E-commerce retail’s impact on the packaging industry
E-commerce retail has a footprint throughout a number of industries in the world. Here’s how it’s impacting the packaging industry.
In our lifetime, corrugated packaging has always been around. Specifically, the first corrugated box was patented and used to ship back in 1871. Thanks to technological advances over the past few decades, it’s becoming a larger part of our life. And as e-commerce retail continues expanding, it won’t be going anywhere anytime soon.
The want and need for more ways to shop online continues to grow. Companies like Amazon have turned the industry upside down, making online shopping the preference for many consumers worldwide. At the same time, big-box stores like WalMart and Target have jumped on board, and they’ve made a conscious effort to push more products online.
You’ll continue to see more-and-more companies jump on board. How many, however, is the question. According to The Statistics Portal, the economical impact of e-commerce retail could reach as high as $735 billion by the year 2023. In 2018 that number hovered just over $504 billion. That’s a 45% increase over a five-year span.
As more people purchase online, companies must amend their original shipping process. From packaging reliability to the customer experience, branding and more, e-commerce retail provides companies with a new outlet to not only brand themselves but increase customer loyalty.
Shipping products to the customer
Packaging has always played a part in retail. It just hasn’t always played this large of a part in the e-commerce realm.
What’s one of the biggest concerns we have as consumers whilst shopping online? Getting the product to our door safely. Few things can frustrate a consumer more than opening the package to find their product’s been broken throughout the shipping process.
Many hands touch a package from the moment it’s loaded for shipping to the second the delivery driver places it on your doorstep. It’s important that a company uses corrugated packaging strong enough to withstand the shipping process.
Up to 30% of products ordered online are returned. Of those returns, 20% of them are due to damaged product, 22% because the product looks different than originally perceived, 23% because it’s the wrong item, and 35% were for other reasons.
Do you currently have packaging suited for easy returns? If you don’t, you need it. 92% of those consumers will likely shop with you again if you make the return process easy.
Having a package that’s reliable isn’t a luxury for the consumer, it’s a right. Additionally, companies have a right to use this process as a traveling billboard, so to speak. What are you doing to make the e-commerce retail experience better for your customers?