Size Matters
Rethinking Packaging for the Backbone of E-Commerce
E-commerce across the UK and Europe thrives on the innovation and agility of small and medium-sized enterprises (SMEs). These businesses are the lifeblood of the industry, yet much of the ecosystem they rely on—particularly in packaging—has not evolved to meet their specific needs.
While the approach of local for local offers many advantages like fewer protective fillers, smaller pack sizes, and a focus on efficiency. The packaging industry continues to operate with traditional constraints—minimum order quantities, rigid sizing, and a one-size-fits-all approach.
To bridge this gap, we spoke directly with SMEs in the UK to understand their daily realities, challenges, and what truly holds them back. The insights were clear:
Growth Comes from Enabling, Not Just Selling
For any company looking to serve and grow with this segment, success lies in understanding that your business grows when theirs does. That means stepping beyond product offerings and rethinking how solutions enable SME efficiency, cost-effectiveness, and agility in their application.
Customization, for instance, is often misunderstood. It’s not just about adding a logo to a box; true customization is about aligning packaging with the way SMEs operate. From our conversations, six key pain points emerged that demand a shift in how packaging solutions are designed:
1. Packaging must match the realities of transit.
SMEs operate in an omnichannel world, where shipments vary widely in distance and handling. The “ideal” packaging must cater to this complexity, ensuring protection without excess waste.
2. Pack sizes are too big for average SME shipments.
The typical order value for many mid-sized businesses hovers around £65-£70 (Euro 65-80), yet standard packaging sizes remain oversized. This mismatch leads to unnecessary filler use and inflated costs.
3. Warehousing space and costs are a major burden.
Storing packaging at scale is a challenge. SMEs would prefer on-demand replenishment over high minimum order quantities that tie up space and cash flow.
4. Rightsizing isn’t just an environmental win—it’s a business necessity.
Smaller, well-fitted packaging means easier packing, faster fulfillment, and lower shipping costs—a direct impact on the bottom line.
5. Time is the scarcest resource.
SME owners wear multiple hats. They need packaging solutions that are fast and easy to use, rather than complex or time-consuming to assemble.
6. Finding the right packaging mix is an ongoing struggle.
Too much time is spent searching for the best combination of price, quality, and availability. This is time that could be better invested in growing the business itself.
What Needs to Change?
The question is no longer whether the industry should adapt—it must. If SMEs are the foundation of e-commerce, then packaging solutions must be built with their needs in mind.
- More flexible ordering models to align with SME cash flow and storage constraints.
- Pack sizes and designs optimized for micro-fulfillment and omnichannel logistics.
- Intuitive, time-saving solutions that simplify the fulfillment process.
- Smarter rightsizing to balance sustainability and cost-effectiveness.
The companies that recognize this and adapt will be the ones that not only serve SMEs better but also position themselves for long-term success in a rapidly evolving e-commerce landscape.
So, the real question is: Are we designing for the way e-commerce is evolving, or are we holding businesses back?