The role of packaging in ecommerce

Published on Monday, Nov 16 2015 Around 15% of all UK retail purchases are made online. This will equate to a value of around £52.25 Billion worth of purchases in 2015 alone! This is big news for the packaging industry as consumer expectations change, packaging styles adapt and certain packaging material demands increase. It is important for anyone either within the packaging industry or involved in ecommerce sales to understand how this digital behaviour is affecting the way we package goods. The Psychology of Packaging While we have discussed the psychology of packaging before, the relevance and approach of psychologically appealing packaging changes when it comes to the online world. In brick and mortar stores, the products packaging is one of the most (if not the most) important factors for enticing potential buyers. The packaging needs to shout about the amazing benefits of the product, catch the consumers’ eye and persuade them to add the product to their shopping basket. It also needs to stand out against competitors which will be placed directly either side of it. In an online sense, packaging is much less important in the quest to encourage purchases. For starters, the consumer is in a completely different end of the purchase funnel. While in store shoppers may be in the awareness or consideration stage, online shoppers are already post purchase when they finally set eyes on their products packaging. This renders the ‘buy me’ messages on the packaging completely irrelevant and misplaced. It is much more appropriate for this packaging to have messages thanking the consumer for their purchase and offering them the chance to interact with the brand in post purchase ways. While there is no need to convince the consumer to buy the product, you still need to be aware that the packaging in which the product arrives to the consumers’ door is a representative of your brand and replicates the in store experience. For example, if the product is a luxury brand then a more sophisticated packaging may be required to keep it consistent with the in store experience. Functionality The next consideration for packaging of ecommerce goods is the functionality. The product is going to take a completely different journey with the consumer. Whilst in store purchases require a sturdier packaging to survive the journey home with the consumer as well as a functional way of carrying it such as handles, ecommerce purchases mean that the product itself makes no journey with the consumer at all as the first time they lay eyes on the product will be in their home. This means the packaging design doesn’t have to be as intricate as there is no transportation necessary. However, the product does still make a journey to the consumers’ home. The most important factor to consider for ecommerce purchased products is practicality. It doesn’t need to be aesthetically pleasing, it just needs to be practical, sturdy and to ensure the product doesn’t get damaged along the way. Ecommerce purchases raise the demand for cardboard boxes and soft filling such as bubble wrap. Saving money on the products packaging itself by cutting back on certain design elements makes the practical external packaging much more affordable. Customer Expectations Finally, you need to realise that consumers’ expectations of product packaging are very different in an ecommerce environment. Online consumers are first and foremost looking for an easier, faster, more efficient and cost friendly experience. This means that the importance of good looking packaging is very low on their list of priorities. They just want the best product at the best price. Ecommerce business’s should spend less resources on the products packaging and use those resources to ensure they can offer the best price, fastest delivery and most positive purchasing experience. Online shopping offers a huge opportunity to retailers when it comes to packaging. This is still a relatively new environment so it is a time to test new approaches and discover what works best for your audience. Earlier in 2015, Ecommerce giant Amazon worked with Universal Pictures and Illumination Entertainment to produce Amazon.com boxes with third party advertising on them. This was a breakthrough in packaging ingenuity and may pave the way for more collaborations between businesses in the future. This is an exciting time for packaging and if you want to share your ideas with us or need help with your packaging design, please feel free to contact us at any time.