>, Retail Experience, Trends>Online shopping: Branded packaging increases sales

Online shopping: Branded packaging increases sales

2020-03-24T14:05:23+01:00 23rd March 2020|E-commerce, Retail Experience, Trends|

Online shopping reached an astronomical 27 trillion USD in 2020. This is according to data research company eMarketer’s recent study of the global market.

This is a staggeringly high number that clearly highlights how popular it has become to shop online. This thriving online shopping market has a bearing on how companies should think about and organize their customers’ buying experience. The customer does not have the opportunity to touch and test the product as they do in a physical shop. Instead, the customer’s first physical encounter with the product is through the packaging in which the item is delivered.

In other words, packaging plays an important role in the customer’s overall product and brand experience. This is precisely why it is vital that you, as a company, try to develop packaging that stands out positively. At least if you want to win customers’ attention as well as their wallet (or rather, their credit card).

Continue reading to discover three ways in which branded packaging can create promotional value for your business.

# 1 Aesthetically pleasing packaging can boost the value of the product

Consider the following scenario: A customer is shopping online and has the choice between two almost identical products at the same price. One product is presented in uninspiring standard packaging, while the other product is presented in colourful printed packaging with a logo. Which of the two do you think the customer chooses to add to their basket?

Yes, most likely the product with the attractive packaging. Welcoming packaging is eye-catching, attracts attention, and can ultimately motivate the customer to buy the product. A tendency which, supported by a study by Shorr Packaging Corp., suggests the following:

  • 42% of customers notice if you do something special with your packaging.
  • 51% of customers feel that the product they receive is of greater value if the packaging is decorated with a special print or has been specially adapted to the product.
  • As many as 61% of online shopping customers who spend over 200 USD a month share this view
  • 7 out of 10 online shopping customers prefer custom designs rather than regular boxes, as it makes the unpacking experience more enjoyable.

In short, tailor-made and aesthetically pleasing packaging can boost the value of the product and affect the customer’s brand perception.

# 2 Inspirational wrapping creates positive word of mouth

Good experiences give rise to good publicity. That’s all that needs to be said.

If your customers are happy with your products and services, they will also be more likely to tell others about the great online shopping experiences your business has given them. Let’s turn this into some concrete numbers:

  • 43% of customers who spend over 200 USD per month online showed the packaging to their friends and acquaintances if it was well thought out and attractive.
  • More than 33% of customers who spend less than 100 USD per month online shared their experiences with acquaintances.

Further, the desire to share good experiences certainly doesn’t diminish when it comes to online shoppers’ use of social media. As many as 37% of those who spend the most online per month share photos of product packaging.

Inviting and exciting packaging creates customer satisfaction and therefore “positive word of mouth” and personal recommendations. This is an attractive cocktail that can be hugely commercially valuable for your business. The best advertising is often that which you don’t pay for. When people share their joy in having received and opened your packages, it increases your company’s brand value and potentially attracts new, interested customers.

# 3 The right packaging paves the way for customer loyalty and additional sales

The ultimate goal of any online shopping business is to have customers who are so satisfied that they become loyal brand ambassadors. This means that customers, on their own initiative, advocate and advertise for the company and, not least, return with their credit card again and again. And in this regard, packaging is not insignificant. On the contrary.

According to a study by Dotcom Distribution, packaging is crucial for the degree of customer loyalty in relation to your business:

  • 40% of customers are more likely to make repeat purchases if the first product was delivered in nicer packaging than they normally receive.
  • 43% of customers say that packaging is very important for their overall shopping experience when it comes to luxury goods.

The more expensive the product, the greater the importance of packaging.

However, whether you’re selling high-end products or discount items, packaging will have an impact on both the customer’s decision to buy the product, subsequent likelihood of customer loyalty, and further purchases.

Your packaging should tell your story

Based on the three points outlined above, the conclusion is clear:

Your packaging is a significant extension of your brand and can act as a kind of “sales engine” for the company.

With the right packaging, you can convey your company’s values and history as well as create brand awareness and loyalty amongst your customers.

What story will your packaging tell?