Cartonization software solves the expensive problem of rising prices on packaging, shipping, and related tasks.
People don’t like excess packaging (nor do wallets)
Are you ever shopping and you ask:
- How much am I paying for air and excess packaging?’
- How much is the merchant paying for it?
- And how much of that ended up in your price?
Sustainable packaging matters – My case in point
I was in Homegoods today. While wrapping my new pots and pans in copious amounts of tissue paper, the clerk told me, “If you return any of this, please don’t bring back the paper.”
Customers and management have scolded her for her wasteful packing methods. Ecommerce packaging is no different; consumers want sustainable packaging options, which often come at a higher price, passed on to the consumer.
Ecommerce costs are off the rails
Eco-friendly packing is only a small part of the story. Why is ecommerce so expensive?
- Raw Material Prices: The cost of essential packing materials, such as corrugated cardboard (which spiked by 9% in 2023), plastic, and paper, has surged due to heightened demand.
- Balancing Affordable Packing with Protection: As ecommerce packaging thins out, damaged goods inevitably increase, necessitating replacements and lost customer goodwill. A balance must be struck between the cost to pack and the cost to replace. Everyone pays a little of that cost.
- Labor Shortages and Wage Hikes: Hourly earnings grew 6.3% YOY in the warehousing sector.
- Transportation Costs: Rising carrier fees, fuel prices, driver shortages, and general freight rate inflation have made delivering packages to customers more expensive. For example, average domestic parcel shipping rates in 2024 rose by 5.9%.
- Ecommerce Sustainability Pressures: A 2024 Shopify survey revealed that 72% of consumers are willing to pay more for sustainable packaging.
Given these profit-sapping conditions, ecommerce brands need a reprieve. Let’s discuss how cartonization software as part of your fulfillment platform can drive significant shipping efficiencies and ecommerce cost reductions.
Cartonization software + fulfillment all in one system
Cartonization software can be a standalone solution. However, you can save a great deal of time and money if your staff can see how to most efficiently pick, pack, and ship cartons or boxes directly within their WMS or order management system (OMS).
Integrated cartonization solutions automatically analyze items’ dimensions, weight, and fragility (or specialized handling needs like hazmat) and then recommend optimal pick/pack/ship methods to minimize wasted space and reduce the need for excess materials.
Go beyond packing efficiency
The biggest benefit of cartonization capabilities is having the full picture of your ecommerce order fulfillment costs all in one modern system.
Traditional cartonization solutions only look at whether the volume of the SKUs in a shipment is less than the volume of the boxes. While this can lead to a “good enough” answer, cost pressures demand a more holistic approach to trimming the fat.
By contrast, integrated, advanced cartonization software taps into AI-driven shipping capabilities in your fulfillment system to analyze many disparate factors that affect packaging efficiency, labor management costs, customer experiences, and, ultimately, your bottom line. For example:
- Where are the breakpoints in our carrier rate tables for each service type?
- Is splitting a shipment into multiple boxes cheaper for this shipment?
- Is it better to ship from the same or different facilities, partially ship from the DC; partially from the store, etc.?
- Does the labor cost suggest I should use fewer boxes?
- What’s the implication of the cost of ecommerce packaging materials?
Our work with Plant Therapy is a perfect example of the efficiencies and savings possible with Deposco’s cartonization solution–part of our Bright Shipping application.
Explore all our shipping management solutions
So, what other benefits can you expect from cartonization software?
Ship less air
Smart ecommerce packaging starts with optimal space usage. Cartonization software helps your team pack efficiently, so you can reduce wasted box space and shipping expenses.
Deposco’s cartonization solution adapts to various package sizes and shapes, handling the intricacies of different package dimensions faster and easier.
Fewer cartons, lower weights
Your business can reduce the number of cartons it needs to ship by using space and packaging materials better. Additionally, efficient packing lowers your ecommerce shipping costs, as carriers often charge based on package dimensions and weight. Many carriers will charge you for big boxes that don’t weigh anything because they still take up space on the truck.
Faster order processing and shipping times
Fewer and more compact packages can streamline the ecommerce shipping process. This results in faster order processing times and quicker customer delivery, enhancing your overall service levels.
Reduced labor costs
Automating the cartonization process reduces your staff’s need for manual calculations and decision-making. For example, automated box selection and packing instructions mean that your warehouse teams can pick and pack more orders in less time with fewer people.
Fewer pick/pack errors and returns
Cartonization software reduces the risk of human error in the ecommerce packing process by making consistent execution part of the process.
This ensures that items are packed correctly and securely, with the right amount of cushioning – but not too much (like my Homegoods clerk).
Because of this, our customers have reported less likelihood of damage during transit, resulting in fewer returns and associated costs, plus the obvious: happier customers.
Data-driven decisions
Warehouse management software like Deposco provides detailed warehouse analytics and KPI reporting on packing efficiency, material usage, and shipping costs. You can use this data to make informed decisions and continually improve pick, pack, and ship.
In addition, Deposco’s cartonization software automates packing tasks in printing B2B retail-compliant labeling, which slashes errors and chargebacks.
Tied into one WMS or OMS system, these insights open up a wide realm of other savings areas such as the prevention of overselling inventory.
Enhanced customer experiences
Efficient and accurate packaging improves on-time delivery and product protection, creating more repeat buyers who recommend your business to others.
As mentioned, you’ll always get the thumbs up from the rising number of customers who value eco-friendly packaging and responsible ESG practices in supply chain. Minimizing your use of excess packaging materials is also a cost savings for waste disposal and recycling!
