Packaging For Ecommerce vs. Retail

Packaging is a critical element in the delivery process, serving not only as a protective layer for products but also as a key touchpoint for branding and customer satisfaction. However, the requirements for e-commerce and retail packaging differ significantly due to the distinct challenges each channel presents. From safeguarding products to creating memorable customer experiences, businesses must navigate these differences to stay competitive. Here’s how. 

Balancing Protection and Practicality 

One of the most significant distinctions between e-commerce and retail packaging lies in product protection. E-commerce packages must endure extensive handling, long-distance transportation and exposure to various environmental conditions. To address these challenges, businesses often rely on sturdy corrugated boxes, impact-resistant inserts and void fillers like air cushions or paper stuffing to shield items from damage during transit. The focus is on durability and functionality so that products arrive intact regardless of the journey. 

In contrast, retail packaging prioritizes visual appeal and ease of handling within a store environment. While it still provides basic protection, it’s designed to stand out on shelves and capture consumer attention. Lightweight materials and sleek designs are common, allowing packaging to emphasize branding while maintaining practicality for in-store displays. For example, an elegant cardboard box with bold visuals works well for retail shelves but would not withstand the physical demands of e-commerce shipping. 

The Role of Branding and Presentation 

Branding plays a crucial role in both channels but manifests differently based on customer interactions. In e-commerce, packaging is often the first physical connection a customer has with the brand, making the unboxing experience an essential marketing tool. Custom mailer boxes, personalized thank-you notes and branded tissue paper can be used to elevate this interaction, turning it into a memorable moment that can lead to social media shares and increased brand loyalty. 

For retail, packaging must catch the eye amidst a sea of competitors. Bold colors, unique structural designs and clear product information are prioritized to help customers make quick purchasing decisions. Retail packaging often conveys the product’s benefits at a glance, standing out on crowded shelves. 

Efficiency in Fulfillment and Delivery 

Efficiency is vital in both e-commerce and retail packaging as well, but the focus varies depending on the channel. E-commerce packaging must prioritize space optimization to reduce shipping costs and maximize the number of packages transported per shipment. Lightweight, right-sized boxes or padded mailers are commonly used to streamline logistics while maintaining protection. Automating processes with tools like automatic conveyors can further enhance efficiency, allowing fulfillment centers to handle high volumes of orders quickly and accurately. 

Retail packaging, on the other hand, focuses on storage and display optimization. Products need to be shelf-ready and easy to handle for store staff. Packaging must balance durability for bulk shipping with the ability to be displayed attractively upon arrival. Tamper-evident features and stackable designs often play a key role in retail packaging strategies. 

Addressing Customer Expectations 

Consumer expectations are a driving force in packaging decisions. E-commerce customers demand their products arrive in perfect condition with minimal waste. Sustainable packaging options, such as recyclable materials and biodegradable mailers, have become increasingly important.  

Conversely, retail customers are drawn to packaging that reflects quality and innovation. Reusable or multifunctional packaging designs can add value, enhancing the perceived worth of the product. 

Why Understanding Packaging Differences Matters 

For logistics and supply chain professionals, understanding the distinct demands of e-commerce and retail packaging is essential for reducing costs, safeguarding products and enhancing customer satisfaction. By tailoring strategies to the unique needs of each channel, businesses can streamline fulfillment processes and maintain operational efficiency. 

When done right, thoughtful packaging design can transform a functional necessity into a powerful tool for success, enabling businesses to thrive in today’s fast-paced and competitive marketplace. 

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Rich Analytics Tool to Optimize Fulfillment Performance

Manhattan Associates (NASDAQ: MANH), a global leader in supply chain commerce, today announced the availability of Postgame Spotlight, a capability brought to life through a real-time dashboard, that highlights inventory allocation and placement decisions that limit order fulfillment performance. The solution provides real-time scenario analytics and actionable recommendations that can be shared with inventory planners to eliminate inventory deployment mistakes and reduce order fulfillment costs.

Recent advancements in online commerce and the introduction of new omnichannel fulfillment options are straining traditional supply chains. Modern order management systems strive to overcome the additional complexity and optimize order fulfillment with advanced sourcing logic, but physical constraints, such as poor initial inventory placement, often result in suboptimal routing choices and increased fulfillment costs.

Part of Manhattan Active® Order Management, Postgame Spotlight works by calculating the percentage of orders fulfilled from the best locations and identifies the factors that forced the system to divert orders to alternate locations. The solution examines the factors that negatively influence fulfillment efficacy — including the placement and levels of the required inventory, store resource capacity, and discrepancies in store service levels – to uncover improvement opportunities.

“Postgame Spotlight is a great companion to the Fulfillment Insights capability Manhattan introduced last year. While Fulfilment Insights helps retailers compare their performance to their peers, Postgame Spotlight helps look inward to quickly pinpoint opportunities to enhance inventory performance and profitability,” said Amy Tennent, senior director of Product Management for Manhattan.

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£1.5 Billion in Christmas Gifts to be Returned

Manhattan Associates Inc. has announced its findings from a new study revealing that British consumers are expected to return £1.5 billion worth of unwanted Christmas gifts this year, highlighting the significant logistical and financial challenges facing retailers in the post-holiday period. Managing this deluge of returns efficiently and effectively is critical to maintaining both profitability and customer satisfaction.

From wrapping to returns: the journey of unwanted gifts

Unwanted gifts start with good intentions but miss the mark. From ill-fitting clothing to duplicate gadgets, gift returns initiate a complex reverse logistics process, with an estimated 67 million presents expected to be returned this year. This puts immense pressure on retailers, warns Craig Summers, VP Northern Europe & MEA at Manhattan Associates. “Efficient returns management is vital during peak holiday season as businesses balance the need for streamlined processes with maintaining customer satisfaction.”

The research found that:

· Almost 23% of Brits exchange unwanted gifts for something else
· 21% donate unwanted gifts to charity shops
· 19% regift unwanted presents to new recipients
· 17% store unwanted gifts away, often in cupboards
· 12% return unwanted gifts for a full refund
· The most common Christmas gifts returned include clothing (42% of consumers have returned), shoes/footwear (21%), cosmetics (16%) and jewelry or watches (15%)

The returns challenge: why are shoppers so frustrated?

The returns process is a common source of frustration for consumers, with 39% citing long refund waits and 33% pointing to unclear policies as major pain points. These issues have real consequences for brands, with 40% of consumers saying they would avoid a retailer after a difficult returns process. “A seamless and customer-centric return experience is essential for building trust and fostering long-term relationships,” adds Summers.

This challenge is particularly pronounced among Gen Z shoppers, who returned gifts at a much higher rate (65%) last year than their older counterparts (19%) among those aged 65+. Given Gen Z’s focus on sustainability, brands face additional pressure to not only streamline their returns, but also minimise the environmental impact of the process too.

A balancing act for retailers

Retailers are walking a tightrope. They need to meet customer expectations for easy returns while also managing the significant logistics of processing millions of items which erodes valuable bottom-line profits. As Summers explains, “investing in solutions such as robust reverse logistics and AI-powered customer service, coupled with clear communication and efficient processes, is crucial for retailers navigating this challenge effectively.

“There’s more to returns than software and pound signs though. Retailers need to also consider the emotional aspect of returns. Customers often feel awkward or disappointed when returning gifts, and a smooth, empathetic process can make all the difference in maintaining loyalty and a positive brand experience.”

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Sendcloud acquires Lox to resolve Delivery Issues

Sendcloud, a shipping platform for e-commerce, today announced the acquisition of Lox, an innovator in delivery issue management. This strategic move strengthens Sendcloud’s mission to solve shipping globally by addressing one of the most critical challenges faced by online businesses: the cost and complexity of managing delivery issues.

Managing delivery issues, such as lost, delayed, or damaged parcels, has long been a pain point for e-commerce businesses. In the EU alone, 19 billion parcels are shipped annually, with delivery issues costing businesses significant time and resources. Each claim takes an average of 25 minutes to process, and unresolved issues can inflate shipping costs by 5–10%.

Lox has transformed this process, streamlining the delivery issue process across multiple carriers at one place, enabling businesses to save time, reduce costs, and boost customer satisfaction. Trusted by major brands like Vestiaire Collective, Fairphone and Dafy Moto, it automates both the detection and resolution of delivery issues, cutting claim processing times by up to 80%. This makes it a perfect addition to Sendcloud’s shipping platform, which already empowers 25,000+ businesses to streamline and scale their delivery processes.

“Shipping remains one of the most complex and costly aspects of e-commerce, especially for small and medium-sized businesses striving to compete with industry giants like Amazon,” said Rob van den Heuvel, CEO and Co-founder of Sendcloud. “With Lox on board, we’re equipping businesses to resolve delivery challenges faster and more effectively while reducing cost, ultimately transforming the entire delivery experience for both e-commerce businesses and consumers alike.”

Since its founding in 2020, Lox has helped businesses level the playing field by introducing scalable and efficient delivery issue management. “Joining Sendcloud is a natural evolution of our shared mission to solve shipping globally,” said Dylan Hirsch, Co-founder of Lox. “Combining our expertise in delivery issue management with Sendcloud’s robust shipping platform allows us to amplify our impact, helping online businesses around the world navigate delivery challenges with ease.”

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CIRRO Partners with Loop to Enhance Returns Processes

CIRRO Fulfillment, a leading global e-commerce fulfillment provider, announces the partnership with Loop, the leading returns and reverse logistics platform. This collaboration aims to significantly enhance the returns process for retailers and brands. With the integration of Loop’s automated portal, customers can effortlessly initiate returns, request exchanges, or secure refunds. This streamlined process reduces manual tasks, making returns management faster and more efficient, while enhancing the customer experience. The partnership also helps retailers and brands save time and reduce costs related to reverse logistics, allowing them to focus more on business growth.

Hong Li, Global Head of Sales at CIRRO Fulfillment, said, “We are glad to accomplish this integration between CIRRO Fulfillment and Loop as part of our shared commitment to delivering an exceptional customer experience. This enables CIRRO Fulfillment to seamlessly manage returns through Loop, while Loop users gain access to our extensive global facilities and returns services.”

“We’re beyond excited to be partnering with the team at CIRRO Fulfillment, as our mutual merchants will now be able to combine the power of Loop and CIRRO Fulfillment to ensure a smooth and efficient experience in both their forward and reverse logistics,” said John-David Klausner, SVP of Business Development and Partnerships at Loop.

Together, CIRRO Fulfillment and Loop offer a comprehensive solution that enhances both operational efficiency and customer satisfaction, transforming returns management from a burden into an opportunity for business improvement.

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English Channel Supply Chain Delays threaten Christmas

English Channel Supply Chain Delays threaten Christmas

As businesses take steps to boost supply ahead of the busy Christmas shopping period, research from Vinturas, a global supply chain interoperable network solution, found that the English channel is the region where the most UK based businesses experienced those delays and lost shipments over the last year.

The research, conducted in partnership with Censuswide, surveyed 400 global business leaders with decision making responsibility for shipping and international logistics and found that over 13% had shipments which were ‘significantly delayed’ over the last year. When speaking to businesses based in the UK, over two fifths (43%) said that they experienced delays in the English Channel, followed by the Suez Canal (40%) and the Panama Canal (33%).

Concerningly, UK based businesses surveyed said that they had also lost an average of 11% of shipments the last year due to ongoing supply chain disruptions, with the English Channel also scoring top for lost shipments as 39% of businesses polled said that losses occurred in the region. This comes as 70% of UK businesses said they were concerned about regulatory problems or compliance violations in their supply chains.

As businesses enter peak shopping period, the research reveals that two fifths (40%) of UK companies said blind spots and inefficiencies in supply chain data have created difficulties predicting demand or inventory levels. What’s more, over one in three (35%) UK business leaders said the stress of managing external supply chain shocks is a key pain point their business faces when it comes to logistics.

Supply chain blindspots harming businesses

However, despite the unpredictability of global shock events causing delays to shipments, UK business leaders also point to internal problems that continue to hamper logistics performance. 98% of business leaders said that blind spots or inefficiencies have had some impact their business in the last year. When asked to evaluate the reasons for supply chain difficulties, 30% said that they had difficulty accessing real-time logistics data from which they could make decisions. A further one in three (33%) said they lacked integration (interoperability) between different parts of their supply chain.

However, despite many business leaders pointing to issues around access to accurate data or the ability to integrate supply chain systems, the research showed that 16% of UK companies still rely on paper-based processes (e.g. manual logs and forms) for their supply chain operations management. To help overcome some of these issues, UK business leaders state that they plan to increase investment in supply chain technology over the next year by an average of 8.2%.

Supply Chain Delays threaten Christmas

Ronald Kleijwegt, CEO, Vinturas commented: “The English Channel is naturally the major artery for UK trade overseas. It is therefore shocking to see it emerge as a hotspot for delays, especially given the scale of the recent problems in other regions like the Red Sea or Panama Canal. While there are several factors at play, it’s clear that regulatory compliance violations continue to be a major concern for businesses that rely on overseas trade. And with the busiest shopping season around the corner, these challenges are likely to be even more pronounced over the coming weeks.

Of course, regulatory problems due to Brexit and other factors have been a long-running saga and though the global supply chain issues we’ve seen over the past year could not be foreseen, businesses cannot operate without being prepared for this kind of volatility in 2025.

When it comes to managing supply chain ecosystems, organizations must set themselves up for success, getting the basics rights and creating resilience to mitigate losses. As we navigate an increasingly complex and volatile world, supply chain interoperability, actionable visibility, security and investment in resilience, are no longer optional but a fundamental part of business operations that cannot be ignored.”

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DHL eCommerce Announces New Management

DHL eCommerce UK has made two new appointments to its management team, drawing on experience from the retail industry to further align DHL’s services to the evolving eCommerce market.

Julian Harrison joins as CIO, to deliver a technology and data-first strategy to support growth across all areas of the business. Julian has spent 12 years in retail and FMCG businesses including senior tech roles at ASOS and Marks and Spencer. He also held the role of Head of Technology, Fulfilment and Enterprise at Lovehoney where he was responsible for all core operational technology systems.

Working in close collaboration with the IT function, Laurence Sugars takes on the role of VP of Product and Strategy. Laurence joins from Marks and Spencer where he was Senior Head of Product for Food, and prior to that held senior roles at FarFetch and Tesco. He will be responsible for expanding the services DHL offers to consumers and retailers including features within the DHL eCommerce app as well as the Out of Home network.

Both will report to Stuart Hill, CEO, DHL eCommerce, who said “We’ve got significant growth plans so I’m delighted to expand an already strong management team with people who share our ambition and vision for the business and who bring deep retail expertise. Julian and Laurence give us real balance as a board and will enable us to evolve the eCommerce proposition in line with the changing needs of both retailers and shoppers.” 

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New Logistics Contract for Homeware Ecommerce

Online Home Shop (OHS), one of the UK’s fastest growing e-commerce brands in the homeware sector, has announced a strategic partnership with DHL Supply Chain, one of the world’s leading logistics providers.

This partnership will leverage DHL’s Fulfilment Network – which offers on-demand fulfilment services for small and medium sized e-commerce businesses – to optimise Online Home Shop’s supply chain and meet increasing customer demand. Through this collaboration, DHL Supply Chain will manage warehousing, inventory management, and order fulfilment, ensuring exceptional service for customers across the UK from the point of order.

A family-owned business based in Greater Manchester, OHS continues to increase sales at over 40% per year, with plans in place to continue to accelerate this growth journey. The new partnership with DHL will allow the company to pursue further expansion and scale its operations efficiently. Over recent years, the retailer has increased its range and expanded into furniture. With DHL offering expertise in this area, the partnership will provide shipping solutions for OHS and support further category extension.

Moshe Cohen, CEO of Online Home Shop said: “The business has seen impressive growth over the last few years, and we have ambitious plans for the future, but to achieve these, it is vital for us to have a trusted logistics partner who can support and enhance our operations. DHL will help to provide the advanced infrastructure and expertise we need to ensure our products are delivered quickly and reliably, particularly as we approach Christmas and Peak.”

Natalie Frow, MD Retail of DHL Supply Chain UK&I said: “We are delighted to partner with Online Home Shop, it’s a dynamic and rapidly expanding business at an exciting stage of development. The DHL Fulfilment Network is specifically designed to provide scalable and flexible logistics solutions for growing e-commerce businesses, and we are confident and ready to support Online Home Shop in its nationwide expansion.”

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Surge Pricing on Shipping Dampens Profits of Logistics Firms

Surge pricing on shipping this Black Friday could dampen the profits of thousands of warehousing and logistics firms across the UK. New figures reveal that almost a third of firms in the supply chain sector (32%) saw their carrier costs jump in November last year compared to the previous month.

In the latest report from order fulfilment software provider, Mintsoft, a quarter reported that these costs grew by nearly 25% during Black Friday Week – from an average of £3.50 to £4.37 per item. Carriers typically apply a peak season surcharge between mid-November and early January to manage the high demand over Black Friday, Christmas and the January sales. But with many consumers expecting free or low-cost shipping on purchases, retailers and fulfilment companies need to minimise these costs, otherwise they’ll have no choice but to absorb the price hike and take the hit on their margins.

Beth Chapman, Managing Director at cross-border delivery service, Starlinks Global, explains more:
“The bad behaviour of profiteering from some carriers that goes on during the peak season is frustrating. Retailers are struggling with price pressures and we should be working together to grow volume in a sustainable way. Not hiking prices as soon as it turns October 1st.”

Her comments were echoed by Ruhksar Ahmed, Director of third-party logistics provider, Green Fulfilment: “Retailers should be able to rely on their fulfilment partners and carriers to ensure they don’t face huge price increases during peak season. In anticipation of our client’s increased order volumes, we negotiate with our carrier partners to minimise price increases and guarantee service levels during the busiest e-commerce period.”

Higher shipping costs are not the only pressure facing supply chain firms, according to the research.
Just over 90% take on temporary staff to help them manage seasonal demand but nearly a fifth (18%) say that they struggle to fill these positions.

Data from Mintsoft suggests that firms using its software processed 1.2 million orders last Black Friday, and saw a 35% jump in orders dispatched.

Now its experts predict that order volumes could jump by 14% this year – following a 17% rise in 2023 – and firms may see an increase in orders processed this year too. Being able to process them quickly and accurately is a top concern for operators.

Around a third experienced stock management problems last year, and 58% experienced a stockout. Despite this, around 17% only start preparing for Black Friday less than three months before the event.
Claire Carter, Managing Director of ERP at The Access Group, the parent company of Mintsoft, said:
“Although peak season surcharges are nothing new, they certainly add to the cost pressures already impacting small and mid-sized firms. We’d urge firms to review the contracts they have with all of their carriers and strengthen their partnerships with them to ensure they’re getting the best deal, as well as timely collections and deliveries to meet consumer’s expectations.”

She added: “As our retailers and fulfilment partners know, the more technology they have and the automation it offers go a long way to plugging labour gaps, ensuring speed is met with accuracy, and offsetting higher costs, including shipping. Without the right combination of software and data intelligence, identifying the opportunities for peak efficiency can be difficult – it’s never too early to prepare your tech-stack for busy periods.”

Dave Pickburn, CEO of Stream, a logistics software provider, added: “Increased order volumes are always welcome, but surges, like those during peak season, bring significant challenges for retailers and 3PL providers, especially when those orders may increase by as much as 35% during peak season. Having the right software in place to automate as many functions as possible, means that businesses can handle those surges without adversely affecting the operation. Let the software deal with as many of those repetitive, mundane tasks such as order processing, inventory management, invoicing and dispatch. Retailers and 3PL providers can then deal with the exceptions and outliers, to deliver a seamless experience for their customers.”

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How to Overcome Uncertainty for Seamless Customer Delivery

For all businesses, especially in the retail sector, the threat of uncertainty casts a dark cloud over the customer delivery experience, leading to doubts and anxieties at various touch points along the delivery journey. Whether it’s the unpredictability of delivery service, or the lack of communication during critical moments, uncertainty will impact how customers perceive and interact with a brand.

Andrew Tavener (pictured), Head of Marketing, Descartes, believes that it is crucial for retailers to understand why uncertainty over deliveries affects consumers and how to implement strategies that mitigate its negative effects. This is essential for businesses that are aiming to foster long-term customer loyalty and success.

Understanding uncertainty in the customer delivery experience

Uncertainty in the customer delivery process encompasses a range of factors such as vague delivery timelines, missed delivery windows, or unreliable communication regarding shipment status. All of these factors damage the customer’s experience and erode trust in the brand, losing potential future sales. In fact, Descartes’ recent home delivery research found that 67% of customers experienced a delivery problem over a three-month period.

The next factor contributing towards uncertainty in the delivery journey is communication relating to any arising issues. Inadequate communication channels, delayed responses to inquiries, or lack of updates during critical moments of the home delivery process will leave consumers feeling neglected and undervalued. This has led to 63% of customers in 2024 taking some form of negative action against the retailer or delivery company following a problem with a delivery.

How to fix uncertainty in customer delivery experience

One of the most frustrating experiences for a customer is feeling trapped while waiting for a delivery that could arrive at any time during the day. This uncertainty can disrupt their plans and cause frustration. A better approach for businesses would be to invest in processes and solutions that help to alleviate this uncertainty and ensure that a positive customer experience is created and maintained throughout the purchase and the delivery process. Here are just a few tactics retailers could focus on to help them minimise customer uncertainty and improve the delivery experience:

• Clear Communication

Setting expectations that can be met and clear communication are the first things to consider when looking to deliver a seamless customer experience. This is because it enables your business to provide customers with clear, accurate, and concise delivery information at every stage of the journey to set expectations, keep them appraised of progress and reduce customer anxiety.

• Appointment Booking

An effective delivery appointment booking tool will ensure that delivery cost, speed and incremental service options are transparent and easily accessible, allowing customers to make the most suitable choice and have a definite delivery time. Industries such as furniture and building materials rely on appointment-based scheduling. Uncertainty regarding appointment availability, confirmation, or cancellations will lead to frustration and dissatisfaction among customers.

• Engage Through Execution

An initial email to let a customer know what date you’ll be arriving is no longer good enough. Retailers must proactively communicate the status of customer orders throughout the delivery process (e.g. staged at warehouse, out for delivery, the next stop, etc.) including the original delivery plan and estimated time of arrival (ETA).

• Proactive Problem-Solving

Customers do not expect perfection and resetting expectations is essential in maintaining good customer experience. Using real-time GPS location data and dynamic delivery route progress/ETA calculation anticipate and address potential uncertainties. Proactively communicate ETA changes to customers and corrective actions to be taken if there are unforeseen delays.

• Feedback Loop

And finally, encourage feedback from customers to identify areas of uncertainty and opportunities for improvement. Actively listen to customer concerns and implement necessary changes to enhance the overall experience.

Retailers can take advantage of proven technology to enhance visibility and communication throughout the delivery journey by Implementing an integrated delivery appointment booking, route planning, dispatch and tracking system with customer notification apps to keep customers informed and engaged.
These technologies allow customers to know when to expect their delivery – from the time they place the order and proactively notify them of progress, as well as providing updated revisions to the delivery time. By empowering customers with visibility and control over their deliveries, appointment booking software transforms the customer experience, turning uncertainty into confidence and peace of mind.

There’s no denying that uncertainty can be a significant barrier to providing exceptional customer delivery experiences. So, by understanding the various forms of uncertainty that can arise throughout the customer journey, and by implementing effective strategies to address them, and leverage proven delivery solutions, retailers can instead look to foster trust, loyalty, and satisfaction among their customers with better customer communications. Reducing uncertainty leads to happier customers, stronger brand relationships, and ongoing future success that has a positive impact on the bottom line.

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