Right-Sized Packaging: The Smart Way to Cut Costs and Thrive Sustainably

When it comes to ecommerce shipping, one size definitely doesn’t fit all. Too often, merchants use packaging that’s way too big for the item being shipped. In fact, sustainable postal packaging company, Woola, analysed parcels and found that around 50% of them had packaging that wasn’t right-sized. 

This doesn’t just waste materials; it directly impacts your bottom line and leaves a poor impression on eco-conscious consumers.

If your team is still relying on a “grab whatever fits” approach or constantly dealing with high shipping charges, it might be time to rethink your packaging strategy. This guide breaks down the problems caused by incorrect packaging, the key benefits of right-sized packaging, and how ShipBob can help you implement smarter packaging solutions.

What is right-sized packaging?

Right-sized packaging is exactly what it sounds like: using packaging that’s just the right size for the product inside, no more, no less.

Instead of tossing a small item into a massive box with loads of bubble wrap or paper, right-sizing means selecting the most compact packaging possible that still protects the item during transit.

Problems caused by poor and incorrect packaging

Before we dive into the solutions, let’s look at some of the most common issues caused by oversized or incorrect packaging for ecommerce businesses.

Higher shipping fees due to additional size/weight

The most immediate impact of oversized packaging is financial. Many major couriers now use dimensional weight pricing (especially when shipping cross-border), which calculates shipping costs based on package size rather than actual weight for less dense items.

For example, shipping a lightweight 1 kg product in an oversized box might result in being charged for 5 kg’s of shipping weight. These unnecessary costs add up quickly, especially for high-volume shippers.

Waste of materials and space in transit

Oversized packaging requires excessive dunnage like air pillows, bubble wrap, or paper to prevent products from shifting during transit. This increases your packaging material costs and reduces efficiency throughout your supply chain.

Additionally, larger packages take up more space in delivery vehicles, reducing the number of packages each truck can carry. When multiplied across thousands of shipments, this contributes to increased carbon emissions and transportation costs throughout the entire logistics network.

Negative environmental impact

Excess cardboard, plastic void fill, and other dunnage materials create unnecessary waste. While many packaging materials are technically recyclable, consumer recycling behaviour varies widely, and oversized packages often end up in landfills.

As consumers become increasingly environmentally conscious, wasteful packaging can damage your brand’s reputation and conflict with sustainability initiatives. Implementing eco-friendly packaging isn’t just good for the planet—it’s becoming a business necessity.

Poor customer perception from receiving oversized boxes

If you’ve ever ordered a small product that came in an oversized box like this, you’re not alone.

Source: Woola

To a customer, this can make your brand look careless, wasteful, or even unprofessional, damaging trust and repeat business. You want packaging that fits just right and feels intentional.

Benefits of right-sized packaging for ecommerce brands

So what happens when you get your packaging right? Let’s explore how right-sized packaging solutions address these challenges and create competitive advantages.

Reduces shipping costs by avoiding dimensional weight fees

By minimising package dimensions, you can substantially reduce shipping costs associated with dimensional weight pricing. For many ecommerce businesses, especially those that rely on small parcel shipping, these fees represent one of the largest operational expenses.

Optimised packaging also enables more efficient order consolidation when customers purchase multiple items, potentially allowing you to combine orders into a single shipment rather than shipping items separately.

Decreases waste for a more sustainable business model

Right-sized packaging naturally reduces material waste throughout your supply chain. Less cardboard, less plastic, less paper.

This waste reduction supports broader green logistics initiatives and helps position your brand as environmentally responsible. Many brands are now highlighting their sustainable packaging as a key selling point for eco-conscious consumers.

“Utilising ShipBob’s network of fulfilment centres allows us to lessen our carbon footprint as well…By shortening the transit distance, we get to shorten transit time and reduce the amount of pollution produced in the shipping process. Even in the final stages of fulfilment and last-mile delivery, ShipBob enables us to stay true to our mission!”

Juliana Brasil, Director of Operations at Food Huggers

Improves operational efficiency in fulfilment workflows

Appropriately sized packaging streamlines the packing process. When packers don’t need to spend time stuffing void fill material into oversized boxes, they can process orders more quickly and efficiently.

Right-sized packaging also typically requires less storage space in your ecommerce warehousing facility, allowing for more efficient use of valuable warehouse real estate. This becomes especially important as your business scales.

Enhances customer satisfaction with better unboxing experiences

Today’s consumers increasingly value thoughtful, efficient packaging. In fact, 72% of consumers say packaging influences their purchase decisions, and 55% of shoppers say they would repurchase from a brand if their order arrived in premium packaging.

A well-designed package that fits products properly also helps prevent shipping damage during transit, reducing the likelihood of associated customer service headaches.

How to implement right-sized packaging (best practices)

Now that we know the challenges of incorrect packaging and the benefits of right-sized packaging, how do we implement it? Here are some best practices to get you started.

Use data to determine optimal packaging sizes for SKUs

Look at your SKU dimensions, weights, and shipping history. From there, identify the most common item types and bundle configurations, and then source packaging that fits those scenarios.

This works great for smaller stores; however, for stores managing hundreds of SKUs with varying sizes and weights, figuring out the ideal packaging for every item can quickly become overwhelming. ShipBob uses Cubiscan machines to accurately measure the dimensions and weight of each product, creating a digital profile for every SKU in your catalogue .

Combine that with a box selection algorithm, and you can automatically determine the most efficient packaging for every order, helping you optimise not only packaging but also your ecommerce fulfilment strategy.

Invest in eco-friendly and branded packaging solutions

With many brands now working towards greener logistics, explore sustainable packaging alternatives like recycled cardboard, biodegradable mailers, or packaging made from renewable resources. Many suppliers now offer eco-friendly packaging options that are both cost-effective and planet-friendly.

On top of that, branded packaging is a powerful way to extend your brand experience beyond the purchase and into your customer’s home. Custom packaging that’s tailored to your product dimensions not only creates a more polished unboxing experience but also reduces excess space, helping you cut down on waste and additional fees.

Train warehouse staff to follow optimised packing workflows

Develop clear packing guidelines that help staff quickly identify the appropriate packaging for each order.

An order management system plays a critical role in enforcing these guidelines. It provides real-time instructions and packaging recommendations based on each order’s contents, ensuring that team members use the right box or mailer every time. This removes guesswork and speeds up training, especially as your SKU count or packaging options grow.

Regular training still matters, of course. Make sure team members understand the “why” behind packaging optimisation, particularly when rolling out new materials or processes. This is especially important in environments using dynamic storage, where items are constantly being reorganised to maximise space and efficiency.

How ShipBob powers scalable right-sized packaging practices

At ShipBob, we’ve built sophisticated systems to optimise packaging across our global fulfilment network. Here’s how our approach helps brands implement effective right-sized packaging strategies.

Visual packing instructions for accuracy and efficiency

ShipBob’s warehouse management system provides packers with clear visual instructions for each order, including recommended box sizes and packing materials based on the specific products being shipped.

These visual prompts significantly reduce human error in packaging selection and help maintain consistency across multiple fulfilment centres. For brands leveraging TikTok fulfilment or other high-volume sales channels, this consistency is crucial.

ShipBob’s system continually learns and improves, allowing for ongoing optimisation as your product mix evolves.

Automated dimensional weight calculation for cost optimisation

ShipBob’s technology automatically calculates dimensional weight for each shipment and selects the most cost-effective shipping method based on real-time carrier data.

This automated approach helps avoid unexpected oversized shipping surcharges and ensures you’re always getting the best available rates for each package configuration.

By optimising for both package size and carrier selection, our system helps minimise the impact of dimensional weight pricing on your ecommerce shipping costs while maintaining delivery speed expectations.

Integrating custom packaging with ShipBob

Handling fragile, hazardous, and bundled orders

ShipBob’s system identifies products requiring special handling and automatically applies appropriate packaging protocols. This is particularly important for fragile items that need extra protection despite right-sizing efforts, helping to prevent shipping damage.

Additionally, for bundled orders containing multiple items, our system calculates the optimal combination of packaging to minimise dimensions while ensuring product protection.

Inventory data-driven packing optimisation

By leveraging comprehensive inventory data, ShipBob can continuously refine packaging recommendations. By analising thousands of shipments, our system identifies patterns and optimisation opportunities specific to your product catalogue .

This data-driven approach ensures that packaging strategies evolve alongside your business growth and product offerings. As you expand your SKU range or enter new markets, our packaging recommendations adapt accordingly.

The insights gained through our ecommerce logistics platform help inform broader business decisions, from product design considerations to supply chain optimisation.

Get started with ShipBob

Interested in leveraging ShipBob as your fulfilment partner? Request a quote to connect with our team.

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