How to Reduce Packaging Costs as the Price of Materials Rise

As inflation rises, dragging up the cost of protective packaging products, cost has become a hot-button topic for many businesses. Increases in material prices and shipping costs are eating into the margin of businesses, especially in an era where consumers continue to demand fast and free (or at least low cost) shipping. 

The trouble is that, whether you’re moving large, bulky products or small, delicate items, you can’t simply reduce the protective packaging you use. Making sure items get to their destination intact and undamaged is still the top priority. Cost remains a distant second, but that doesn’t mean there aren’t things a business can do to reduce packaging costs.  

Reduce Packaging Materials (The Right Way)

One way to reduce packaging costs is by reducing the amount of protective packaging you use. As noted above, this vastly increases the risks of damage being incurred while items are in transit. But reducing the amount of protective packaging materials doesn’t always have to result in less protection. It’s possible to both cut back on the materials used and even increase the protection they provide.  

Using custom die-cut foam protective packaging allows for the highest level of protection while using the least amount of material possible. Die cutting creates a precision cut into a piece of foam that 100% matches the shape of the item it is protecting. These pieces can be mass produced in any number, allowing for large runs of parts to be created all at once and providing the best cost efficiency in your custom packaging materials. 

Reduce Returns and Reverse Logistics

When an item is damaged in transit, and a return is issued, the costs begin to pile up. Not only has the business already paid for the labor and price of packaging and shipping the item, but they also must now pay for the return trip home, the processing of the return, potentially salvaging the item, and the repackaging and shipping of a new item out to the customer. This is an immense amount of cost for a single sale. 

In order to reduce total packaging costs, it becomes essential to reduce returns due to damaged products, even if it means upgrading your packaging to a more expensive option. Many businesses have found that spending a bit more on custom foam packaging, their margins actually increase on items because of the savings they experience when returns are reduced. 

Choose the Right Foam

Don’t make the mistake of thinking that all foams are created equal. There are many types of foam packaging materials on the market, and that’s because the properties of each of these types of foam make them best suited to protect different types of items. Some foams provide the shock absorption needed to protect heavy items; others provide the thermal insulation needed to protect temperature sensitive items. Some foams provide protection against vibration, electrostatic discharges, etc., and some variations are FDA approved to be safe for food and/or pharmaceuticals. Choose the right foam the first time to avoid costly mistakes in your product packaging. 


Don’t let packaging mistakes drive up your costs. Find the right custom foam with our expert team today!