Packaging is quite often chosen once and then quietly just left alone. It sits in the background simply doing its job. Orders go out. Boxes arrive. Until costs creep up, return rates spike or customers start commenting on excessive void fill, and suddenly packaging is back on the agenda. The issue here is not that packaging lacks impact. In fact, the primary issue is that a lot of ecommerce brands do not measure it properly.
Packaging as a performance lever, not a cost line
Ecommerce volumes continue to grow year after year. The Pitney Bowes Parcel Shipping Index has regularly shown the scale of global parcel expansion, with billions of shipments moving annually. At that scale, small inefficiencies multiply quickly. A carton that is slightly oversized, an insert that adds unnecessary material, and packing processes that takes a few seconds longer than it should. None of these feel dramatic in isolation. Across tens of thousands of orders though, they become structural costs.
With this in mind, you might not be surprised to learn that organisations taking data-led approaches to operations tend to outperform those that rely on assumption. McKinsey has repeatedly highlighted the margin impact of granular operational measurement across supply chains. Packaging deserves the same scrutiny.
Core cost and efficiency KPIs
If you want to treat packaging as a measurable performance driver, start with the basics. Packaging cost per order is the obvious one. Not just cost per box, but total packaging material cost divided by shipped units. That includes void fill, tape and inserts.
Dimensional weight impact is another. Carriers price based on space as well as mass. If your packaging inflates parcel size unnecessarily, you are effectively paying to ship air.
Damage rate should be tracked carefully, ideally segmented by product category and packaging format. What is the cost per damaged unit once replacement, shipping and handling are included?
Labour time per packed order is often overlooked. A packaging format that reduces packing time by even five seconds can generate meaningful labour savings at scale. Over a year, those seconds accumulate into hours, then days.
These metrics begin to shift packaging from a static purchase to a variable lever.
Customer experience and returns metrics
Packaging also shapes how customers feel about your brand. Return rate is a headline figure, but it is more useful when segmented. How many returns are preference-driven, and how many are damage-driven? If damage-related returns exceed industry norms, packaging may be part of the issue.
Customer complaints linked to packaging are another useful signal. Crushed corners, excessive plastic, difficult opening experiences. Individually minor, collectively revealing. As such, Narvar’s research into returns behaviourhas shown that ease of returns influences repeat purchase intent.
If your packaging supports simple resealing and clear return instructions, that can positively influence customer perception even when a return occurs. This is much about lifetime value as it is about control.
Sustainability and material performance indicators.
Material usage per shipment, proportion of recyclable content and void fill ratio are all measurable when it comes to reporting. Tracking them allows you to align packaging decisions with broader ESG commitments rather than relying on marketing claims.
With this focus in mind, the Ellen MacArthur Foundation continues to emphasise the importance of reducing unnecessary material and designing for circularity.
If you cannot quantify your material usage, it becomes difficult to improve it. Data provides that baseline and can therefore help support key decisions moving forward.
Turning data into decisions
Collecting metrics is one thing. Acting on them is quite another. Allpack Packaging Consultants are able to assist with this packaging audit. Our trained team of packaging specialists start by establishing a clear baseline across your current packaging formats. They can help measure the cost per order, examine damage rates and get to grips with dimensional weight charges and packing times.
We can work with you in testing alternative solutions, by utilising our in-house CAD Department in creating samples for controlled trials. We can adjust carton dimensions for a specific SKU ranges or introduce new insert designs, or trial different board grades to find the correct result.
If you would like to explore how your packaging could be optimised and enhanced, we look forward to discussing how your current setup and the metrics that matter most to your operation can be taken to the next level. Send us a message, email sales@allpack.uk.com, or call us on 01543 396 700 to find out more.