With customer behavior and expectations changing, custom packaging is becoming popular among online shoppers. Learn how custom packaging can take your business higher.
The steady growth of eCommerce skyrocketed after the disruption of the global pandemic when more consumers adopted online shopping to follow safety measures and convenience. With global online sales expected to exceed $5.5 trillion in 2023, it will impact the demand for custom eCommerce packaging, especially in the corrugated packaging market.
Custom packaging is an attempt of eCommerce merchants to differentiate themselves in creating a memorable buying experience or maybe an unforgettable unboxing experience for their consumers. Apart from this, custom packaging can be a complete game-changer for SMBs when they establish their products in the market.
Importance of Customer Service
Customer service goes beyond attending to customer complaints and providing order fulfillment updates. Research by Hubspot says 93% of customers are expected to make a repeat purchase from a brand that offers excellent customer service. After all, outstanding customer service helps you improve customer retention, thus reducing churn and increasing repeat business. Also, repeat customers are valued more by brands as these customers are typically noted to spend 67% more than new customers.
Moreover, along with improving your repeat business, great customer service also helps you acquire new customers and earn their loyalty. Research at various times has shown that there are 60 to 70% chances of selling to repeat customers while there is only a 5 to 20% of probability of selling to new customers.
What is Custom Packaging
As the name suggests, custom packaging is a tailor-made, personalized or special package for a product that eCommerce merchants arrange for their consumers instead of the standard package for the same product. It makes the customers happy, especially if they order the product as a gift for their friends or family. The process of custom packaging completely transforms the standard package in terms of shape, size, color, material, design, texture, and other possible specifications.
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Custom packaging goes beyond its texture, material, or color for your consumers. It also represents your brand, basically your brand statement. It gives you an opportunity to connect with your customers and make them feel special. It helps you delight your customers and educate them about your company’s mission, values, and product benefits while engaging with them. After all, it also helps you create a lasting impression of your brand.
Here are some interesting facts about eCommerce packaging:
- Almost as high as 52% of online shoppers who receive products in custom packaging say they are more likely to return to that same company for future orders
- Many pieces of research and surveys found that consumers usually form their impression of a brand within 7 seconds. After that, it becomes difficult to change the impression. So, you can imagine the extent of the challenge.
- Another research says that almost as many as 10% of consumers consider a product’s packaging nearly as crucial as the brand itself, which is 12%.
- If an eCommerce merchant absorbs the cost of shipping and the packaging to offer free delivery, it typically has the potential to result in customers’ average order value becoming 30% higher.
Benefits of Custom Packaging
eCommerce merchants would not have been creating custom packages for their products, incurring additional costs if they didn’t see positive benefits for their brand. While planning for custom packaging, many eCommerce merchants, especially the smaller businesses, get overwhelmed with factors such as effort, cost, whether they need a minimum order quantity to offer custom packaging, and other factors.
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However, merchants have started acknowledging that customized packaging provides some crucial business benefits, the most significant of which is providing their customers with an exceptional shopping experience. Here are some of the benefits of customized, branded packaging for your eCommerce business:
- Brand Impression. It creates an impression of your brand for your customers, especially when they purchase for the first time. Imagine the customer’s delight when they receive the product in an amazing package they have never seen.
- Enhanced Customer Experience. Custom packaging helps you improve customer experience manifold. You can provide your customers with a unique unboxing experience that becomes memorable. It will make your brand memorable and likely convert them into loyal brand advocates.
- Key Differentiator. Custom packaging has the potential to set you apart from the competition. Special packaging for your product with your logo helps you immediately set your brand as the preferred one in your consumers’ minds, even if your products are similar.
- Repeat Customers. When customers are delighted and feel special with a unique unboxing experience, they may become repeat customers if your product is equally good.
- Product Protection. Sometimes, special, customized packaging also keeps your product safe and better protected from any likely damage at the time of logistics handling.
Though initially implementing these custom packaging may marginally increase the overall fulfillment costs per order, the benefits surpass the cost. After all, the additional exposure of the business logo through custom packaging can only be good to keep your customers reminded of your brand.
How 3PLs Help in Custom Packaging
Third-party Logistics (3PL) providers are experts in supply chain and logistics operations and thus can help you with custom packaging. 3PLs worldwide add value to eCommerce brands by providing them with professional supply chain and logistics operations so you can focus on your products and marketing.
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The professional 3PL providers have tie-ups with packaging services and can get professional packaging services for eCommerce merchants at a reasonable cost or club them as a part of their service. Moreover, 3PLs always ensure that the products are packaged properly for safe delivery. Here’s how 3PLs can help with packaging:
- Packaging. 3PLs ensure safe packaging, whether standard or customized so that customers receive the product in perfect condition.
- Co-packing. 3PLs put all the product elements into the final package to reach the customers.
- Repacking. 3PLs help you with repacking, which means that you can modify or reconfigure any element of your product on the move to fit better for consistent branding.
After all, 3PLs provide professional supply chain and logistics services with associations and tie-ups with related service providers. So, they are capable of better negotiation than an individual company and can ensure cost-effectiveness, offering customized packaging and delighting your customers.
Conclusion:
To sum up, there is a major shift in customer demand and expectations with the exponential rise of eCommerce. Also, online shoppers are typically digital-savvy consumers who make purchase decisions based on customer reviews. Hence, it becomes imperative to keep your customers happy to grow your business. Delighted customers are any merchant’s best bet to grow successfully. So, you need to find ways to provide an exceptional shopping experience to your customers through custom packaging.
So, go ahead and take that extra step for your customers and keep them happy!
About XPDEL:
XPDEL helps eCommerce brands accelerate their growth, empowering them with multi-channel fulfillment, whether shipping directly to consumers, delivering to businesses, or selling through retail stores. We are founded and operated by veterans with experience from Amazon, FedEx, UPS, JDA, Walmart, Target, and other leading companies in eCommerce and Retail. Guided by these experts, we provide customer experiences that help you grow your business.