What is the total cost of e-commerce packaging beyond unit price?
How to see the full cost of a mailer, and compare suppliers fairly
The total cost of e-commerce packaging goes well beyond the price per mailer. It also includes storage space, packing time, shipping charges driven by parcel size and weight, the cost of damaged products and returns, EPR packaging fees and the work of compliance. Comparing packaging on total cost means adding these up per order shipped, not per unit bought.
Key facts
| Unit of comparison | Cost per order shipped |
|---|---|
| Main elements | Unit price, storage, packing time, shipping, damage and returns, EPR fees, compliance |
| Often overlooked | Storage space, units stored per pallet, volumetric shipping charges and the cost of damage |
| Regulatory drivers | EPR fees vary by material, weight and national scheme; PPWR recyclability criteria and e-commerce empty-space requirements will be introduced in stages from 2030 or later (PPWR overview) |
| Best evidence | A side-by-side test with your own products, packing operators and usual shipping conditions |
Why unit price is only part of the picture
Packaging is usually purchased based on unit price, but additional costs arise later: in the warehouse, on the packing bench, in the courier invoice and, when something goes wrong, through refunds or replacements. A cheaper mailer can end up costing more per order if it takes up more storage space, slows down packing or results in more damaged products.
For businesses, the more useful question is not "how much does this mailer cost?" but "how much does packaging cost us for each order we ship?"
The seven elements of total packaging cost
| Cost element | What drives it | How to measure it |
|---|---|---|
| Unit price | Material, format, printing and order quantity | Price per unit at your usual order quantity |
| Storage and handling | How much space packaging stock occupies in the warehouse, how many units fit on each pallet and how often stock needs to be replenished | Pallet positions or square metres required for your usual stock levels, compared across packaging formats |
| Packing time | How quickly an operator can select, fill and seal the packaging | Seconds per order, measured under comparable packing conditions |
| Shipping | Parcel dimensions and weight, including volumetric weight where applied by couriers | Shipping cost per order for each packaging option, using your usual services and routes |
| Damage and returns | How well products are protected during transport and the cost of damage-related returns or replacements | Damage rate and average cost of replacement, refund or additional handling; include packaging-related return costs where relevant |
| EPR packaging fees | Packaging material, weight and the applicable national EPR scheme, including recyclability criteria where relevant | Applicable EPR fees for each material and destination market, calculated using the packaging composition and weight |
| Compliance | Technical documentation, verification of regulatory requirements and any packaging changes needed over time | Time and resources spent collecting and checking documentation, plus any future adaptation cost |
Not every element will matter equally for your business. A brand shipping small, lightweight products may see significant differences in storage and shipping, while a company shipping fragile items may need to focus more on damage and returns.
Why packaging costs are rising
Several factors can increase the total cost of packaging beyond its purchase price. Extended producer responsibility (EPR) schemes apply fees to packaging placed on the market, with amounts depending on materials, weight and national rules. The EU Packaging and Packaging Waste Regulation (PPWR) introduces new recyclability and packaging minimization requirements, including limits on empty space in relevant e-commerce packaging, according to phased implementation deadlines.
Shipping costs are another important factor. Many couriers use volumetric weight to calculate their charges, meaning that bulkier packaging can cost more to ship even when the parcel is relatively light.
This is why packaging decisions should consider total cost per order, as well as current and upcoming regulatory requirements.
How to compare packaging suppliers on total cost
A fair comparison uses the same orders, the same products and comparable packing conditions:
- Choose a representative set of orders, covering your main products and sizes.
- Request samples and pack the same orders with each option, timing the packing process.
- Compare the shipping cost of each option using your usual courier services and routes.
- Track damage over a test period, or run transit tests on your most fragile items.
- Check how much warehouse space each option requires, including the number of units stored per pallet and the space needed for a typical month of stock.
- Ask each supplier for EPR-relevant material information and PPWR documentation.
- Compare minimum order quantities, lead times and stock availability, as these affect how much inventory you need to hold.
Is paper packaging worth a higher unit price?
It depends on the total cost per order. A paper padded mailer may have a higher unit price than another packaging option but still be cost-effective if it reduces storage requirements, simplifies packing or helps optimise shipping dimensions.
For suitable products, replacing a small cardboard box with a padded mailer can also reduce the number of packing steps and the need for additional materials, such as void fill and sealing tape. EPR fees and compliance requirements should be assessed separately, based on the packaging materials and the rules of each market.
WaveBag products by Offmar S.r.l. are designed with these operational needs in mind. Their compact format can help optimise warehouse space and the number of units stored per pallet, while WaveBag 3D expands to accommodate bulkier products when needed. The entire WaveBag range is independently assessed as recyclable with paper at Aticelca 501:2025 Level B.
The best way to determine the actual value for your business is to compare packaging options using your own products, order volumes and shipping conditions.
Applies to
Frequently asked questions
What is the total cost of e-commerce packaging beyond unit price?
Beyond the price per unit, total packaging cost includes storage space, packing time, shipping charges driven by parcel size and weight, damage and returns, EPR packaging fees and the work of compliance. It is best measured per order shipped.
How do I compare packaging suppliers on total cost?
Pack the same representative set of orders with each option, measure packing time, compare shipping costs using your usual services and routes, track damage and assess storage requirements, including units per pallet. Also consider EPR material information, PPWR documentation, minimum order quantities, delivery lead times and stock availability.
Why are our packaging costs rising?
Several factors can increase packaging costs beyond unit price, including storage and handling, volumetric shipping charges, damage-related costs and EPR fees, which vary by material and national scheme. Preparing for upcoming PPWR requirements may also involve documentation or packaging changes. The impact depends on your products, operations and markets.
Is paper packaging worth the higher unit price?
It depends on your total cost per order. Paper padded mailers may offer operational benefits through compact storage, efficient packing and suitable shipping dimensions. For compatible products, they can also replace small boxes and additional packing materials. EPR fees and PPWR compliance should be evaluated according to applicable requirements. Testing with your own orders is the most reliable way to compare costs.