For small and medium-sized businesses, packaging often sits in the “sort it later” pile. It’s easy to see it as a functional necessity — something that protects the product and gets it out the door.
But small business packaging choices directly affect costs, customer experience and long-term profitability. Get it right, and you save money while building brand loyalty. Get it wrong, and you’re quietly leaking cash with every shipment.
Let’s break down the most common packaging mistakes SMEs make — and the smarter ways to avoid them.
1. Ignoring packaging best practices
One of the biggest packaging mistakes businesses make is skipping the basics. Poor-quality materials, overcomplicated designs or packaging that simply doesn’t fit the product can lead to damage, returns and unhappy customers.
Smart packaging should do three things well: protect, travel efficiently and look intentional.
What to focus on instead:
- Use durable materials that can handle transport without overpacking
- Design packaging that fits the product snugly (no rattling, no wasted space)
- Explore eco-friendly materials that reduce waste and appeal to sustainability-minded customers
Well-designed packaging isn’t about being fancy — it’s about being fit for purpose.
Related Reading: How to leverage smart packaging for enhanced brand image
2. Treating packaging as an afterthought, not a brand tool
Your packaging is often the first physical interaction a customer has with your brand. If it looks rushed or generic, that impression sticks.
Inconsistent colours, unclear messaging or a missing logo might seem minor — but they chip away at brand recognition and trust over time.
How to strengthen your brand through packaging:
- Keep branding consistent across every package
- Use clear, simple messaging that reflects your brand personality
- Invest in clean, thoughtful design that stands out without overcomplicating things
Strong branding doesn’t need to be loud. It just needs to be intentional.
3. Underestimating packaging costs
Packaging expenses can creep up quietly. When businesses focus only on unit price, they often miss the bigger picture — especially how packaging affects shipping costs.
Oversized boxes, unnecessary fillers and inefficient materials can increase weight and volume, pushing shipping costs higher than expected.
Packaging cost reduction tips that actually work:
- Buy packaging materials in bulk where possible
- Review suppliers regularly and renegotiate pricing
- Simplify designs to reduce material use and production costs
Reducing packaging costs doesn’t mean cutting corners — it means designing smarter.
Related Reading: The ultimate guide to streamlining e-commerce deliveries
4. Forgetting about the unboxing experience
Customers might not talk about packaging when it’s done well — but they definitely notice when it’s frustrating.
Hard-to-open boxes, messy fillers or damaged items can undo all the effort you’ve put into your product.
Small changes that improve the unboxing experience:
- Make packaging easy to open (no scissors required)
- Keep things tidy and visually pleasing
- Add a small personal touch, like a thank-you note
A good unboxing experience encourages repeat purchases and positive reviews — both priceless for SMEs.
Related Reading: Smart ways to reduce shipping costs in e-commerce
5. Skipping testing before going live
Another common packaging mistake? Assuming it’ll be fine without testing.
What looks good on a desk doesn’t always survive sorting facilities, delivery vans and long journeys. Damaged products lead to refunds, replacements and lost trust.
What to test before scaling up:
- Drop and durability testing for transit conditions
- Trial shipments to real customers
- Feedback on ease of opening and presentation
Testing early prevents expensive fixes later.
Related Reading: Why eco-friendly packaging is not just for big brands
6. Overlooking industry regulations
Packaging rules vary by industry — and ignoring them can be costly. Missing labels, incorrect materials or unclear instructions can lead to fines or rejected shipments.
Stay compliant by:
- Understanding packaging and labelling regulations for your sector
- Including all required information clearly
- Reviewing compliance regularly as regulations change
Compliance isn’t exciting, but it protects both your business and your customers.
Related Reading: How same-day delivery gives your business a competitive edge
7. Letting packaging go stale
Markets evolve. Customer expectations change. Packaging that worked two years ago might now feel outdated or inefficient.
Failing to refresh your packaging strategy can make your brand feel stuck — even if your products aren’t.
How to stay relevant:
- Keep an eye on packaging trends in your industry
- Refresh designs as your brand grows
- Experiment with improvements that reduce waste or improve efficiency
Evolution doesn’t mean constant redesigns — just smart updates when they matter.
Key takeaway
Packaging isn’t just a box — it’s a business decision.
Avoiding common packaging mistakes can help small businesses reduce costs, protect products, improve customer experience and strengthen brand perception. From smarter material choices to better testing and thoughtful design, small changes in packaging can lead to big gains in profitability.
If you’re reviewing your packaging strategy, focus on efficiency, consistency, and customer experience — and let your packaging work harder for your business, not against it. Here’s how we can help.
