR codes, custom printed tissue, and more—simply work with our fulfillment team to develop standard operating procedures so each box is packed with the utmost of care.
Safe, branded packaging for delicate products
If your exterior packaging is designed to be fun and inviting, make sure your interior packaging follows suit while keeping your products safe. Safety is paramount when it comes to packaging. At ShippingTree, we focus on creating designs that not only represent your brand but also ensure that your products reach customers in perfect condition. Proper cushioning, sturdy materials, and well-thought-out packing materials reduce the risk of damage.
Network of partners to source high-quality packaging
We collaborate with a vast network of suppliers to source premium packaging materials that meet your needs. Our team of experts will help you find the right packaging that aligns with your brand’s values, functionality, and aesthetics. Plus, our packaging design process is collaborative and tailored to your specific needs.
Ultimately, an elevated unboxing experience is more than a branded shipping box. Looking to revamp yours? Get in touch with ShippingTree today.
