Tips
Packaging costs for online stores: what boxes, filler and tape really cost
What goes into the cost of packing an online order, why an oversized box raises postage through volumetric weight and how to work out your own cost with an illustrative example.
A box for a few cents, a roll of tape, some paper as filler. Nothing worth losing sleep over. Yet a store that ships hundreds of parcels a month leaks money on packing, and the biggest part of it is not on the packaging invoice.
Below is what the cost of packing is made of, where it overflows and how to work it out for your own store. For materials and one-off prices see the packaging supplies guide.
What packing costs are made of
Packing has five cost items, and only the first three appear on your packaging supplier’s invoice. You pay for the rest elsewhere.
- Box. The biggest material item and the one that falls fastest when you buy in volume.
- Void fill. Paper, bubble wrap, air pillows. Prices vary, but how much you stuff into each parcel matters more than the price of the roll.
- Tape and label. Small, but it multiplies.
- Labour. Folding the box, packing, sealing. Across hundreds of parcels every extra minute shows.
- Oversize surcharge. Carriers do not just count kilos; they bill the higher of actual and volumetric weight.
Volumetric weight: why a €0.50 box makes shipping dearer
Volumetric weight is calculated from dimensions: length × width × height in centimetres, divided by a divisor. 5,000 is often quoted, but carriers set their own rules, so check the divisor in your terms. You then pay for the higher of the two numbers, actual or volumetric weight.
The difference shows on light goods. The figures below are an illustrative example with a divisor of 5,000; a different divisor shifts the result. The product weighs 1 kg.
| Box (illustrative example) | Dimensions | Volumetric weight | Billable weight |
|---|---|---|---|
| Big box “just in case” | 40 × 30 × 20 cm | 4.8 kg | 4.8 kg |
| Box that fits the goods | 30 × 20 × 10 cm | 1.2 kg | 1.2 kg |
The same 1 kg product is billed as either 4.8 kg or 1.2 kg. That 3.6 kg gap can outweigh the price of the box and filler combined, depending on the carrier and price band. To see the figures for your own dimensions, use the volumetric weight calculator.
Work out the cost of one parcel
All prices in the table are illustrative only. Use quotes from your own suppliers and the time packing really takes. The range reflects that boxes bought in bulk cost far less than boxes bought one at a time.
| Item (illustrative example) | Per parcel |
|---|---|
| Box | €0.50 |
| Void fill (paper or wrap) | €0.15 |
| Tape | €0.06 |
| Label | €0.04 |
| Labour (3 minutes at €8/hour) | €0.40 |
| Total packing | €1.15 |
At 500 parcels a month that is about €575. Saving five cents per parcel means €25 a month, which is not much. The stronger lever is box size, because postage changes by tens of cents and on every single order.
Where to save
- Standardise sizes. Three or four box sizes cover most ranges, the warehouse is tidier and a wholesaler gives a better price on larger quantities of one type.
- Pick the box tightly. Fill the gap around the goods with filler, not with another box. 5 to 10 cm of spare room for filler is enough.
- Fill according to the contents. Fragile items need fixing in place (see how to pack fragile items); a T-shirt needs no paper at all.
- Reuse what arrives. Filler from your own incoming deliveries is free. Second-hand boxes lose strength, though, so use them for light goods.
- Time your packing. Half a minute per parcel is hours of labour a month across hundreds of orders.
How to start
- Go through your last 50 orders and note which box each used and what the goods weighed.
- For each parcel compare actual and volumetric weight using your carrier’s divisor.
- Find parcels where volumetric weight is far above actual weight. That is where a smaller box pays off.
- Pick three or four box sizes and ask two suppliers for a price on regular orders.
- After two months compare the average billable weight per parcel.
The free-shipping threshold is worked out the same way; see free shipping threshold strategy. More on shipping for online stores is in the e-commerce section.
Quick facts
Packaging costs for online stores: what boxes, filler and tape really cost
schedule Updated
Summary
Packing an online order costs more than the box and the tape. On top of materials (usually cents to low single euros per parcel when bought in bulk) come the labour of packing and, above all, the surcharge for an oversized box: carriers bill the higher of actual and volumetric weight, and volumetric weight comes from the dimensions (length × width × height in cm divided by 5,000 is a common divisor, but carriers set their own). The biggest savings come from standardising on three or four box sizes, choosing the box that fits the goods tightly and filling according to what is inside rather than by habit. The illustrative example in this article shows a box with 3.6 kg more volumetric weight can cost more in postage than all the packaging material together. Check real prices and the divisor in your carrier contract and with your packaging supplier.
- What packing is made of
- box + void fill + tape + label + packing labour + surcharge for volumetric weight
- Volumetric weight
- length × width × height (cm) ÷ divisor; 5,000 is a common divisor, carriers set their own
- What the carrier bills
- the higher of actual and volumetric weight
- Biggest saving
- a tight-fitting box and three or four standard sizes instead of dozens
- Material prices in the example
- illustrative only; use quotes from your own suppliers
- DHL, UPS and FedEx express
- a 5,000 divisor is commonly quoted for international express, but check current terms