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Path: Sourcing News & Advice
>> Smart
Sourcing >> Packaging: Think outside (and
inside) the box

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Packaging: Think outside (and inside) the box

Posted: November 08, 2016

By John Edmonds

Ever
seen a kid open their first gift, and play with the gift wrap instead of the
gift? Let’s get you as excited about packaging. Sure protecting your shipment is
prudent (and boring) but did you know that great packaging can slash costs?
Suddenly not so boring, right?

Protect
Against Damage And Theft

Safety
comes first. So make sure that your packaging is providing the protection
required for your shipment. Fragile shipments should be double-boxed. Having two
boxes not only adds an extra layer of cushion from…rugged..handling but it also
reduces the chances of the product moving when the box is jostled. Wrapping the
first box with bubble wrap and peanuts will secure it even further (but watch
out, some fulfillment centers, like Amazon FBA warehouses, won’t let you use
peanuts).

Unless
you have a full container load, your goods will be consolidated with other
shipments in a container. Same goes for planes: unless you are Apple chartering entire cargo planes, your
goods will be consolidated with other shipments in the hold. With all those
shipments huddled together, it’s easy for packages to get mixed up at unloading
or . So make sure that your packages are clearly marked. But not too
identifiable. If you are shipping something attractive to thieves, you should
remove any brand identification, or any other labeling that might spill the
beans (take a note from this bike company).

If
You Now Think Packaging Is Exciting, Wait Until You Try Instant Freight Quoting
On The Freightos Marketplace!

Cost-Effective
Product Packaging

You’re
probably catching on that over-packaging will increase freight costs, and
reducing packaging is likely worth the chance of a marginal increase in damages.
So time to take it to the next step, because some radical thinking will be
required.

Have
you ever thought whether you are unnecessarily paying extra freight because of
the wasted space caused by the standard packaging that your product comes in?
This is something to consider carefully. It isn’t as simple as changing the
cardboard box, or the packing material. Your supplier will likely need to make
changes to the machinery and make special production runs. Expect that your
supplier may not initially be receptive, but if your product is selling like
hotcakes, you should do the math. Chances are that you will quickly recoup any
set-up costs, and be saving a mint. Amazon has mastered this (and even passes on savings to
customers).

Cost-Effective
Packaging For Ocean Freight

Cargo
ships have a lot more space than airplane. But have you seen any of those horror
pics on the internet showing container ships buckling or lurching because of
weight? Well, that’s why weight more than volume drives ocean freight costs.
Just as with freight, you still want to reduce gaps between packaged products,
and not go overboard (pun intended) on packaging material, but you probably
won’t get the same magnitude of cost savings you will get with air
freight.

Remember
though to stick with standard sized boxes. They fit nicely on pallets. This
standardization is what makes it possible for shipments to smoothly move from
factory floors onto trucks, and onto ships.

There’s
an extra cost with using pallets if you are importing from China. The
wood will need special treatment before it can make it into the US. Same goes
for some other export countries, and some other import countries too.

Cost-Effective
Packaging For Air Freight

There
isn’t much space in a plane’s hold. That’s why air freight costs are based on volume more
than weight. And that means that your goal is to reduce gaps between packaged
products inside the carton, and between other cartons.

Here’s
some hints to reduce volume.

• Forget
pallets – they take up a lot of costly room.

• If
your cartons are light, have them packed together wherever possible, and use
non-bulging, lightweight but strong packing materials.

• Is
the packaging your supplier is recommending the smallest box possible? If not,
use an online dimensional weight calculator to see how much extra you may be
paying for the larger box. Then you’ll know whether you should be insisting on a
smaller box.

Expert
Packaging Ideas

So
far, the advice has been to pack products closely, use less packaging, and
consider changing the product packaging, but how do you do any of this without
compromising safety?

And
beside, isn’t this going to be detrimental to sales? We all know that impressive
packaging helps sells those products, right? In effect, you really have to be an
expert to get it right. So here’s a protip – talk to an expert! Contact a
packaging company near you for some creative ideas so that your product will
still look great, your stock will stay protected during transit, and you will
save a bundle on freight costs.

There’s
a little more to packaging than meets the eye, but it will be well worth your
while taking up on these tips. Like the young child unwrapping it’s first gift,
it really is worth the time checking the packaging out.

Want
to learn more sourcing best practices?

Join the Global Sources Summit that combines conferences and
networking, co-located with our Hong Kong trade shows. The event will be held
April 17-19, 2017, and is geared toward online and Amazon
sellers.

John
Edmonds is an online freight evangelist at Freightos, the online freight marketplace where importers
instantly compare, book and manage freight shipments online. A career spanning
phones, electricity and gas has seasoned him for finding the fascination in
freight...but he always makes time for cricket. Check out ship.to for more of John's global shipping
tips.

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