Committing to Eco-Friendly Packaging Practices Can Save Your Company Money

Why you should go green with eco-friendly packaging

Thoughtful businesses can help the environment by using eco-friendly packaging without sacrificing consumer satisfaction — or the bottom line. Consider the following six strategies that can make using sustainable packaging a win-win for your business and customers.

1. Lightweight packaging reduces shipping costs.

The lighter the packaging, the less it costs to ship your products — not to mention that it produces less waste on the receiving end. With this in mind, materials like molded pulp, jute and biodegradable plastic films have become industry favorites.

2. Customers appreciate environmentally conscious businesses. 

Evan Kuterbach, co-founder of Canyon Pickleball, which uses eco-friendly packaging, says a commitment to sustainability can earn high marks with your target audience, helping you earn repeat business and customer loyalty. “Customers love supporting brands that care,” Kuterbach stressed. “In our experience, the small amount we pay extra for our eco-packaging is easily covered when you factor in the customer loyalty we receive for sustainable packaging.”

Opting for green packaging — especially lightweight options that reduce material waste — can set your company apart as trustworthy and respectable in the eyes of consumers. Additionally, streamlined packaging made with recycled materials can help you provide a great customer experience by generating less waste and addressing personal environmental concerns. 

3. Lightweight, durable packaging can eliminate waste while protecting products.

Some businesses use traditional packaging methods out of concern for product protection. After all, the materials used to ship your products must be durable enough to protect the contents along the sometimes tumultuous journey from the warehouse to the customer’s doorstep.

For example, an electronics company may use 100 percent post-consumer recycled materials packaging. However, if the packaging isn’t strong enough to protect the customer’s smart TV or gaming console, the company will be faced with the (ultimately avoidable) costs associated with handling the return as well as potentially losing a valuable customer who received a damaged product. 

Fortunately, many eco-friendly packaging options are robust and effective — and excessive packaging materials are often not needed for protection. “Embracing minimalism in the packaging design process can also help reduce excess packaging materials that aren’t needed to get a product to a consumer safely,” noted Matthew Wright, CEO and founder of Specright.

4. Reduced packaging material increases logistical efficiency.

If you use your own trucks to transport your products to wholesalers, warehouses, retailers or direct-to-consumer destinations, smaller packages can increase your shipping efficiency. With reduced packaging materials, you can fit more packages in each vehicle, cutting down on the number of trips needed and reducing costs for drivers and fuel.

Wright pointed out that businesses can also increase logistical efficiency by focusing on local materials for packaging. “Companies can prioritize materials that are sustainable and found locally, minimizing transportation costs and emissions,” Wright explained. 

5. Reusing packaging materials reduces material costs.

A business can save even more money by reusing packaging materials for future shipments — an excellent way to implement environmentally responsible packaging. For example, if you receive a shipment with packing paper or recyclable filler from a vendor and it’s in good shape, use it to cushion a shipment to a customer. In this scenario, your packaging filler is essentially free and you minimize waste by avoiding disposal or recycling. 

6. Reusable packaging increases your product’s value to customers.

Implementing reusable packaging in your business is an effective way to increase the perceived value of your products. By delivering your products in versatile, reusable packaging, customers can repurpose them for storing items, packing gifts and more.

There are three primary types of reusable packaging: refillable, returnable and repurposable. Here are a few examples of each:

• Refillable: Consider a business that sells an attractive liquid soap dispenser filled with scented soap. It could sell larger refills packaged with less plastic, allowing customers to refill the original dispenser. 
• Returnable: Some breweries sell their beer in a large container called a growler. The customer pays a deposit on the growler and can receive a refund when they return it.
• Repurposable: A candle manufacturer may encase its candles in a glass jar that can be repurposed as a flower vase once the candle has been completely used.

7. A streamlined returns process reduces logistical headaches while minimizing excess packaging.

Return rates for e-commerce sales are consistently higher than for brick-and-mortar stores. Those returns add up, making it even more crucial to design smart, reusable packaging that eliminates waste and simplifies the reverse logistics process for retailers.

For example, more companies now include a return package with product shipments. This can help make the returns process easier for customers. However, this approach can increase costs for your company and negatively impact the environment. Instead of providing extra materials, consider a return mailing label and use packaging that can be used to deliver the product and handle any returns.

5 types of eco-friendly packaging

To be considered eco-friendly, product packaging should include one or more of the following characteristics:

1. Recyclable material
2. Nontoxic material
3. Reusable material
4. Material made from recycled materials
5. Material made from natural products 

For example, milk in a glass bottle is considered eco-friendly but not milk in a plastic container. Glass meets the definition of eco-friendly packaging because it is recyclable and reusable. 

If you’re ready to start using eco-friendly packaging, here are some of the most popular materials to consider:

• Recycled paper: When considering eco-friendly packaging materials, anything made from recycled materials is beneficial for the environment and can decrease garbage. This is why recycled paper and cardboard are some of the top eco-friendly packaging materials to choose from. Almost any type of paper or cardboard can be recycled as packaging.
• Mushroom: Mushroom packaging has become a popular trend for those seeking low-cost resources for packaging materials. This type of packaging is made from mushrooms, so it’s a nontoxic and biodegradable material that can help with your goal of a better environment. The mushrooms are ground finely and make great durable packaging. As a bonus, sharing that your packaging is biodegradable on your product label can help get consumers’ attention. 
• Cornstarch: Cornstarch is made from corn, a renewable resource that is low cost and economical to produce. Furthermore, the ingredients used in cornstarch break down, making it biodegradable. Cornstarch can be used for various packaging options.
• Organic fabric: An eco-friendly alternative to plastic bags is organic fabric, such as recycled cotton, used for reusable bags. Unlike plastic, organic fabrics biodegrade in about 100 days. Consumers are also more likely to reuse fabric bags, so capitalize on their continued use by imprinting them with your brand image and contact information.
• Bamboo: Bamboo is a renewable resource that makes an excellent alternative to plastic or Styrofoam packaging. It is one of the fastest-growing species of plants, growing 24 to 36 inches in 24 hours. Bamboo is sustainable, doesn’t need pesticides and chemicals to grow and decomposes naturally. It has a wide variety of uses, including the manufacturing of dinnerware (plates and bowls), flooring, bed linens and food boxes.

Above all, e-commerce packaging trends reflect a desire to accommodate changing consumer online purchasing habits and attitudes. Understanding what customers expect in their packaging while staying on top of eco-friendly practices can help you stay ahead of the curve.