Packaging: The impact on eCommerce and consumer satisfaction

Organisations are investing more in packaging to elevate the consumer experience. Shipments are protected with safe coverings, deliveries are traced through supply chains and there is a growing emphasis on sustainability. Ismail Sutaria, lead consultant, packaging and materials, Future Market Insights finds out…

06 Aug 2024 | By Ismail Sutaria

Ismail Sutaria, lead consultant, packaging and materials, Future Market Insights

Every business strives to provide optimum consumer comfort and satisfaction and drive consumer attention. Better product packaging can help fulfil this organisational goal. With the proliferation of various e-commerce platforms, the use of packaging methods and techniques has changed drastically. To meet changing consumer trends and demands, organisations are investing more in elevating packaging standards.

Lately, more attention has been given to sustainable packaging methods. Organisations have been aiming to embrace practices that reduce environmental hazards, helping firms meet sustainability goals. The balance between consumer satisfaction and enhanced e- commerce network can be achieved through better packaging solutions.

The dependence of operational efficiency on packaging:

Shipments in e-commerce businesses must be protected with extra covering as the probability of product damage during logistics is high. Product handling is a key aspect of logistics to ensure undamaged product delivery.

The packaging material used determines the total volume of the product to be shipped. It should be designed in a manner that the weight of the shipment does not exceed the permissible limit and adequate protection is ensured. Wrapping products in bubble paper can cater to this demand. 

Standardisation of packaging material proves to be crucial in terms of reducing inventory size. Retrieval of stored goods also becomes simplified, saving time and costs. This helps promote better circulation through e-commerce distribution channels.

Packaging and supply chains: How are they related?

Transporting and maintaining the effective circulation of goods through supply chains is crucial. Goods can be monitored in real time detailing their status in inventory as well as supply chains.

Packaging can leverage product segregation in inventory elevating shipment efficiency. Firms like Alibaba, Amazon, have been emphasising upon the said practice, which deliver desired results.

Organisations focus on meeting legal structures and policies while trading across borders. Meeting international packaging standards can curb the time required to pass the customs check. 

Smart packaging: The necessity of the contemporary world

Growth opportunities for the worldwide smart packaging market have increased due to the enhancement of supply chains. The use of cutting-edge technologies like AI and IoT enhance product tracking and security. Customers can get a precise idea about the shipment progress along supply chains.

Manufacturers also rely on AR and VR to provide an immersive experience to customers, elevating brand awareness.

Features like temperature control and pressure regulation can be integrated into the packaging to enhance the overall shelf life of the products, increasing customer loyalty.

Sustainability: An inevitable driver

Pertaining to adherence to environmental standards, manufacturers emphasise offering compostable packaging solutions. This trend is creating lucrative growth prospects for the global sustainable packaging market. 

Large scale eCommerce firms are focusing on initiatives like green logistics, climate pledge-friendly, etc. which are likely to help firms curb carbon footprints.

Waste reduction, pollution control, achieving net zero emissions, etc. are key objectives for organisations. E-commerce businesses are drifting away from plastic packaging solutions due to a sharp change in consumer trends, wherein consumers are inclined toward biodegradable packaging solutions.

Alternative packaging solutions offered by e-commerce businesses not only help organisations meet sustainable objectives but also leverage better brand image. Spurring innovations are allowing packaging solution providers to come up with solutions involving corrugated box packaging and renewable packaging. 

How packaging affects brand perception:

Personalised packaging is another trend expected to gain momentum as it helps deliver exclusive experiences to consumers. It helps products and the organisation connect emotionally with customers, creating a great brand image. 

Customer loyalty and the importance of packaging:

Unboxing the product is also another experience worth cherishing. This factor can be tapped  and capitalised upon.

Proper packaging can create excitement among consumers for the product. Owing to this experience, customer loyalty can be enhanced. Minimalist design and high-quality materials are seen to govern the packaging solution sector.

Easy-to-use and resealable packaging solutions can bridge the gap between the organisation and the customer. Simplistic design of packaging solutions can help customers engage with the brand more effectively. Owing to such differentiators, key eCommerce firms can attract more consumers. 

Conclusion

Owing to changing consumer perspectives, organisations have been focusing on the development of product packaging and investing more in eco-friendly and sustainable packaging solutions.

With better packaging solutions, a product can be easily traced within the supply chain increasing transparency in operations. This relationship between effective packaging and better supply chains can give a sustainable edge to the organisation, especially in the e-commerce distribution channel segment.

Smart packaging solutions are emerging as a key solution. With the integration of such features into the packaging of a product, customers tend to look at the brand from a different lens, elevating the value of the company in the landscape.

The subsequent effect of favourable brand perception raises customer loyalty, letting every brand come closer to their goal.

Latest Poll

What is the point of focus for the packaging industry, currently?

Results

What is the point of focus for the packaging industry, currently?

Margins

 

18.92%

Reverse auctions

 

29.73%

Safety norms

 

27.03%

Wastage

 

24.32%

Total Votes : 37

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