Sustainable Packaging Best Practices for Ecommerce

At a time when global ecommerce sales are booming, consumers are increasingly concerned about the environmental impacts of online shopping. In a 2022 study, more than half of North American consumers indicated they would think twice about buying a product online due to sustainability concerns. 

Amid rising consumer pressures, ecommerce entrepreneurs embracing sustainable packaging solutionsnot only overcome a purchasing hurdle but also build trust among eco-conscious shoppers. A survey by logistics company Swiftedfound 57% of consumers surveyed were willing to pay 10% more for eco-friendly packaging and shipping. 

In this article, we’ll get into what sustainable packaging is and how to implement a sustainable packing strategy. 

What is sustainable packaging?

Sustainable packaging is any packaging solution that reduces negative impacts on environmental and social systems. Packaging includes branded product packaging (like a candy wrapper) and shipping materials (like a cardboard box). 

Sustainability experts evaluate packaging sustainability using a life-cycle assessment, which measures the social and environmental impacts of packaging choices across the entire supply chain. This assessment includes the effects of raw material sourcing, manufacturing, shipping, and recycling or disposal. 

Sustainable practices frequently include the following: 

• Using sustainable packaging materials: Sustainable materials include recycled, recyclable, reusable, or biodegradable options. Recycled paper, cardboard, and organic matter like cornstarch, mushroom, or seaweed are popular eco-friendly packaging materials.
• Using sustainable manufacturing and shipping processes: Sustainable packaging practices include increasing energy efficiency in manufacturing, embracing packaging designs that optimize material use, decreasing shipping-related carbon dioxide emissions, and engaging in ethical business practices that support human health.
• Embracing sustainable end-of-life options: More sustainable packaging strategies minimize packaging waste using circular economy principles, including reusing materials, composting, and recycling materials into new packaging systems or products.

Benefits of using sustainable packaging for your business

At the highest level, sustainable packaging solutions can reduce business costs and increase brand loyalty to give your business a long-term advantage. Let’s take a look at a few other specific benefits.

Reputational boost

According to a 2023 report by PDI Technologies, most consumers across all demographic groups care about the environmental impacts of the products they purchase. A McKinsey & Company article also stated that brands that make sustainability-related claims enjoy greater brand loyalty than those that don’t. 

Adopting a business sustainability strategy can help improve your brand image and increase brand loyalty. Because customers interact with packaging materials directly, environmentally sound packaging is a highly visible sustainability action and a particularly effective way to demonstrate environmental commitments.

Decreased costs

Many business owners assume switching to an eco-friendly packaging solution will increase costs, but this isn’t always the case. Although sustainable materials can be more expensive in a one-to-one comparison, eco-friendly packaging often makes more efficient use of materials, which can actually decrease costs overall. 

For example, sustainable packaging design can result in smaller and lighter packaging systems, reducing shipping expenses and the amount of warehouse space needed to store packaging materials.

Long-term competitive advantage

As consumer demand for sustainable products increases and energy costs rise, businesses that take proactive steps to improve packaging sustainability can reduce their risk of future regulatory compliance issues regarding packaging waste and outpace businesses that rely on nonrenewable natural resources.

Sustainable packaging ideas to try

Sustainable packing strategies include materials choices, transportation methods, and customer outreach. Here are a few ideas that we’ll cover in more detail: 

• Embrace recycling and composting
• Reduce packaging
• Use reusable packaging
• Educate your customers
• Choose sustainable manufacturing partners

Embrace recycling and composting

Recycled, recyclable, and compostable materials are all populareco-friendly alternatives to typical packaging. For example, using recycled cardboard, recycled plastic bottles, or recycled paper packaging can help divert waste from landfills and minimize the production of new plastic packaging.

You can also invest in packaging made from compostable or recyclable materials to reduce the likelihood that your product packaging ends up in a landfill. Options include recyclable plastic, mushrooms, seaweed, cornstarch, or hemp. Many compostable packaging materials are also made from renewable resources, meaning they can be sourced and disposed of sustainably.

Reduce packaging

Designing packaging systems that use fewer materials can help you cut costs and minimize waste. For example, instead of enclosing a branded display box inside of a generic shipping box, you might design a single, shipping-friendly custom box that showcases your brand without requiring you to double up on packaging. 

Packaging solutions that decrease total package size and weight can also minimize material needs and help reduce shipping emissions. 

Use reusable packaging

Look into reusable packaging options such as pallets, bins, and plastic containers. Reusable packaging solutions are more popular with B2B businesses and typically involve a package pickup or return system. 

For example, a grocery business might receive delivery of oranges in plastic crates, empty the crates, and return them to the supplier during their next orange delivery. 

Educate your customers

You can also use packaging design to educate your customers about how to interact with your products. For example, you might design custom packaging labeled “Recyclable,” “Compostable,” or “Reuse me for storage.” You can also include inserts to help consumers navigate location-specific recycling requirements and procedures. 

Choose sustainable manufacturing partners

Look for certifications that validate sustainability achievements, like a B Corporation certification from B Labs or a Compostable logo from Biodegradable Products Institute.

How to transition to sustainable packaging

Transitioning to sustainable packing involves understanding your business needs, researching packaging options, and educating customers. Here are four steps to get you started: 

1. Set parameters

Before transitioning to a new packaging system, evaluate your packaging needs by considering the following elements:

• Cost: How much does your company currently pay for packaging and shipping? What percentage of direct costs are related to shipping or packaging? How would a change in these costs affect your profit margins?

• Branding and customer perception: How does your current packaging reflect your brand image? How do your customers feel about it?

• Functionality: How well does your current packaging system hold up in the shipping process? Do you have any special needs, like insulated packaging or protection for fragile materials?

• Sustainability: What are the social and environmental impacts of your current packaging systems? How is your packaging contributing to your business’s overall carbon footprint?

For each category, note how your current system performs. Then, determine minimum performance criteria and note any nice-to-haves. You might require packaging that is easy for consumers to open and have a preference for packaging customized with your brand colors and fonts. These requirements will help you evaluate potential partners. 

2. Order samples and test options

Next, identify potential vendor partners that meet your parameters, order product samples, and test options. When running tests, consider package weight, durability, and ability to accommodate specific product needs. If you ship fragile products, you might conduct shake-and-drop tests for different packaging systems. 

3. Price accordingly

Moving to a more sustainable packaging system doesn’t need to eat into your profits. Although some sustainable packaging materials are more expensive than less sustainable alternatives, sustainable designs frequently use fewer materials, which can decrease total material costs. Sustainable packaging systems are often smaller and lighter, reducing warehousing and shipping expenses. 

Research also shows that most consumers are willing to pay more for sustainable packaging, so if you opt for a more expensive solution, consider increasing prices to offset the difference. 

4. Market your efforts

Improving sustainability performance can help you increase brand loyalty and boost sales, particularly with younger and more eco-conscious consumers. But you can’t benefit from your sustainability achievements if your customers don’t know about them. Marketing your efforts can help you improve your brand image and provide customers context for noticeable changes in packaging design. 

For example, Dieux Skin cofounder Charlotte Palermino took to social media to explain the company’s more streamlined packaging for their moisturizer. In a short video, Palermino details the benefits of using a smaller aluminum bottle for the planet (it’s recyclable) and for the consumer (more product in a smaller package).

Move toward sustainability with Shopify

At Shopify, we’re committed to ensuring that our planet thrives long into the future. Because ecommerce can only thrive if Earth does too. 

That’s why, in 2019, we launched the Sustainability Fund—and promised to invest at least $5 million every year on the most promising technologies and projects to combat global climate change. It’s a threefold commitment:

1. We spend at least $1 million to permanently remove carbon every year. 
2. We use promising solutions to future-proof Shopify and maintain carbon neutrality. 
3. We empower our customers to take climate action.

With Shopify, you can rest assured that the planet we all call home is at the top of our priority list. And we’ll help make sure it’s at the top of yours too. 

Read our 2023 Climate Report to learn more about our Sustainability Fund—as well as how it can help your business. 

Read the report