There’s a version of the packaging strategy that most British companies follow: order what worked last time, in roughly the same quantity, from the same supplier. It is low effort, low risk and quite expensive.
For companies that ship physical products, packaging isn’t the most exciting part of the process. There is rarely a line in the board report. In terms of procurement priority, it falls somewhere between stationery and raw materials. But when you actually look at the numbers on packaging, they are often large enough to warrant significantly more attention.
Where the costs are
The obvious cost factor for packaging is the box itself. However, for most companies, box costs are only part of the bigger picture.
The dimensional weight fees charged by couriers mean that box volume has a direct impact on freight costs. Carriers calculate shipping costs for light goods based on the space a package takes up, rather than its physical weight. A box that is 25% larger than necessary may increase the courier fee for that package by a proportional amount. With thousands of daily shipments, this premium adds up quickly.
Filling the gap is the second hidden cost factor. Any oversized box must be filled, and that filling, be it tissue paper, bubble wrap, or crumpled kraft paper, incurs acquisition costs, storage costs, and application labor costs. Filling voids also increases the weight of packages, adding to freight costs.
Then there are returns. Damaged goods in transit typically have two causes: inadequate padding and excessive movement in an oversized box. The right packaging size in combination with suitable interior fittings for fragile goods reduces the damage rate. Fewer damaged goods means fewer replacements, fewer customer service interactions, and fewer negative reviews.
The EPR factor
The UK’s extended producer responsibility regulations, which came into force in 2024, have changed the economics of packaging for companies above the threshold. Under the EPR, companies that bring packaging into the UK market are financially responsible for the costs incurred in collecting and recycling that packaging at the end of its life. The fee is calculated based on the weight of the packaging placed on the market.
This creates a direct financial incentive to use less packaging material. A company that sizes its corrugated boxes to size, eliminates unnecessary void fill, and switches to lighter-weight boxes where structurally appropriate will pay lower EPR fees and save additional material and freight costs.
For companies that supply large retailers, packaging sustainability performance is increasingly being integrated into supplier scorecards. Major supermarkets and platform retailers have publicly committed to packaging reduction targets and expect their supply chains to contribute to these targets. A packaging specification that cannot demonstrate recyclability and material efficiency becomes a commercial liability.
What customized corrugated cardboard actually means
There is a misconception that custom packaging is expensive and only accessible to large companies. The reality is more nuanced.
Custom corrugated boxes, tailored precisely to a specific product or line of products, require an upfront investment in design and tooling. This investment is typically modest, running into hundreds of pounds for a simple box design. It pays for itself quickly through ongoing savings in materials, void filling and freight.
The break-even calculation is straightforward. If a correctly sized box saves 15p per parcel on freight alone and a company ships 2,000 parcels per week, the saving is over £15,000 per year. The tool investment pays for itself within a few weeks.
Fencor Packaging is one of the UK manufacturers to offer design support as part of the specification process, meaning the technical knowledge to optimize a box for both structural performance and cost effectiveness does not need to be in-house. This significantly lowers the hurdle for companies that do not employ a packaging engineer.
Sustainability as a business differentiator
The UK consumer base is increasingly aware of packaging, and not just in an abstract way. Reviews that mention packaging are common across all eCommerce categories. Social media posts about overpackaged products reach a large audience. Unpacking content on YouTube has turned packaging into a literal viewing experience for some product categories.
Companies that get their packaging right benefit from positive mentions that they didn’t have to earn through advertising. Companies that get it wrong create negative sentiment that is visible and persistent. The asymmetry is remarkable.
The use of FSC-certified corrugated cardboard, the elimination of single-use plastic from shipping packaging and the continuous indication of recyclable materials are not just a question of compliance. It’s a brand statement. For companies in categories where environmental friendliness is important to shoppers, this is increasingly a commercial imperative.
Present the case internally
Getting packaging on the agenda within a company often requires translating the opportunity into the language that decision makers will respond to. The freight cost savings can be modeled precisely. EPR liability is a real number. Loss ratio reduction is a loss history that needs to be analyzed.
The combination of these factors typically creates financial arguments that are difficult to argue against. The investment requirement is low. The payback period is short. The ongoing savings increases every year.
For UK companies looking for cost reductions that do not require staff cuts, loss of quality or renegotiation of contracts, the packaging specification is one of the most productive starting points. The savings are real, the process is manageable, and the environmental benefits are real.
The conversation begins with a specification review. Most packaging manufacturers carry out a free inspection. The question is why more companies don’t have it.
