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Rethinking Packaging For e Commerce

The document discusses trends in e-commerce growth and how the Covid-19 pandemic has pushed more sales online. It also covers how packaging and the customer experience of opening packages is an important part of e-commerce. Flexible packaging is presented as a sustainable option that can optimize the package size and reduce waste.

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Nelson
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23 views14 pages

Rethinking Packaging For e Commerce

The document discusses trends in e-commerce growth and how the Covid-19 pandemic has pushed more sales online. It also covers how packaging and the customer experience of opening packages is an important part of e-commerce. Flexible packaging is presented as a sustainable option that can optimize the package size and reduce waste.

Uploaded by

Nelson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Rethinking

The e-commerce landscape:


Growth and Covid-19 push

As consumers are avoiding in-store purchases, e-commerce


sales are increasing by 2%
▪ The biggest winner in e-commerce is Food & Personal Care:
− Online sales of groceries are surging
− Hygiene products are in demand both online & offline
▪ Due to the lockdown, the segment Toys, Hobby & DIY has
also benefited second most
▪ Fashion is expected to be the most negatively-affected
category with declining revenues of 6%

1: Global refers to the 150 countries covered in the Statista Market Outlooks (representative of 98% of worldwide GDP) Note: COVID-19
impact on eCommerce revenue is constantly followed and will be updated regularly; thus, forecast subject to change as conditions are
changing rapidly Source: Statista Digital Market Outlook as of August 2020 https://www.statista.com/outlook/digital-markets
The Unboxing experience
The packaging and the unboxing have become so important in the
customer experience and the handling processes that Amazon has
been offering a frustration-free packaging (FFP) option in the U.S. since
2007. In 2018, the online vendor started the incentive program in other
five European countries (France, Germany, Italy, Spain, and the UK).

The requirements for the FFP certification are durability along the
delivery, sustainability, and functionality. These three concepts are also
the essential requirements that paper packaging needs to fulfil and
enhance in the next years.

Additionally, the packaging is part of the shopping experience, which is


often influenced by individuals’ preferences and convictions.
The sustainability of paper packaging is not just an attractive feature,
but also a crucial fact when compared to other materials.
How e-retailers can improve the
open-the-box experience

WE CAN DO IT

WE CAN DO IT

SORRY, THIS IS NOT OUR BUSINESS

WE CAN DO IT
Rigid or Flexible?

Global packaging demand 2017-2022 by material (in U.S. dollars)

+14,8% +20%

Source(s): McKinsey; Smithers Pira


The Perfect Fit

Flexible packaging used for e-commerce simultaneously


enables both the optimization of packaging functionality
and the best use of resources. This has the potential to
provide considerable economic, environmental and social
benefits.

By its very nature, flexible packaging is highly adaptable.


Clever design can drive further sustainability benefits.
These benefits range from appropriate portion sizes and
re-closable solutions that minimize waste.

The flexible and light-weighting package can dramatically


reduce the environmental impacts related to the
packaging materials, but also provides significant
advantages for product storage and transport.
Why choose flexible packaging in
the e-commerce sector
• Perfect flexibility: combination of materials to meet the
customers’ needs
• Perfect product-to-package ratio, reducing excess
packaging and allowing for a range of different
packaging sizes
• Reducing the impact from materials production,
transportation and other impacts along the value chain
• Possibility to use eco-friendly packaging materials
• Parcel volume optimization
• Minimizing waste and ensuring optimized recovery
Retail-shaped packaging
The consumer goods sector accounts for the biggest share of the global
packaging demand, with almost 60 percent. The trends in the retail industry and
the changing purchase behaviours are the biggest growth drivers of the
different paper packaging formats.

By 2025, in Europe, the estimated tertiary(*) paper packaging demand will be


pushed to 4.2 billion metric tons, due to the increase in the e-commerce
penetration rate.

Printing processes in packaging is also a specific step of manufacturing process


which involves the containerboard more than other materials because the
whole packaging surface can be easily used to present the product and display
information.

Over the next years, paper packaging will benefit the most from digital printing.
In fact, this printing process provides more opportunities in terms of cost saving
and product customization. Also, it will integrate better with other Industry 4.0
processes.
*Tertiary packaging: Packaging used to handle, protect or transport a series of product units.
The corrugated boxes used to deliver products from e- commerce are tertiary packaging.
Let's do some clarity

Graphic paper Containerboard


Used for printed media. Graphic Type of paperboard
paper includes newsprint paper, specially produced for the
used for printing newspapers, as manufacture of corrugated
well as other uncoated and coated containers.
printing papers.

Paperboard Corrugated Cardboard


Raw material used to manufacture Packaging made of three
the paper packaging products. It is layers of paper to provide
thicker than normal paper. Boards the required strength
are made from either virgin fibres properties.
or from a mix of recycled and virgin
fibres.
Future of e-commerce
paper packaging, in EU

Estimated consumption
and revenues of
tertiary paper
packaging induced by
e-commerce in the EU
2019-2025

Source STATISTA: Data are calculated based on the price per ton, number of parcels sent, and average weight of a parcel package. The price perton was generated using official CEPI data for
revenue and production of the respective in-scope paper materials. The price was forecast by using historic Eurostat data on the price development for manufacture of paper and
paperboard. The numbers of parcels sent are taken from PostEurope, the official European association of postal operators, and forecast according to the expectations for e-commerce
development. The average weight of a parcel package is based on the 14 most important product groups of European e-commerce.
Sitma’s
Unique Selling Proposition

Eco-friendly Data management and Parcel volume optimization


packaging materials track & trace technologies for truck loading reduction
Our solutions
Fitting all the below industries

SEND US YOUR PRODUCTS,


WE WILL CREATE YOUR OWN SAMPLES
Watch the showreel with
KNOW HOW SUSTAINABILITY
flexible packaging solutions
specifically developed for

E-COMMERCE applications.

INNOVATION

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