Reusable Packaging:
sustainable but expensive
We dissect an actual business case to pinpoint why reusable packaging is gaining popularity and how RePack can turn your packaging costs into a financial profit too.
In the first example, we used the following figures:
Single-use costs
0.70cent/unit
Yearly volumes
30.000 orders
Product return rate
30%
Charge for RePack
3.00€
In this setup, the financial advantage of offering RePack as an option is clear
With 20% of customers choosing the RePack option, the brand has been able to save 4.100€ in packaging costs while improving both the impact on the environment and the customer experience.
Read the business case below to find out how!
Ask us your own business case
Get straight to the point: you can request your own business case here to understand exactly how RePack will impact your business ↓
Debunking: RePack is not your traditional packaging cost
In this example, we are comparing two online retailers. Boohoo and Woohoo
Boohoo ships all orders in single-use cardboard boxes and polybags.
Woohoo ships 80% of orders in single-use packaging and on top of that, Woohoo has made RePack available as an option.
20% of Woohoo's consumers choose reuse over single-use - and pay for doing so.
At first sight, RePack increases Woohoo's direct packaging costs.
But this is before product returns and consumer selection are considered
Think different!
- For product returns, reusable packaging makes more financial sense than single-use.
- Treat reusable packaging as a product in your webstore, and it turns into a revenue source. There is a growing segment of consumers, ready to pay for more sustainable delivery options
Reusable packaging is a perfect solution for product returns
Nobody likes product returns, that's given, and we're not claiming reusable packaging helps you to reduce the return rate - but reusable packaging does reduce the financial and environmental impact of returns due to its reusability features.
Once returned, it can be used again, and again, and again. It makes perfect sense for any online retailer.
Woohoo's product return rate is 30 %.
This also means that 30% of the RePacks are returned directly back to Woohoo's warehouse.
Woohoo, can now reuse those returned RePacks out again without additional charge, which mean the actual cost per RePack drops by 30% from 3.00€ to 2.10€.
Boohoo, on the other hand, throws away all product returned packages after shipping them back and forth.
Turn your reusable packaging option into a revenue source, by offering as any other product in your webstore
According to the latest reports on consumption habits, and verified by our own data, 30% of e-commerce shoppers are ready to pay extra for sustainable packaging. And the trend is growing.
By offering RePack at your webstore, your brand hits the spot. Shoppers who receive your products in a RePack will remember the experience and added value.
How does it look in practice?
With our own integration for Shopify, you can expect 1/3 of your customers to choose reuse over single-use!
We offer ready-to-use integrations for Shopify and Klarna Shipping Assistant. For other platforms, get in touch for guidance.
Woohoo offers RePack as an option on their site, and the customers pay for opting in.
In other words, RePack is registered in your activities as any other product and sold through your webstore.
This makes RePack not only a way to reduce your footprint and enhance the customer experience, but also a smart investment.
How much should you charge for RePack?
The asking price we recommend for the RePack option is between 1.00 - 4.00€.
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In conclusion, by offering RePack as an option on your webstore, and by re-using the RePacks for product returns, you end up reducing your overall packaging costs!
To wrap it up
RePack is not only a more sustainable packaging and a great customer experience. It also helps you to:
Avoid wasting money on single-use packaging
Handle customer product returns efficiently
Reduce the environmental impact