Are There Any Hidden Packaging Costs? Here’s What You Need To Know


The brands and businesses are incomplete without the right packaging, and reducing the packaging costs is one of the sufficient ways of increasing the business’s bottom line. However, it can be challenging to identify the hidden costs that are negatively impacting the business revenue and profits. Ranging from spiking distribution costs to ineffective and insufficient storage, there are various factors that you must evaluate if you are trying to cut back on the packaging costs. In this article, we are sharing the different types of hidden costs associated with custom printed boxes wholesale!

Ineffective & Insufficient Storage

If you are operating a business at a larger scale, it’s needless to say that creating the warehouse-level space can be challenging and financially draining. It doesn’t matter if you are operating a multi-national business or a small-scale business; you obviously have to rent the floor space for storing the packaging supplies and related equipment. For this reason, if you are efficient with the warehouse floor, you will have to spend less to run the business.

This is because when the storage is optimized in the warehouse, it will allow you to meet the increasing product demands. On the other hand, when you are trying to avoid spending too much on storage, ensure that you’ve optimized the warehouse with the racking system and other methods of organizing. In addition, you can use foam and bubble wrap for wrapping compact products, such as paper and air pillows. Moreover, you can widen the space by designing automated systems and workstations that helps up-keep the packaging functions.

Damage Costs

It doesn’t matter how secure and efficient you are in the functions, there will be damages, and there is no way to eliminate the damages completely. That being said, the damage-related costs have become a driving force in increasing the packaging costs. For instance, you can be hit by the ever-increasing refunding costs, packaging costs, and sending out new products for replacement will also increase the costs. This is one form of hidden cost that keeps adding up whenever you are dealing with the selling of hundreds and thousands of products, which means the business’s bottom line will be impacted.

You need to ensure that the products are always secured and protected with high-quality and sturdy materials to prevent damages. Similarly, you can select the monitoring equipment, such as tilting indicators and impact labels to ensure accountability along with the distribution. Keep in mind that damaged products not only increase the costs, but also creates a negative brand image for the business, which is an additional cost and loss for the business. For this reason, it is crucial to manage the product damage costs and make sure they are reduced by multiple folds.


When it comes down to product distribution, it tends to be almost 50% of the supply chain costs, which means it’s one of the most expensive parts of the business process. It’s evident that the weight and size of the packaging can directly increase the transportation costs, which directly influences the distribution costs. For this reason, you have to make smart business decisions about the packaging design, and it will help reduce the distribution costs and spending.

To begin with, you have to select the boxes of the right size, and it will help limit the finished size of the product. In addition, you need to ensure the box’s weight is minimal by opting for void filling materials. These materials are lightweight and provide protection to the products to prevent the chances of product damage. You need to take some time to think about the packaging design, and it will empower you to regard to the business’s distribution strategy. As a result, the handling costs and shipping costs will be reduced.


If you are running a business, it’s impossible to think that you don’t know about downtime. To illustrate, downtime is defined as the time period where a person or equipment is not operating to manage the business processes, fix the mechanical errors, and work on other maintenance tasks. The issue increases even more when downtime is wasted not packing the products, which can negatively impact productivity. Fortunately, downtime can be reduced to improve productivity and output and enhance one’s ability to keep up with the demands.

For reducing the downtime at your business, you need to make sure that you’ve set the correct settings on the equipment and check the machines to ensure the settings haven’t changed. This will ensure that machines are running smoothly without any errors. For instance, you must check the stretch film isn’t tearing due to tension. In addition, you can buy the materials in longer rolls to reduce the time period needed to reduce the changing time for materials. All these factors will eventually result in improved productivity and result in higher profits.


Whether you believe it or not, the administrative costs are too high, and they keep adding up over the course of time. This means that the resource costs and tracking costs will increase. Moreover, when you coordinate different options and don’t focus on the prioritized tasks, it will result in higher administration costs. All these factors will increase the logistics costs. So, if you want to reduce these costs, you need to focus on these points.

For instance, you can increase how many people you’ve to improve the productivity standards and enhance the logistics. In addition, you can implement the management software to ease product and business tracking. Not to forget, you’ve to optimize the business solution to reduce logistics-related costs.

To conclude, running a business is no piece of cake, and handling the finances could be termed as the most difficult business function. With this article, we talked about different hidden costs associated with the business and warehousing and some ways to optimize the costs. So, if you need any more help, you can get in touch with the management team to ensure streamlined functions.

Previous articleInvestment Scammers Targeting Thunder Bay Residents
Next articleWinnipeg Police Arrest Two for Kidnapping and Attempted Murder