Is your packaging ecommerce ready?
Ecommerce
September 10, 2018Reading time: 3 minutes
From the supply chain to points of sale, ecommerce is redesigning the way we interact with consumer goods. That’s why readying your product packaging for ecommerce has never been so important.
From the supply chain to points of sale, ecommerce is redesigning the way we interact with consumer goods. That’s why readying your product packaging for ecommerce has never been so important.
From the supply chain to points of sale, ecommerce is redesigning the way we interact with consumer goods. That’s why readying your product packaging for ecommerce has never been so important.
Owing to today’s ‘instant’ culture, speed and convenience are increasingly important to building brand loyalty. Last year, ecommerce grocery sales in the US alone grew by a staggering $2.4 billion compared to $619 million for brick and mortar, and this is only set to continue. Yet, this need for instant gratification continues to conflict with increased consumer concern about the environmental effects of our convenience culture. Ecommerce is creating opportunity and challenge in equal measure...
In marketing, there is the concept of the Moment of Truth (MOT). This is the moment a customer first interacts with a product – typically on a store shelf – and informs an impression of that product. What ecommerce has created is the Zero Moment of Truth (ZMOT), as coined by Google. This is when a person recognises a need and goes online to gather information on the potential purchase. Their first interaction with the product will likely not involve holding it.
So as ecommerce continues to evolve, what challenges does this supply chain bring?
A challenging supply chain
New points of sale aren’t the only change afoot thanks to ecommerce. In addition to added pressure from consumers, companies also need to navigate additional logistical implications. Ecommerce has transformed the consumer packaged goods (CPG) supply chain that was originally designed for the traditional brick-and-mortar model.
Once upon a time, brands’ main concern was creating eye-catching packaging that would travel safely from warehouse to retailer, to then be purchased and brought home by the consumer. The supply chain was arguably simpler, shorter and more manageable.
Now, the immediacy of ‘adding to basket’ and same-day delivery has resulted in an ecommerce distribution chain with myriad points at which products are handled. Products are often delivered individually to consumers (rather than in bulk to retailers), and may not be in an upright position throughout their journey. With this comes many more opportunities for product damage or failure. Simply put, the traditional supply chain no longer covers all eventualities.
And therein lies the challenge: how do retailers and consumer goods companies transport products quickly, safely and as sustainably as possible? Increasing scrutiny of the sheer ‘amount’ of packaging continues to hit the headlines; brands are under continued pressure to optimise their primary packaging. That is, developing packaging that with minimal material provides protection and a ‘wow factor’ that delivers on that consumer moment of truth.
Amazon is setting ecommerce standards
While not every CPG has technical requirements that necessitate a redesign to ensure ecommerce suitability (temperature, fragility, etc.), there are some products that do: pet food, detergent, pasta sauce and shampoo are just a few examples. This focus on design (and redesign) for ecommerce is an industry priority and, it’s no surprise that the big eretailers, such as Alibaba, Amazon, and JD, are driving innovation in this area: implementing protocols that ensure packaging survives the ecommerce channel, without product damage or failure.
Amazon, for example, has collaborated with non-profit organization, the International Safe Transit Association (ISTA), to develop specific criteria that evaluates the ability of primary packaging to resist damage from various environmental forces. Packaged products – such as flexibles pouches or rigid containers – must pass the ISTA-6 simulation, a general simulation test for individual packaged products shipped through a parcel delivery system. Here, the packaged product undergoes dropping, vibration, temperature and humidity tests and, in addition, a test that ascertains if the package is designed to protect against damage, reduce waste, be recyclable, be ‘frustration-free’, and ship in its own container.
So, will these standards become global and be picked up by other eretailers?
Amcor’s investment in ecommerce-ready packaging
Ecommerce is evidently a challenging arena. Currently, at Amcor we work with a partner to test and certify ecommerce-ready packaging for our customers. However, investment in two ISTA testing laboratories – one in the US and one in Europe – means we will soon be able to test, improve and certify primary packaging under one roof. This will ultimately accelerate the process of getting products ecommerce ready quickly and cost-efficiently.
By having this end-to-end product development in-house, we believe this will enable a continuous improvement cycle. With ecommerce-ready packaging, we expect these products will receive increased positive feedback (more 5 stars) and less complaints from consumers about their deliveries. For instance, in our Amcor primary consumer ecommerce research for pet care products, freshness, seal functionality and clean opening were top concerns. Designing with ecommerce in mind should increase sales, improve brand reputation and create happy customers who receive orders quickly, safely, and that are easy-to-open. And that doesn’t have to come at the expense of design. Quite the opposite in fact – the possibilities of innovative packaging are almost endless when designing for ecommerce.
So, is your packaging ecommerce-ready?
To find out more about the ways Amcor can help you win with ecommerce, get in touch with one of our ecommerce experts at mailto:ecommerce@amcor.com
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