It’s no secret – eCommerce is booming. While brands still connect strongly with customers through retail presence, online shopping has made way for a new kind of convenience that keeps shoppers coming back for more. 

According to a report from Deloitte earlier this year, 2023 eCommerce sales were expected to grow between 10.3% and 12.8% year over year (to between $278 billion and $284 billion). With this strong shift comes important considerations for brands to address, including eCommerce-specific packaging, ship in own container, and sustainability.

eCommerce vs. Brick-and Mortar – What’s the Latest?

Retail has always been a critical way for brands to connect with customers. Elements such as in-store signage, how a package stands out from others on the shelf, and the tactile feel of packaging all impact the customer’s experience and decision-making process. However, with customers shopping online more frequently versus in a retail setting, brands are challenged with how to create as much of an experience with packaging online as in person.

According to a recent report from RRD, near equal importance is being paid to eCommerce versus brick-and-mortar packaging. When distilled for direct comparison, 19% of overall respondents said they developed a special eCommerce-specific package design, while 17% overall altered their package design to enhance the appearance or functionality for brick-and-mortar retail. Given the consistent rise in eCommerce, the data shows just how prevalent the eCommerce experience has become compared to retail shopping.

With holiday shopping in full swing, it is an important time for brand and packaging decision-makers to observe and consider how effectively their eCommerce packaging connects with customers. For many, retail shopping is a cornerstone of the holiday experience, whether that experience entails a mad dash to capture Black Friday deals, scrambling for last-minute gifts, or for adept planners, a casual stroll through the mall. 

However, eCommerce has presented shoppers with the convenience of shopping from the comfort of their own homes, which is a big advantage for anyone needing to do their shopping at odd hours or looking to dodge the hustle and bustle. According to the National Retail Federation, 58% of customers plan to shop online this holiday season. With this shift, brands must consider what their packaging needs to accomplish for customers, which has led companies to look at packaging a little differently.

Ship in Own Container – A Revived Option for Brands

Customers have become quite acclimated to the amount of packaging their products come nestled in – sometimes a box two or three times larger than the product they ordered. Ship in own container (SIOC) is a method that has been around for some time, but is becoming more and more prevalent, especially as eCommerce giants such as Amazon are putting SIOC programs into place to reduce excess material usage. 

With more customers buying items online, brands are pivoting to on-box branding in order to elevate the unboxing experience. Through interior and exterior colors, finishes, flaps, and layers, brands can work to convey messaging they once may have tried to accomplish through retail displays. 

Beyond the aesthetics of a package, product protection is paramount for companies, so brands must work to find a balance between the looks and performance of their packaging. Additionally, with the rise of package theft and “porch pirates,” brands should consider how to utilize SIOC while protecting the customer, perhaps through a subtle exterior accompanied by branding on the interior of a package. Beyond the branding benefits of SIOC, brands have an opportunity to utilize this method to heighten overall sustainability and cost saving success.

How Sustainability Intersects with eCommerce

The sustainability conversation is consistently evolving, but one thing remains clear – it is top of mind for both customers and brands. Based on the recent report from RRD, 90% of respondents continue to agree that sustainability is a key consideration in packaging and label decisions, and 66% of respondents report they are likely to make sustainability-led changes to current packaging in the next two to five years. 

SIOC alone has its own sustainability benefits, with material reduction at the forefront. With eCommerce’s existing environmental impacts (increased carbon emissions, material waste from packaging and used products, etc.), brands are challenged with looking for ways to enhance sustainability. 

Brands can also consider communicating the recyclability of materials directly on the package, using recyclable finishes and inks, and using product labels that can be easily removed in order to make the packaging reusable. Each of these options enhances the customer experience while supporting a brand’s sustainability efforts.

What Can You Do to Take Advantage of the eCommerce Packaging Trends?

• Evaluate your current packaging structures and creative elements. Due to the nature of eCommerce, opening the package is likely the user's first interaction with a brand. Make it a user-friendly and memorable unboxing experience.
• Conduct a material evaluation to elevate sustainability. There is sustainability with an uppercase “S” and sustainability with a lowercase “s”. Not all efforts need to be drastic, major changes. There are a number of things you can do around lightweighting and structural changes that can move you closer to your sustainability goals, while improving the shipping container and potentially leading to cost savings.
• Consult with your packaging manufacturer for guidance on packaging optimization and the latest trends. Your team is there to ensure you’re packaging your product efficiently in terms of form, fit, and function, but also effectively by leveraging smart packaging technology.