Reduce and Redesign Packaging – Good for the Environment, Good for Lower Shipping Costs

August 7, 2019


E-commerce and convenience have been a boon to the packaging industry. Consulting firm, McKinsey, estimates the industry to be valued at approximately $900 billion and growing at an annual rate of 3.1%. A fascinating report from McKinsey looks into this phenomenon and its impact on the amount of waste being generated and finds that although consumers’ desire for eco-friendly packaging is real, many are not willing to pay for it.

Despite this unwillingness to pay for it, transportation firms including UPS and FedEx are introducing their own eco-friendly packaging as the transportation market embraces sustainable practices.

Packaging also plays a role in shipping costs. The use of dimensional weight (Dim weight) shipping charges wsd adopted by FedEx and UPS several years ago as a means to address the increase in e-commerce volumes. Dim weight takes into account the size of the box in determing shipping charges and discourages shippers in using larger boxes for small items.

An article we recently shared on our LinkedIn page sparked a great conversation in the office, Amazon possibly fining sellers for using large boxes. Amazon’s shipping costs are high, up 36% year-over-year in the second quarter, by reducing the size of packaging, it should help lower some of its costs. To help sellers, Amazon has developed guidelines.

And it’s not only the sellers that Amazon is pointing a finger at. Last year, Amazon asked manufacturers to cut extra space and materials in packaging to bring down shipping time and costs.

Of course, Amazon has also highlighted the environmental benefits by noting that it has Amazon's sustainable packaging initiatives over the last decade have cut more than 244,000 tons of packaging materials over the past decade and it continues to work with vendors to create more sustainable packaging.

Indeed, a host of companies are looking to produce environmentally friendly packaging as well as to help reduce the time, materials, and space required to ship products. 3M, for example, has introduced a new type of packaging that requires no tape and no filler, and that can be customized to fit any object under 3 pounds—which 3M says accounts for about 60% of all items that are bought online and shipped. We applaud Amazon and 3M. Not only are they both addressing the environment but also lowering shipping costs.

 

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Reduce and Redesign Packaging – Good for the Environment, Good for Lower Shipping Costs

August 7, 2019


E-commerce and convenience have been a boon to the packaging industry. Consulting firm, McKinsey, estimates the industry to be valued at approximately $900 billion and growing at an annual rate of 3.1%. A fascinating report from McKinsey looks into this phenomenon and its impact on the amount of waste being generated and finds that although consumers’ desire for eco-friendly packaging is real, many are not willing to pay for it. Despite this unwillingness to pay for it, transportation firms including UPS and FedEx are introducing their own eco-friendly packaging as the transportation market embraces sustainable practices. Packaging also plays a role in shipping costs. The use of dimensional weight (Dim weight) shipping charges wsd adopted by FedEx and UPS several years ago as a means to address the increase in e-commerce volumes. Dim weight takes into account the size of the box in determing shipping charges and discourages shippers in using larger boxes for small items. An article we recently shared on our LinkedIn page sparked a great conversation in the office, Amazon possibly fining sellers for using large boxes. Amazon’s shipping costs are high, up 36% year-over-year in the second quarter, by reducing the size of packaging, it should help lower some of its costs. To help sellers, Amazon has developed guidelines. And it’s not only the sellers that Amazon is pointing a finger at. Last year, Amazon asked manufacturers to cut extra space and materials in packaging to bring down shipping time and costs. Of course, Amazon has also highlighted the environmental benefits by noting that it has Amazon's sustainable packaging initiatives over the last decade have cut more than 244,000 tons of packaging materials over the past decade and it continues to work with vendors to create more sustainable packaging. Indeed, a host of companies are looking to produce environmentally friendly packaging as well as to help reduce the time, materials, and space required to ship products. 3M, for example, has introduced a new type of packaging that requires no tape and no filler, and that can be customized to fit any object under 3 pounds—which 3M says accounts for about 60% of all items that are bought online and shipped. We applaud Amazon and 3M. Not only are they both addressing the environment but also lowering shipping costs.  

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