8 Simple Reasons Good Packaging Positively Affects eCommerce Sales

Packaging is currently the most talked-about strategy in eCommerce. Bold as that claim may sound, the reason is clear: product packaging determines, to a large extent, how successful your business can be.

Ecommerce brands understand that product packaging significantly influences product success rate in the market. Since there’s little or no person-to-person contact between you and your customers, product packaging should accurately represent your brand.

It should include all the ingredients that’ll not only make consumers purchase from you but also make them continue to buy from you. Improving product packaging is an old trick that businesses use to raise their sales. From winning new customers to keeping old ones, product packaging can boost business sales and foster business growth.

In this article, we are going to be showing you exactly how effective product packaging can affect business sales in eight key ways.

1. Good packaging improves your chances of getting noticed.

Customers are faced with an array of product choices every time they try to make a purchase online. Having to choose from many alternatives is a reality every online buyer must experience. Each one of us wants to make the right choice when it comes to making a purchase but we often visit stores with little or no certainty about what we want.

The mistake most businesses make is to assume that customers have already decided which brand they want to buy from before making a purchase. It is the reason why many eCommerce brands are struggling to earn a significant spot in the market.

Though a recent survey conducted by CompareMetrics revealed that 81 percent of shoppers conduct online research before buying, the truth is, customers make the most important decision of what to buy and who to buy from only when they visit the online marketplace. 

Shopping online is not as easy as it seems. You don’t get to ask a sales attendant which product is best. Most eCommerce brands are aware that anything can happen from the moment a customer begins to inquire about a product until when the purchase is made but only a few can take advantage of the situation.

Even if a customer already has a list of what to buy, they may change their choice of brand at any time.

Photo Credit: Packaging Images on Pikist.com

According to a study published on Psychology Today, up to 40 percent of consumers change their minds at the point of purchase because of what they see. 

Product packaging is the first thing a customer encounters through the purchase journey online. Attractive product packaging naturally makes your product stand out from others. Many shoppers go for products with packaging that catches their eye. 

The fact is, many shoppers have turned to a product because its packaging is visually appealing. By improving your packaging design you are not only going to stand out in the market, but you’ll also increase your chances of being noticed by customers.

2. Relevant product information on packaging influences purchase decisions.

A good product package beats the competition and increases sales at the same time. It is important to understand that packaging is not just about sleek and creative design but also content and relevant info.

Customers have numerous needs, and your product is going to solve only one of those needs. Shoppers want brands to assist them in making the right purchase decision.

Irrespective of what customers already know, they still need to be sure of what they are buying. Most eCommerce brands do not know that their product packaging can make customer’s purchase decisions easier.

A product package can boost sales by providing adequate product information. Once a customer likes an item’s packaging enough to inspect it, the next thing they often do is go through the content on it to ensure it’s the right product for them.

According to a survey, 51 percent of shoppers said that “[a] lack of information about products is their primary reason for abandoning an online purchase.” By providing accurate and relevant information on your product package you will have increased the chance of selling the product by 30%. 

Customers feel great when a brand anticipates and satisfies their needs whether in terms of product value, quality, or information. A 2016 survey reported that 63 percent of consumers think more positively of a brand if it gave them content that was more valuable, interesting, or relevant.

Brands can double their sales by adding content that informs customers about the composition of the product, when and how it was manufactured, the size of the product, and the product’s fitness for the stated purpose.

Your product packaging should always include an information section. While choosing a packaging design, ensure that customers can help themselves with what is written on your product package. The fact is that customers will go for a product that answers every doubt in their mind first before considering a product with a bland package.

3. Effective product packaging builds trust.

Product packaging provides just enough information for customers to form an impression about your company. According to a study, the first seven seconds a shopper has with your product determines how they view your brand forever.

In brick-and-mortar stores, this may not be the case as sellers may take advantage of the fact that they are meeting customers in person. The reality of eCommerce sales is that businesses have limited touchpoints.

If your product packaging is bad, you’ll not only struggle to sell, you will also find it difficult to make the right impact in the market.

Brands that do not give attention to their product packaging have the worst public image in the market.

Your product packaging is usually the first and perhaps the only contact with your customers so you don’t want to mess it up. When a product’s package is high-quality, customers will associate your brand and product with quality. 

Customers can relate to how valuable a product is as soon as they see the packaging. They know when you’ve used premium material for your packaging and when you did not.

The truth is quality packaging makes customers trust your brand. This is a plus for your brand’s public image. 

Companies with a strong positive public image make more sales than brands that do not invest in their public image. According to a survey, 43% of consumers believe trust is the most important factor when choosing a retailer.

Customers often buy from brands they trust but they cannot trust a brand that has not proven its worth. Using quality packaging materials is one way to increase your product sales. 

4. Effective packaging is also a marketing tool.

Product packaging is now an effective marketing tool. With the proliferation of unboxing videos on the internet, your product packaging can be the reason why a customer recommends your product to others.

According to a study by Google, 1 in 5 consumers have watched an unboxing video. Many customers now watch a video to choose the right brand.

However, customers may not make such videos with your product package if it is not visually appealing. In a recent survey, 39 percent of online shoppers said they would share a video or photo of a new product and 60 percent said they’d be willing to do so if the product comes in a gift-like attractive box instead of a traditional brown box.

Effective product packaging increases sales through unboxing videos, as such videos boost your online presence.

5. Good packaging helps customers remember your brand.

Psychologists have always claimed that humans respond positively to colors, symbols, and information when they are used repeatedly. Often, customers make their purchase as soon as they identify a popular or familiar logo and other brand elements.

By confidently displaying your logo and other brand elements on your packaging, you are increasing your chance of being noticed in the market.

When customers see your packaging online for the first time, they’ll only have a faint knowledge about your company. As you use the same product packaging repeatedly, shoppers will become aware of your brand and will be more likely to think of your company the next time they want to make a purchase.

Your product packaging should be a long-term investment.  For instance, brands like Coca-Cola have managed to turn their logo into a brand asset. Today, customers do not mind trying a new product as long as it carries the brand logo.

Effective packaging is bound to improve sales over time. Sometimes customers may refer others to your business by describing your logo or other brand elements to them.

6. Seasonal packaging drives holiday purchases.

With holiday sales accounting for up to 25 percent of most eCommerce businesses’ yearly sales, many companies are pushing to be among the winners this season.

Effective product packaging is one of the things businesses use to get conversions and double their sales during the holiday. 

This is a great time for impulse shopping as customers can’t resist the temptation of buying what appeals to them. A product that is packaged with a holiday theme will easily catch the attention of customers.

Customers will most likely make purchases for their loved ones. Since they’re buying a present for a loved one to mark the holiday, they’ll most likely prefer the product package to reflect the mood of the holiday.

The reason why many businesses are struggling to make sales during the holidays is that they don’t get it. They think holidays are too short a period to invest in.

Seasonal packaging is a strategy you could use after the holidays. For instance, in 2014, over 42 percent of new product launches were inspired by seasonal packaging.

These ideas worked so well that in some cases they replaced the old packaging.

7. Smart packaging can solve customers’ problems.

The best product packaging is one that is designed to solve a certain problem or is a breakthrough for your business and customers. Now more than ever, consumers are willing to make sure their health and money are not jeopardized in any way when they purchase from you.

Today, customers are willing to buy from brands that have adopted intelligent packaging as a strategy. Brands that use scented packaging and sustainable and biodegradable solutions will make more sales than those that stick with standard packaging.

The use of automated packaging also reduces the shipping cost of your product. You can pass those savings along to your customers.

Lastly, you can use dimensional packaging. This allows brands to choose the right size, height, width, and length of a product packaging using computer algorithms. This helps you save more while reducing packaging waste by a significant level.

8. Effective packaging encourages repeat business.

Every eCommerce business knows that recurring customers are a big business asset. With so many brands and products out there, having customers that are loyal to your brand is crucial to business growth.

The fact is, in the eCommerce business, there are only a few reasons that will make a customer stick to your brand, and packaging is one. Packaging plays an important role in your fulfillment plan. A survey reported that 51 percent of customers will not buy from a brand again if the experience they had with them is poor.

Premium or high-quality packaging can even double your sales by creating loyal customers out of every new buyer. Once customers are satisfied with the way you package your product, the tendency that they will buy from you increases significantly.

Remember, more loyal customers means more business patronage and recommendations.

Conclusion

Packaging is one key area every business should invest in. It is crucial for your brand’s image, publicity, identity, and growth.

Take some time to consider how you can improve packaging for your products. With a little bit of effort, you could be well on your way to doubling your sales.

This post is by Haneya Zuberi at Arka, a custom packaging design company.

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