News Are Small UK Businesses Spending More on Packaging Than They Need To?

[adamjohn]

Packaging is one of those business expenses that can quietly add up, particularly for small retailers and online sellers working with limited budgets.

At Buy Packaging Boxes, we see how important it is to balance packaging costs with product protection and presentation. Choosing the right box size, avoiding unnecessary materials and ordering sensible quantities can make a difference without compromising quality.

Branded packaging can be useful, but it isn't always the first thing a new business needs. Sometimes, a well-fitting plain box with a simple label is a more practical starting point.

For UK business owners, what's been your biggest packaging challenge: rising costs, minimum order quantities, storage space or finding reliable suppliers?

 

[AI Helper]

Short answer: yes, a lot of them are, but usually not on the box itself.

The real money leak tends to be postage, not packaging. Royal Mail, Evri, DPD and the rest all price on size bands and volumetric weight, so a box that is 2cm too deep can tip a small parcel into a medium parcel and cost an extra pound or more on every single order. Over a few thousand parcels a year that dwarfs whatever was saved by buying the cheapest cartons. Anyone selling online should measure their three or four best-selling products, check the current Royal Mail size limits, and pick box sizes that sit comfortably inside those bands. That one exercise often pays for itself within a month.

Where the other waste hides

• Void fill. Oversized boxes need more paper or air pillows, which costs money twice: once for the fill and again for the postage.
• Minimum order quantities. Custom printed boxes often start at 500 or 1,000 units. For a new business that is cash tied up on a shelf, and if the product range changes, those boxes are scrap. A plain carton with a printed sticker or branded tape gives most of the presentation at a fraction of the commitment.
• Storage. Renting a bigger unit to hold a pallet of boxes is a hidden packaging cost that rarely gets attributed properly.

A couple of UK-specific points worth knowing

Plastic Packaging Tax only bites directly if a business manufactures or imports 10 tonnes or more of plastic packaging a year, so most small firms are outside it, but suppliers are passing the cost down the chain, which is one reason prices have crept up. Similarly, the new Extended Producer Responsibility fees for packaging currently apply to businesses over £1m turnover handling more than 25 tonnes, so smaller sellers are exempt for now, though that threshold is worth keeping an eye on as it may change.

For VAT-registered businesses, packaging is a fully recoverable input, and it is an allowable expense whether trading as a sole trader or through a Ltd company. Keep the invoices and it goes straight against profit.

To answer the question in the post: minimum order quantities are the most common complaint, closely followed by suppliers who are cheap on the headline price and then expensive on delivery.

 

[adamjohn]

That's a very useful point. Delivery costs and box dimensions are often overlooked when businesses try to reduce packaging expenses.

I also agree that high MOQs can be a challenge for smaller businesses. Starting with practical, well-sized packaging and gradually moving towards custom branding can be a sensible approach.

Thanks for sharing these insights.

Short answer: yes, a lot of them are, but usually not on the box itself.

The real money leak tends to be postage, not packaging. Royal Mail, Evri, DPD and the rest all price on size bands and volumetric weight, so a box that is 2cm too deep can tip a small parcel into a medium parcel and cost an extra pound or more on every single order. Over a few thousand parcels a year that dwarfs whatever was saved by buying the cheapest cartons. Anyone selling online should measure their three or four best-selling products, check the current Royal Mail size limits, and pick box sizes that sit comfortably inside those bands. That one exercise often pays for itself within a month.

Where the other waste hides

• Void fill. Oversized boxes need more paper or air pillows, which costs money twice: once for the fill and again for the postage.
• Minimum order quantities. Custom printed boxes often start at 500 or 1,000 units. For a new business that is cash tied up on a shelf, and if the product range changes, those boxes are scrap. A plain carton with a printed sticker or branded tape gives most of the presentation at a fraction of the commitment.
• Storage. Renting a bigger unit to hold a pallet of boxes is a hidden packaging cost that rarely gets attributed properly.

A couple of UK-specific points worth knowing

Plastic Packaging Tax only bites directly if a business manufactures or imports 10 tonnes or more of plastic packaging a year, so most small firms are outside it, but suppliers are passing the cost down the chain, which is one reason prices have crept up. Similarly, the new Extended Producer Responsibility fees for packaging currently apply to businesses over £1m turnover handling more than 25 tonnes, so smaller sellers are exempt for now, though that threshold is worth keeping an eye on as it may change.

For VAT-registered businesses, packaging is a fully recoverable input, and it is an allowable expense whether trading as a sole trader or through a Ltd company. Keep the invoices and it goes straight against profit.

To answer the question in the post: minimum order quantities are the most common complaint, closely followed by suppliers who are cheap on the headline price and then expensive on delivery.

 

[AI Helper]

Glad it was useful. One thing worth adding on the "start plain, brand later" route, since it comes up a lot with newer sellers.

Before committing to a custom print run, it pays to check the numbers properly. Work out how many parcels go out a month, then ask whether that MOQ will be used up inside six months. If not, the cash is better left in the business. A few suppliers will now do short digital runs of 100 to 250 printed mailer boxes at a higher unit price, which is a sensible middle step for testing whether branded packaging actually moves repeat orders or review scores.

Also worth asking suppliers about split delivery. Some will accept a 1,000 unit order but ship in batches, which solves the storage problem without losing the volume price. Not every supplier advertises it, but plenty will agree if asked directly.