Effects of Ecommerce on the packaging industry

Tony Foster, Sales and Marketing Director of the UK packaging division at DS Smith, recently spoke to Packaging News about the effects Ecommerce has had on the packaging industry. Tony believes it’s created an even more exciting and competitive retail environment. His comments were included in a feature available online and published in the magazine’s July 2015 issue, and here they are in more detail:

•  What recent interesting work has DS Smith carried out in Ecommerce packaging?

We have recently helped natural skincare brand Dr Organic create a new suite of packaging to support its e-retail offer. As a brand built on a firm commitment of premium ingredients and ethical practices, it was really important for us to maintain these values when creating the perfect pack.

Shoppers are increasingly comfortable with ordering products online and they have an expectation that their goods will be delivered in a cost-effective, timely manner without damage or defect. With a brand built on quality and provenance, the expectation is even higher.

We worked closely with Dr Organic to build a range of packs that hold the product firmly in the centre, creating a small void around the pack for transit protection. The cases are quick to erect and the securing adhesive tapes mean fast packing, which in turn reduces labour costs and ensures security and tamper evidence.

As corrugated packaging is 100 per cent recyclable, this was the perfect choice for Dr Organic. Its customers are clearly environmentally aware and will understand the value of using just the right amount of fully-recyclable packaging.

• What are the main challenges faced by those creating packs for online shoppers?

With packaging playing a much bigger part in the e-retail customer experience, there is greater expectation for the secondary packaging to deliver brand values as well as keeping the product safe and secure.

The branding and personalisation of the package is a crucial part of transferring the shop/boutique experience into the home but the packaging also needs to arrive in the right condition. Customers for luxury branded goods will reject packs if they are damaged by the time they reach their doorstep.

Retailers and brands in the e-retail space ensure product availability and delivery, whilst at the same time creating innovative packaging solutions that will bring the brand experience into the home. Add to that the importance of ensuring a product arrives in perfect condition at the minimum cost and environmental impact to the retailer, and it is easy to see why in the future, the battle for loyalty may well take place in shoppers’ homes rather than in retail stores.

As well as this, the explosive growth of e-retail means that packs must be available to cope with a huge range of product sizes and shapes. They need to be economical, quick to pack, protective and easily opened, returned or disposed of in the home.

• Are eCommerce packs as environmentally friendly as they can be?

We are always striving to create the perfect pack for our customers using the least amount of excess material, whilst maintaining the protective elements. As well as this corrugated packaging is 100 per cent recyclable making it more environmentally friendly than most other materials.

• Amazon introduced third party branding with its Minions packs (including a link to other minions products) do you think this might open the doors for similar campaigns in eCommerce packaging and possibly more colourful packs in general?

Yes definitely. We have seen a huge rise in personalisation and with the increase of digital printing and further capability to be flexible and responsive, the option to personalise products quickly and relatively cheaply has become a reality. Whilst this development has proven particularly popular with primary packaging, secondary packs can benefit from the trend as well.

The technology is really already here but over the next few years we would expect to see much more use of digital information within secondary packaging. This can dramatically enhance the way brands can package and present their products to reinforce the customer brand journey and reach customers at the very last point of purchase.

Although we already work in a fast moving promotional world and the UK retail infrastructure is used to reacting quickly, the more prints and packs are personalised, the more important timing and flow through the supply chain becomes. It is counter-productive if a carefully planned promotion or specific message ends up in the wrong place at the wrong time.

• Any other points you’d like to add?

Ecommerce has created a cut throat retail environment with retailers battling it out to meet consumer demand efficiently and profitably. The benefits of getting it right are abundant and therefore packaging has become more important than ever. Retailers should work as closely as possible with their packaging supplier to ensure they choose a solution that not only is aligned with their brand values and ethos but that uses the minimal materials, reduces labour costs, protects the product and takes cost out of the supply chain.

We have invested in a simulated e-retail environment at our Impact Centre in Ely where we work with customers to consider all aspects of the home delivery supply chain.