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Businesses have noticed that many types of cardboard used for packaging have recently become up to four times more expensive. The raw materials needed to make cardboard, such as cellulose, cost up to 60-80% more, which has obvious consequences for the entire eCommerce industry. The owners of online stores are feeling the effects of the increases and wondering when it’s going to end. Why have prices gone up so much? What are the alternatives to expensive cardboard boxes? Read on to learn more!
If you run an online store, you have certainly already felt the effect of increases in packaging prices. We'll tell you a bit more why this is so in a moment. We also have several noteworthy solutions that will allow you to minimize the effects of these increases.
Why are cardboard packaging more expensive?
Buyers of paper and cardboard were faced with sudden increases in the price of raw materials at the beginning of 2022, and more upheaval is on the way. Among others, the increases were announced by the large packaging manufacturer Sappi Europe, who announced that cardboard materials would become about 10-25% more expensive in the near future
Going back a bit further, compared to the beginning of 2021, cardboard prices have increased by 100%. That’s enough to get the attention of everyone involved, from manufacturers to distributors to end customers and everyone in between.
What is causing such a drastic increase in the price of cartons? First of all, there’s the pandemic that has disrupted the global supply of raw materials for the production of packaging and almost everything else. Paper mills around the world have had to deal with the same supply chain issues that have negatively impacted production facilities in every business sector with predictable results and that’s why cartons and other packing materials have really become an expensive commodity.
In the era of COVID-19, the eCommerce industry has also developed very rapidly, as consumers have moved their shopping habits online. As a result, the demand for packaging is also increasing since online retailers most often pack their products in cardboard boxes. This means the price of cardboard is being pushed in the wrong direction for consumers by both supply and demand issues at the same time.
How much more expensive will cardboard packaging get?
As already mentioned, cardboard prices have doubled since the beginning of 2021. The cost of cellulose itself has increased by 80%, and paper for cardboard production by 60%. This has translated into increases not only in cardboard boxes, but also in things like tissues, toilet paper, paper towels and other cellulose-based products.
The prices of cardboard packaging are rising at an alarming rate and many companies no longer ask about the prices of paper, but rather about whether it is available at all. Unfortunately for eCommerce, cardboard has become the most expensive of all paper products.
So is every online store owner doomed to deal with increased delivery costs? Not necessarily. We’ve put together three ways to help you deal with the skyrocketing prices of cardboard packaging. And while no single strategy will completely protect you against increases, applying the methods listed below will help you minimize the impact of these increases on your business.
3 Reliable Ways To Avoid Increasing Packaging Prices
REUSABLE PACKAGING
While they may not yet meet the needs of every item shipped to consumers in eCommerce, reusable packaging is an excellent option for soft goods like clothing. It’s also ideal for shipments between distribution centers and retail locations.
Logistics companies in multiple markets have launched their own campaigns to introduce reusable packaging, with benefits for everyone involved. A common scheme is to equip each package with an internal return label, which, when scanned in any pickup parcel locker, will enable the packaging to be returned to the logistics warehouse or back to a specific store, which will significantly reduce costs.
While still in its early stages, the campaign to make reusable packaging a bigger portion of all packing materials used could reduce overall use of cardboard by a factor of ten. Reusable packaging can easily return to circulation with no compromise in effectiveness or customer experience, satisfying all parties involved and helping the environment through the decreased need for more paper-based goods.
SECOND-HAND CARTON RECOVERY
The millions of boxes that are used just a single time present an obvious opportunity to cut the number of new boxes needed to meet the demands on eCommerce. Boxes of every kind and size are available in any place that sends and receives significant amounts of goods. In addition to conventional retail locations, you can find them in pharmacies, wholesalers, flower shops, restaurants and many other places. Just ask many sellers — they will be happy to get rid of excess packaging.
It is also worth browsing national and local advertising portals and even groups on Facebook to connect with local organizations that have packing materials that they would be glad to get rid of.
FULFILLMENT
The last option is a fulfillment partner, which is our specialty. Why might this solution be helpful? First of all, because thanks to the cooperation with many partners, we execute thousands of orders per month, which gives us access to preferential order conditions.
We place bulk orders for boxes and packaging accessories directly from the manufacturers, which means we can negotiate better rates than any single store. Also, we order a large part of the packaging well in advance, which allows us to maintain rates that are no longer available and ensures the availability of the goods.
Wojciech Wolski
Logistics Development Manager at Omnipack
None of this means that we are shielded from the changes in the market that we’ve already described. But thanks to cooperation with us, you still have access to packaging prices that are lower than the vast majority of offers available on the market today. We are also happy to work with partners and advise them on how to reduce the costs of packaging orders to a minimum.
At this point, we encourage you to read two articles on our blog:
Working with Omnipack means you not only have access to attractive packaging prices, but also enjoy the certainty of knowing that packing materials are available, which is not always the case when you’re on your own.
Remember that you can use the full capabilities of your logistics partner (allowing you to focus 100% on the sales and promotion of your online store) or only some parts of it, depending on your needs. Whatever you depend on your logistics partner for, fulfillment is one of the simplest and most effective ways to optimize all costs related to logistics.
If you would like to learn more about reliable access to packing materials or anything related to improving your logistics support, please contact us for details.
Wrapping products is vital for secure and innovative solutions as it is the demand of modern business. Do you produce various items and need custom cardboard boxes in bulk to meet the requirements? Are you satisfied with your packaging? And do you have a balance in packaging cost and other essential factors of the boxes?
If yes, then you are efficient with your business. Does the cost exceed your budget? And hence it is necessary to grab the custom packaging that fits the demand for the box products. But that is too costly and doesn't have a balance between the cost and the benefits.
In this modern age, keeping the product safe and fresh is a must. However, if you don't use customized boxes, you can't achieve minimum business goals. And this is where the importance of the wholesale cardboard boxes appears. Since the cardboard material is easy to customize into any size, shape, and style, it is a little costly.
In addition, these boxes let you wrap your products innovatively and make shipping your items more accessible. However, with just a printed logo, these boxes help your brand stand out from the crowd which leads to bringing new customers potential and general sales.
It's important to note that the specific reasons for the increased cost of cardboard box wholesale in 2023 may vary depending on market conditions, industry trends, and regional factors. However, several other factors affect the price.
And it is easy to judge as the custom packaging demand is increasing vastly; it also raises the material's importance, use, and need. However, here is general information about factors that could influence the cost of cardboard boxes for packaging.
To get accurate and up-to-date information on the current pricing of cardboard packaging boxes, let's dive into knowing more about these factors.
Raw material cost is the first on the list to consider why cardboard wholesale boxes are expensive as it is demanding vastly. However, paper pulp is the primary source to create these boxes derived from trees.
The cost of raw materials can fluctuate due to factors such as changes in supply and demand, transportation costs, and environmental regulations affecting the forestry industry. In addition, if the cost of raw materials increases, it can contribute to higher prices for further use.
And the more fine paper you choose, it can either be bleached or simple brown cardboard, the higher the cost.
The next thing is the production cost. However, after getting the paper material, the next thing is to mold the paper into the desired size, shape, and design. And cutting the paper into different aspects causes the waste of the material. Manufacturing cardboard wholesale boxes involves various stages, including:
These processes require machinery, energy, labor, and maintenance, which can contribute to the overall cost of production. If any of these costs rise, it could result in higher prices for cardboard boxes.
Rising supply in demand can affect the price of the packaging. However, the more it is demanded, the more the price will be. In this advanced era, customers don't believe in the product that doesn't have custom packaging as an innovative display. And demand for custom boxes is higher due to these factors:
However, the higher demands lead to an increase in prices.
Additionally, suppose there are supply chain disruptions, such as delays in raw material delivery or manufacturing capacity constraints. In that case, it can affect the availability of cardboard containers and potentially drive up prices.
With the rise of technology, environmental pollution is increasing too fast. However, the business needs to use eco-friendly cardboard packaging solutions. And it must be the primary goal of a business to focus on sustainable packaging and reducing waste that affects the environment. Moreover, the govt and regulatory firms may introduce stricter environmental regulations that affect the production and use of cardboard paper material.
Meanwhile, compliance with these regulations might require manufacturers to invest in new equipment or adopt more environmentally friendly solutions, which could increase the cost as it is vital to use.
Do you use to produce various products and need cardboard box solutions in build to fulfill your demands? But investing in custom packaging may be too costly to exceed your budget. But how to minimize the cost and keep using such boxes as they are necessary for the packaging and branding? Here are some tips to follow:
Often, brands use boxes that are large and shaped, with different and unusual designs and a waste of cost. So, be specific with your needs. Cut the paper professionally as it is needed. Don't waste the raw material.
In addition, reduce the box size to meet the specific needs as needed. First, analyze what type of box, and the purposes of the printed cardboard boxes to use, then you can cut through the paper. However, the boxes are perfectly small, keeping the product snug and safe and reducing the shipping cost.
Another factor is to keep the design of your box simple as it can be, yet you can make it unique with shape style and using simple printing text and other necessary elements. However, invest in something different than extraordinary designs, other luxuries, and unique finishing options and increase production costs. In addition, if you first analyze your product packaging needs, it makes it easier to craft packaging that is simple, unique, and much better than using other unusual designs.
It would be great if you first look deeply at your packaging needs. Meanwhile, look at whether the luxury cardboard boxes appeal to your product. For a luxury brand, premium packaging is a must that reflects productivity, but for other items, it is just a waste of money.
Furthermore, find different ways to help you reduce the customization and designing costs. First, make a complete plan for the budget and other product goals, and how custom packaging is necessary for such items.
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