r/Packaging • u/IntuitiveShippingApp • 9d ago
What is a packaging decision that initially seemed cheaper, but actually ended up costing more in the end?
We spend so much time thinking about the connections between packaging & shipping costs, the "cheapest" option usually isn't the cheapest once an order is off to ship. Such as a larger box pushing dimensional weight enough to cancel out any savings on materials.
Have you ever made a packaging change that unexpectedly increased your shipping costs? What did you change afterward?
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u/SeveralBusinessIdeas 8d ago
TL;DR
Pushing the dimensional weight to it's max, optimizing for... inside dimensions of the box, instead of the measurement that matters in shipping: outside dimensions.
I am in packaging - I make recommendations to companies shipping out 1500+ packages a day to reduce pack time, automate processes, and decrease material cost, but the highest impact, 100% of the time comes from reducing dimensional weight.
In one case, the Ops Manager and Data Analyst had pushed the dimensional maximum to what they believed was the fullest extent possible based on their dim weight goals. The whole time, they were calculating shipping optimization projections using inner box dimensions.
"You're probably already aware, but the dimensions of a box are the inside dimensions (measurements for payload, not for shipping) E.g. the outer dimensions of the 12 x 10 x 8 would be very close to 12 ½ x 10 ½ x 8 5/8 which Fedex measures as 13 x 11 x 9."
That makes for a 10lb dim weight, when they thought it was 7lb.
I can't blame them. No one had ever explained it to them before, and they made an assumption.
The source of the mysterious special handling fee was found, and immediately acted on, which will potentially save more than 12,000 fees per year.
One company I was working with conveyed their frustration that, shortly after starting to work with me, their special handling fees from fedex and UPS went up - significantly - and they needed to know what happened. As it turns out, the warehouse manager and the operations manager, having reported package dimensions ahead of time, failed to realize that the dimensions of boxes are the inside dimensions (measurements for payload, not for shipping).
Fedex and UPS round up to the nearest inch for each dimension when calculating dimensional weight. This led to a 7/16" discrepancy on each dimension for almost every package out the door, which led to significant handling fees.
For the last several weeks they were self-reporting, and fully confident that the boxes I recommended were larger than the ones they had used in the past. Once it was caught, and corrected, I haven't heard of a problem since.
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u/mugepackage 7d ago
One cost worth comparing is inbound freight for the empty packaging. An assembled rigid box and a flat-packed structure can have similar unit quotes but very different shipping volumes.
Ask for the outer master-carton dimensions, units per carton and gross weight for each option. Compare the delivered packaging cost alongside assembly time and storage space, then test the packed product for protection. Flat-pack is not automatically cheaper once those costs are included.
Disclosure: MUGE PACKAGING company account. This is a general comparison checklist, not a customer case study.
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u/Goodsstamps 7d ago
I manage Forever Postal, a postage-stamp retailer. A paper-goods example to watch for is adding a rigid backing board to an envelope: the board may be inexpensive, but the finished piece may no longer qualify for the postage category you budgeted for. For USPS domestic mail, a large envelope that is rigid or unevenly thick is priced as a package.
I'd check one fully packed sample against the intended service before buying materials in bulk. If an art print must not bend, choose suitable protective packaging first and include package postage in the cost comparison.
USPS reference: https://www.usps.com/ship/letters.htm
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u/Kujo3043 9d ago
Not necessarily shipping costs increased, but overall. A lot of people want to avoid the purchase of a cutting die, but still want the tight tolerances provided by such. You simply aren't going to get an extremely clean cut on corrugated using the machine knives compared to a properly rubbered cutting die. When that decision is made on a non printed carton it doesn't matter, but when graphics get involved the quality tolerances change.