When the concept of e-commerce first began, shipping was quite easy. You could grab any box and send it to the post office. As social media has grown, and the industries have grown further, shipping has become part of the customer experience. It’s more about branding and doing the math of costs.
If you’re growing your business, or just starting to, then the most common question you might ask is, “ Can I use custom boxes, or am I forced to use the carrier’s packaging?”
Some would say no, custom shipping is a bad idea, and some would say you definitely need custom shipping. But there’s a catch. If you don’t understand the ‘packing logic’ behind custom shipping correctly, then you may be paying more in shipping fees and transit damages. This guide will walk you through everything you need to know about custom shipping.
First, let’s understand what custom shipping is.
What is Custom Shipping?
Custom shipping is essentially shipping products in boxes that aren’t prescribed by carriers. Every carriers have their own specific dimensions with respect to the weight and size of the products. So, instead of using the basic boxes and package sizing that is mentioned by a specific shipping carrier, custom shipping entails creating boxes that fit the dimensions of your product.
Think about it, if you’re selling a small product like a necklace, or bracelet band, then sending it in a “Small box” that makes your products look small, doesn’t make sense. Instead, if you design a box that fits your brand’s aesthetic and product’s unique dimensions, it’s more likely to create a unique experience for your customers.
According to a survey conducted by IPSOS, 72% of consumers admit that packaging design directly influences their purchase decisions. So if customers like the packaging of your product, they’re more likely to buy from you again or recommend it to others.
Carrier Boxes vs. Custom Boxes
When you sign up for a service like Australia Post or use an integration like EasyBox, you are usually presented with two primary paths for packaging.
Carrier-Specific Packaging
These are the boxes that are provided by the carrier, such as Australia Post, DHL, or FedEx. They are specific in dimensions and sizes. Here are some things to consider ;
- The Pro: They offer predictable pricing. If it fits, it ships for a flat fee.
- The Con: Your branding and experience provided to the customer would be missing. If your product is smaller than the carrier’s smallest box, then you’ll be paying to “air”.
Custom Packaging
Custom Packaging basically consists of boxes that you have sourced yourself. It’s often branded with your logo and designed specifically to fit your product’s dimensions.
- The Pro: You provide customers with an unboxing experience and optimized “Dimensional Weight” (costs based on a package’s volume ).
- The Con: Requires Advanced plugin configurations to ensure the shipping calculator at checkout accurately predicts which box will be used. Prices may vary and may be higher. However, our plugin will allow you to auto-assign custom boxes.
Advanced Plugin Features: Making Custom Boxes Work
To be able to use custom boxes, it’s more than buying them and asking your shipping carrier to use them. You have to use Advanced Packaging Plugins. These tools act as a virtual warehouse manager. Instead of having to do the calculations yourself, the plugin will calculate the most efficient way for you to pack an order. It’ll calculate the pricing based on the weight, the dimensions, and the volume, depending on the packaging option.
The Packaging Guide
Here are some aspects of your box that you must know when creating your own custom box for shipping.
- Box Weight: The physical weight of the empty cardboard box.
- Max Volume: The actual usable space inside.
- Padding/Margin: The “buffer” zone (usually 0.5 to 1 inch) you leave for bubble wrap or packing tape.
Why You Should Develop Your Custom Box for Shipping
Developing your custom box is more about branding and saving costs for your business. Instead of sending out packages that don’t fit, you get to create boxes that fit your product and save your pockets, too! More so, with the help of a plug-in, it all comes down to an efficiency logic.
When a customer puts three items in their cart, the plugin has to make a split-second decision. So, you must define your custom boxes. Or else, the system may default to the largest box, which would overcharge the customer. Most advanced systems, including the ELEX Advanced Packing algorithms, analyze three variables.
The logic follows these steps:
- Inventory Check: What are the dimensions (length \width \ height) and weight of every item?
- Box Matching: Which of your custom boxes can fit these items while minimizing “dead space”?
- Cost Calculation: Based on the selected box, what is the carrier’s rate?
Thus, by using an Advanced plugin, you can get the most out of your shipping process.
Packing Methods: Volume vs. Stack-Based vs. Weight-Based
This is where the math gets interesting. Most plugins offer two primary ways to measure rates for packing: Volume-Based and Stack-Based.
1. Volume-Based Packing
Volume-based packing is the dimensional approach. It calculates the total cubic volume of your products and finds a box with a higher volume. So what this does is it quickly calculates the volume of your products, and it’s great for items like clothes. But the only issue with volume-based packing is that it doesn’t account for the shape of your products the way a custom shipping box would.
2. Stack-Based Packing
Stack-based packing basically stacks all your products on top of or beside each other within the dimensions of your box. It is very accurate and ensures that the items physically fit within the length, width, and height constraints. But it requires more processing power, and there must be detailed product dimensions for every SKU in your store.
3. Weight-Based Packing
Weight-Based Packing has been newly introduced. While both Volume and Stack-based packing focus primarily on the space, Weight-based packing focuses on the capacity of the box. The system calculates the maximum capacity of your custom boxes and then matches products accordingly. Say you have a custom “Heavy Duty Small Box” and the limit is 20kg. The plug-in will allocate products that are within 20kg to the box until the weight limit is reached. What this helps is ensuring that the space in the box is utilized fully and that compliance with carrier safety limits is met. You can even utilize ELEX Weight-Based Packing to make your shipping process easier.
If a customer only has the weight and doesn’t have the dimensions, they can only specify the packaging weight using this method. This would help them, as the dimensions are not checked; only the box’s dimensions will be checked.
How to Create Your Own Custom Boxes
Step 1: Physical Audit
Measure your most common order combinations. Buy three or four “prototype” box sizes and see which ones work for your products. Select the ones that work best.
Step 2: Define “Outer” and “Inner” Dimensions
Carriers charge based on the Outer Dimensions (the space the box takes up in the truck). However, your plugin needs to know the Inner Dimensions (the space available for products) as well. Always subtract the thickness of your cardboard (usually about 3-5mm per side) when entering inner dimensions.
Step 3: Set “Padding” Value
In your plugin settings, add a “Padding” value. This ensures the system doesn’t pick a box that is a perfect fit, leaving no room for protective packaging. A standard padding of 10mm to 20mm is usually sufficient.
Step 4: Assign to Carriers
Ensure your custom boxes are “mapped” to your carriers.
The Financial Impact of Dimensional Weight
One of the biggest reasons to master custom boxes is to avoid the Dimensional Weight (Dim Weight) trap.
Carriers calculate shipping costs based on the greater of the actual weight or the dimensional weight.
If you ship a light item in a massive custom box, the carrier will charge you as if that box were heavy. By using Stack-Based packing logic to find the smallest possible custom box, you directly reduce your Dimensional Weight and maintain high margins.
Conclusion
Using custom shipping boxes can be a strategic move for your e-commerce business if you understand the physical logistics and the digital logic aspect of it. By utilizing Advanced Plugins, you can choose between Volume or Dimensional and Stacked Packaging or the Weight-based packing feature as well. This ensures that you display accurate shipping information when your customer views your product pages. More so, it allows you to reduce packaging waste as well.
Switch to custom shipping if you’re looking to provide a personalized experience for your customers. Choosing the right packaging and box makes a world of difference in their experience and perception of your brand.
FAQS
- How can a small business design custom boxes to optimize shipping costs?
Design your box around your “Hero Product” (your most sold item) and ensure there is exactly enough room for the product plus 5mm of padding. - Does using custom-branded boxes increase my shipping rates?
Not necessarily. In fact, if configured correctly, they can decrease your rates. - What are the typical lead times for custom box orders?
Typical lead times for custom-printed boxes range from 10 to 20 business days, depending on the complexity of the design and the supplier’s location.
- Can I integrate “Smart Packaging” (QR codes/AR) with custom boxes?
Yes, and you should. Interactive Packaging, basically, using QR codes to provide digital manuals or AR unboxing experiences, can help nurture brand loyalty.
