{"id":12006,"date":"2021-05-06T05:56:51","date_gmt":"2021-05-06T12:56:51","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=12006"},"modified":"2021-05-24T11:13:35","modified_gmt":"2021-05-24T18:13:35","slug":"package-design-affects-shipping-costs","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/shipping\/package-design-affects-shipping-costs\/","title":{"rendered":"How Package Design Affects Shipping Costs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019re looking to reduce your overall shipping costs, take a look at your packaging. It\u2019s often an overlooked place where you can see significant cost savings with minimal changes. The top things to consider include: product protection, branding and design, package size and weight.<\/span><\/p>\n<p><b>Product Protection\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The type of product you sell is very important when it comes to packaging. A camera will require much different packing materials than boxes of cereal. There are a few reasons this distinction is important:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Damages\u2014heavier materials, more dunnage, or special sized boxes may be needed for items that are more expensive. Any damage that is incurred along the shipping path may result in a returned item and disgruntled customers (who won\u2019t come back for more purchases).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Value\u2014the retail cost of goods should fall in line with the type of packing material used. A premium product will not seem as premium if it arrives in a flimsy shipping carton and is damaged at the time of delivery.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><b>But Isn\u2019t Branding More Important?\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A current trend, especially for CPG (consumer packaged goods), is emphasizing the unboxing experience to delight the end-customer. Sellers have particular desires when it comes to branding their packaging to stand out from the rest of the brown boxes on doorsteps.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe are seeing a lot of brands these days looking for lightweight, low cost packaging and shipping, however they may have designed a shipping carton that requires hand folding and manual insertion of sheets or filler. Consult with your 3PL; pick, pack and ship should flow through a warehouse, handling shipping cartons and dunnage can be automated to capitalize on accuracy, efficiency and potential cost savings.\u201d \u2014Victoria Maddux, VP of Sales at DCL Logistics<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having branded packaging is usually at complete odds with having a low cost shipping strategy. Why? Not only do branded materials cost more, they also incur costs at assembly, and shipping.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing companies often overlook are the costs for storage, assembly, packaging, and shipping. No matter if you outsource these or do them in-house, specialized packing materials will add the time, effort, and money needed. Custom boxes require special storage, they require manual folding, and hand taping. They may or may not fit within an automation system, like a tape machine\u2014meaning they\u2019ll require manual taping and stickering as well. Custom boxes and packaging can be especially cumbersome during promotional periods or peak shopping season and may inhibit your ability to get orders out quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While branding is important, the costs incurred may be larger than the importance of having specialized packaging. It\u2019s an important consideration to make at any stage of business.\u00a0<\/span><\/p>\n<p><b>Thinking Inside The Box\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The space within your box matters for a few very big reasons. DCL Logistics customer Willow recently <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/customers\/case-study\/willow\/\"><span style=\"font-weight: 400;\">reduced their shipping and labor costs by 50%<\/span><\/a><span style=\"font-weight: 400;\"> by re-thinking their product packaging strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dimensional weight.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A few years ago the small package carriers (UPS, FedEx, and USPS) changed their method for billing. They went from determining the cost of shipping a package from actual weight to <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/shipping\/dimensional-weight\/\"><span style=\"font-weight: 400;\">dimensional weight<\/span><\/a><span style=\"font-weight: 400;\">. It used to be that if you sent a huge box with only a toothbrush and a pair of socks (let\u2019s call that a 4oz package) the shipping cost would be based on the actual (4oz) weight. Now, the carrier will calculate the size of that huge box (let\u2019s call it 20in x 12in x 12in) and calculate the shipping cost based on the actual space that it takes up in the truck\u2014also known as the dimensional weight. Choosing boxes that are right sized for your products will eliminate extra fees due to dimensional weight rates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overpack.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your ideal scenario when packing multiple items in one box, is to <\/span><i><span style=\"font-weight: 400;\">overpack<\/span><\/i><span style=\"font-weight: 400;\"> the box in order to optimize for dimensional weight. If a box is overpacked (versus with only one product per box) this will also inform the type of packing materials you use. You may need a thicker box, stronger or wider tape to ensure your products arrive safely at their destination.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Damages.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your products aren\u2019t packaged correctly you may see your goods get damaged on the way to your end-customer. This will incur revenue loss, both from replacing damaged goods and potentially losing customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s important to provide a package that shows up in a quality state and keeps your product intact. It happens quite frequently that a seller may not think of changing their packaging if they are seeing returned and damaged items. Especially if they are set on using branded packaging.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you start to see damaged products and an uptick in returns items, it may be time to reassess your packing materials.\u00a0<\/span><\/p>\n<p><b>Working With a 3PL to Save on Freight\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A 3PL will usually make suggestions that get a seller&#8217;s freight costs down as low as possible. It all starts at onboarding, when a seller is starting to integrate with the 3PL. Both teams will go through the seller\u2019s item catalogue, determining the length, width, and volume of all SKUs and corresponding cartons that may be needed. The 3PL will then start to advise which materials and carrier might have the lowest cost option.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cCompanies shopping around for a new 3PL should really be asking about automation and systems. At DCL we have automation in five of our locations. In order to provide our customers better pricing we review cartons and pack out detail prior to shipping. We will recommend options, we work closely with carton manufacturers and have the ability to\u00a0 consult and recommend alternative options.\u201d \u2014Victoria Maddux, VP of Sales at DCL Logistics<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the right sized package is determined to optimize for the best freight rates, some sellers will still choose to use branded boxes. The seller may still pick and choose from the list of suggestions a 3PL makes\u2014weighing the costs of branding vs. low cost shipping.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are looking to decrease your shipping costs, take a good look at your packaging. There are likely places that you can make small alterations in order to save big. Sellers should also be open to asking their 3PL about in-house resources to improve packaging. At DCL we have a purchasing department\u2014they often give our customers ideas for great packaging design.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Onboarding with a new 3PL is one of the best times to revisit your packaging and shipping strategy for maximum efficiencies and lowest costs. At DCL Logistics it\u2019s one of the first things we talk with prospective clients about. We have been very successful at helping sellers reduce costs by making better packaging decisions.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/company\/get-started\/\"><span style=\"font-weight: 400;\">Drop us a line<\/span><\/a><span style=\"font-weight: 400;\"> if you are seeking 3PL support and an optimized packing material strategy.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re looking to reduce your overall shipping costs, take a look at your packaging. It\u2019s often an overlooked place where you can see significant cost savings with minimal changes. The top things to consider include: product protection, branding and design, package size and weight. Product Protection\u00a0 The type of product you sell is very [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"class_list":["post-12006","post","type-post","status-publish","format-standard","hentry","category-shipping"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Package Design Affects Shipping Costs - DCL Logistics<\/title>\n<meta name=\"description\" content=\"Top things to lower your shipping costs: product protection, branding attributions, package size and weight, overpack, dimensional weight.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Package Design Affects Shipping Costs - 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