Why Packaging is the Next Frontier For eCommerce Optimization
How might improving packaging operations aid in eCommerce optimization and help meet rising consumer demand? Come take a look at our article and find out!
The demand for eCommerce is growing fast, with consumers shopping online at a rapid rate. Many businesses have thus invested resources and time to optimize their websites in hopes of boosting conversions, lowering cart abandonment rates, and simplifying the ordering process for customers. These efforts not only promoted eCommerce growth but also helped increase sales during the pandemic. However, one vulnerability in the eCommerce sector that became more visible during the pandemic was packaging.
When demand for eCommerce services hit the roof during the initial phase of the pandemic, some packaging operations were unable to scale fast enough, causing a drop in performance. eCommerce has stabilized since then, but the pandemic appears to have permanently accelerated the transition to e-commerce. Therefore, brands must now adapt much more quickly to higher levels of demand to ensure that packaging does not hinder their growth.
Scaling Rapidly
Today, packaging operations cannot afford to postpone orders until the following day. Orders must be filled and packaged on the same day to meet customer demands and shorten delivery times. Multichannel retailers should be flexible enough to scale their eCommerce operations without compromising store fulfillment.
To achieve scalability with speed, a well-coordinated mix of technology, resource flexibility, and integrated inventory management is a must. One reason why some organizations did not scale during the heat of the pandemic was due to the management of labor. Still, companies like DHL Supply Chain managed to meet the unexpected demand in eCommerce packaging processes through recruiting programs and flexible resources.
Strengthening the Brand Experience
Brands should be able to boost or maintain brand experience for their eCommerce customers. Often, an eCommerce transaction alone may determine the experience a customer has with a specific brand. In this case, beyond the product itself, the packaging is the only tangible customer touchpoint. To adapt to this new shift, brands must reconsider their eCommerce packaging processes. For example, brands looking to reach environmentally aware customers should always use sustainable, eco-friendly packaging. Companies can also choose to redesign their packaging to offer an unboxing experience that strengthens the image of the brand while maximizing customer satisfaction.
Managing Expenses
Finally, eliminating inefficiencies in the system in order to increase productivity and reduce transportation costs as volume increases is crucial. Optimizing the size of packaging can minimize transportation costs and eliminate waste as well. According to DHL Supply Chain, 24% of an eCommerce package's volume is unoccupied space. eCommerce facilities should thus work on producing the right package for each product.
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