E-commercialization is driven by both market and consumer demands, influenced by globalization, tech-savvy consumers, improved technology, and company investments in online divisions.
Consumers now expect a seamless shopping experience. This trend has led to more frequent online shopping, providing online retailers with greater opportunities than ever before.
Many companies are adjusting to the recent increases in online sales by developing their digital presence and e-commerce services.
According to eMarketer, the process of digital transformation has been underway for most of 2020.
For instance, 51% of respondents increased their e-commerce investments in the past six months, and 64% have plans to invest in the next six months.
With numerous retailers focusing on e-commerce, retail is evolving into a digital-first market.
How E-commerce Business Optimize Packaging Performance
Ongoing assessment of packaging performance
E-commerce businesses optimize packaging performance by actively monitoring it over time.
Often, investments in packaging are compromised to save costs, leading to degraded packaging systems that fail to meet performance requirements.
To address this, businesses focus on optimizing the physical performance of packaging in three key areas.
Monitoring packaging performance regularly helps them identify weak points in the value chain, improve procedures, and foster collaboration with other actors involved in the value chain.
Selecting product-oriented packaging systems
Selecting product-specific packaging systems improves packaging performance and helps avoid using standard packaging solutions not designed for specific needs.
Over time, relying on standard packaging can lead to logistics and handling issues.
Businesses can enhance packaging performance by using a virtual pack-selector that takes into account performance, logistics, and handling.
This improvement approach necessitates a holistic perspective on packaging throughout the entire value chain.
Customized Solutions
E-commerce companies exhibit hesitancy when considering investments in customized solutions due to uncertainties surrounding the actual return on investment (ROI).
A matrix can be formulated in response to this challenge by drawing insights from research and sustainability studies.
This approach aims to offer tailored packaging solutions rather than standardizations.
This matrix aims to assist companies in making informed decisions about the appropriate packaging choices.
E-commerce Packaging Trends: Catering to Online Retail Demands
Top e-commerce packaging trends have emerged in response to the booming world of online retail.
These trends focus on innovative and sustainable packaging solutions, which not only optimize the customer experience but also minimize the environmental impact.
The e-commerce sector continues to evolve and adapt to the dynamic needs of online consumers.
Sustainable packaging - E-commerce retailers increasingly adopt eco-friendly packaging materials to reduce their carbon footprint and appeal to environmentally conscious consumers. These retailers use recycled materials, biodegradable, compostable options, and take measures to reduce packaging waste.
Smart packaging - E-commerce packaging is becoming smarter as technology advances, with the integration of QR codes and NFC tags to enable effortless tracking. This boosts customer engagement and provides product authentication.
Minimalism and efficiency - Online brands shift towards minimalistic packaging designs, employing fewer materials, and embracing reusable packaging to minimize waste and lower shipping packaging costs.
Protective packaging - Online retailers are adopting innovative protective packaging solutions, such as inflatable air cushions, foam inserts, and molded pulp packaging. This is to ensure secure product shipping and maintain product integrity.
Resealable packaging - Online companies are increasingly using resealable packaging to meet consumer demands for convenience. The goal is to boost customer satisfaction and encourage repeat purchases through this packaging design approach.
Multi-functional packaging - The adoption of multi-functional packaging is on the rise, serving various purposes like doubling as a reusable storage container or enabling easy returns.
Edible and water-soluble packaging - Retailers are investigating the use of edible and water-soluble packaging materials. This aims to reduce waste and actively contribute to a circular economy.
3D printing - Advancements in 3D printing have the potential to bring about revolutionary changes in the e-commerce packaging industry. This innovative technology allows businesses to create customized and precise packaging solutions on-demand.
Personalization and customization - Businesses now offer personalized and customized packaging solutions. They aim to leverage the advancement of digital printing technology to create unique customer experiences and strengthen brand recognition.
Subscription box packaging - E-commerce companies are responding to the growth of subscription box services by creating specialized and creative packaging designs for these recurring shipments, incorporating branded boxes, inserts, etc.
Unveiling Sustainability in E-commerce: The Ongoing Collaboration of Retailers and Consumers
Retailers and brands selling online face increasing expectations from customers for environmentally friendly and sustainable practices.
According to PFS' recent report titled "The Green Dilemma: The Disparity Between Consumer and Retailer Perceptions," retailers acknowledge feeling the pressure, with 60% stating they perceive themselves falling behind the competition in regards to sustainable operations.
Consumers look for retailers that match their values, with 32% prioritizing price. Economic challenges make it hard for retailers to prioritize eco-friendly practices while meeting the needs of cost-conscious shoppers, given the extra costs linked to sustainability.
Key research findings indicate that over half of surveyed consumers in the US and UK (61%) expect retailers to use sustainable packaging.
However, only 54% of retailers currently offer sustainable packaging options without additional charges.
Since 2020, 50% of retailers have experienced an increase in customer inquiries about sustainable products.
Consumers in both the US and UK show a strong interest in eco-conscious practices.
65% of UK shoppers expect sustainable packaging from retailers, while 56% in the US share the same expectation.
In the UK, 69% of consumers are willing to wait for items to be delivered in one package instead of multiple packages, and in the US, 62% express a similar willingness.
The Influence of E-commerce Packaging Trends on Customer Experience
Packaging significantly impacts the online purchase experience, going beyond the purchasing process to encompass the moment the consumer receives the product shipment.
Most respondents emphasize the package's condition upon arrival, commonly known as the "unboxing" experience, as the most influential factor affecting the customer's post-purchase experience.
Factors like easy package opening, secondary packaging content, cost-effective shipping, and instructions preservation also contribute to shaping the customer's experience. E-commerce ready packaging is essential in addressing these elements.
Seventy percent of the professionals believe that good packaging can create a memorable customer experience, while 71% agree that poor packaging can ruin the customer experience.
Moreover, two in three of the packaging professionals believe that e-commerce packaging must differ from store shelves.
Conclusion
Brands must be attentive to the changing consumer landscape and adjust their packaging models to cater to the evolving customer mindset and online purchasing needs.
Preparing for this ongoing shift is vital for success in this dynamic market, encompassing elements like sustainable packaging, functionality, and durability.
Brands should quickly adopt connected packaging applications and consumer device solutions, enhancing convenience for customers over time.
As we move from retail to online, future convenience might eliminate the selection and order process entirely. Prioritizing customer experience and loyalty now will cultivate enduring customer relationships.
E-commercialization is driven by both market and consumer demands, influenced by globalization, tech-savvy consumers, improved technology, and company investments in online divisions.
Sustainable packaging
Smart packaging
Minimalism and efficiency
Protective packaging
Resealable packaging
Multi-functional packaging - The adoption of multi-functional packaging is on the rise, serving various purposes like doubling as a reusable storage container or enabling easy returns.
Edible and water-soluble packaging
Packaging significantly impacts the online purchase experience, going beyond the purchasing process to encompass the moment the consumer receives the product shipment.
