Box size does matter, especially for overseas shipping. I personally spent extra to order 5 different size of boxes to fit products as tightly as possible. Cost of boxes is nothing compared to shipping items in a box much larger than the item - every cm you can shave off the box size makes a difference. And in some cases (mine), you don't want printed boxes that reveal the contents (even a brand name can be revealing)... if people know your brand and you sell expensive items, having your name on the outside of the box could mean theft and the customer does not get their order. I personally keep the outside plain... but when they open the box, everything is branded, nice branded dust bag with drawstring, thank you card, product care on the back of card etc etc. I focus on the unboxing experience... not the delivery appearance.
Good point on the ship cost calculation based on volume. You can have a 2oz item that will only fit in a 12"x12"x6" box and you'll pay for roughly 4 pounds at courier calculation - box size always comes first and in most case will be higher than the actual weight of the item. In our case, most of the box sizes are charged out at about 2kg - but most items are half that weight. Hence we focus on matching box size very tightly to product size to minimize shipping costs.
Thank you for this super informative video on product packaging. It is packed with very useful tips. It's an excellent introductory video for someone like me who is completely new to product packaging.
I bought rubber stamps with my logo on there. Takes 5 seconds to stamp each box. I take more time on local purchasers gift bags. I stamp and the use shiny embossing powder to make my local customer feel fancy. I drop my 6” square box into a 10” square box. Packing paper between. I use pirate ship and print a mailing label. I’m trying to sell locally more often than not. Aiming toward opening a local art gallery.
Dear Spencer, thank you so much for your video🥹. I am developing a product which hopefully very soon I’ll have it ready for e-commerce it!!! This is the first video I saw from you, I will have a look through your channel to see if you have made something about new products in the market. I have filled a patent for mine and it should be ready by Jan2025 🤞🏽 We are now at the point of thinking about the packaging, and my conundrum is think purely packaging for e-commerce or come up with something that will also be attractive for retail selling (which I aim to do at some point after I have made some money from the first line of selling online…) questions, questions 🧐 Anyway, I just wanted to thank you for you sharing your knowledge and experience, very much appreciated 🙏🏽
Hey Spencer, super inspired by how you built solo stove. As I begin my journey, it’s stories like yours that keeps me going even when I wana give up on most days lol. Anyways, we’re launching a luxury, fashion-focused drinkware brand and I believe quality packaging/unboxing experience is extremely important for what we’re standing for - luxury, high-end and fashion. Do you still think it makes sense to cut costs and go for cheaper looking packaging in terms of our luxury brand?
If you're going for luxury/high end products, then it does make sense to spend some time and energy on the packaging. Just remember that customers don't see the packaging until after they bought so don't get too hung up on it if it's keeping you from moving forward and testing your product in the market. I guess my comments were more to help you find that balance between progress and perfection. I hope that helps and excited for you to share your site with me when it's live!
@@SpencerJan Hey Spencer, wanted to run something else by you in regards to profit margin. So, it looks like we are around 80% landed gross margin - looks healthy. However, we're currently in the process of choosing our high-end packaging and it seems like it's going to get expensive. So with a worst case scenario, we are looking at around 60% margin (this includes literally everything except for marketing/ads - includes covering 50% of customer shipping, freight shipping, credit card fees, packaging/inserts, literally everything etc). What are your thoughts in terms of the 60% margin? Appreciate your input!
@@lkim420 That sounds like really expensive packaging. I don't know how much your product costs but let's say it's $100 for easy math. 80% gross margins means $80 of gross profit. 60% gross margins means $60. That would mean you're spending $20 on packaging?!?! I'd reconsider how much value you're getting out of spending $20 on packaging. Of course, I don't have all the info so I'm just shooting from the hip here. In the end, the principle of higher margin = more oxygen to breathe holds true. More margin is better.
@@SpencerJan it is def expensive. Especially for when economies of scale isn’t there for low quantity orders. Keep in mind, this is our first run of inventory. Just to give you the math, the cost per unit for packaging is around 50-60% of the cost/unit itself. Obv that’s a big portion, but high-end quality packaging is extremely important to us as we are a luxury/high end brand and will be using the packaging in our content as well. Just to give you an idea, spending $1-2 on packaging gives us around 67% on net margin (everything inclusive to the customer’s doorstep). We are looking at around $5-7 on high-end packaging that’ll bring that margin down to about 60%. Wondering what your thoughts on that based on a more detailed explanation of our situation. Anyways, I truly appreciate you responding and your input!
@@SpencerJan hey Spencer thanks for the reply. Enjoy a lot of your stuff , got a lot of insight when you went on the Ecom fuel podcast. I just wanted to ask are you ever available for 1on1 mentorship? Would love to get some help, trying to launch my first brand
Hi Spencer. I’m working with a supplier and they don’t have a die line and asked me to send the package design. Is it possible to design package without die line based on product dimensions? Thanks
Sure. If they know the box size and are willing to help you lay it out, then just give them the art work. But if they’re asking for you to design the box size and the art work, you may need to work with a packaging designer who can do both. I hope that helps!
Do it in-house if you're really small (aka, pack from home) to save money. When it starts taking too much time and the opportunity cost is too high, go to 3PL and see if a good partnership helps your business grow. Good luck!
Hi Spencer, by Online the customer does not see the packaging, but he does see it when he receives the product and it adds to his customer experience. It is does not strengthen the brand and can make him to buy again from me?
It can definitely help with the brand experience so there is value. My point was more to remind folks not to get hung up on making it perfect before knowing whether or not people will actually buy the product. I'm an advocate for progress over perfection so just find that balance between moving forward and trying to have all your ducks in a row.
