Smart Packaging Solution & Technology Benefits | Smart Packaging System

How Smart Packaging Can Help You Increase Real-Time Rates Accuracy

Nikolay Pasholok

Product Owner, Calcurates

How many times did you receive your order in a package that is much bigger than the product itself? E-commerce businesses continue to ship packages wrapped in packaging materials that take 80% of the whole package. Carriers, on the other hand, deliver packages that are too big and thus take too much space in their vehicles. Not only is this unprofitable, but it is also dangerous to the environment and increases garbage pollution. Plus, why would you want to pay for shipping an air?

What is Smart Packaging?

Smart Packaging is an algorithm that “pre-packs” an order into given packages in an optimal way in real-time. These automated packaging algorithms improve efficiency and accuracy before carrier shipping rates are requested using the package dimensions. Smart Packaging system increases the accuracy of shipping rates and therefore makes shipping cost-effective.

Obtain Accurate Shipping Rates with Smart Packaging

Imagine you want to ship two different products of different sizes but the same weight. The larger product will have higher shipping costs because, both weight and volume matter. Thus, carriers came up with volumetric weight calculation in ecommerce (DIM weight) that are based on product height, length, and width. The dimensional weight formula is:

DIM Weight = (L x W x H) / SF

If you use the DIM weight with large but light-weighted products, it will cost more than shipping based on the weight only. However, if you ship a small but heavy product, use DIM weight as it will be cheaper. Why? Because the DIM weight is less than the actual weight of the product. The advanced algorithm from DiM Weight is the type of Smart Packaging which uses dimensional weight optimization to match products and package dimensions more precisely.

How Shipping Rates Accuracy Grows with Smart Packaging

low accuracy

Actual Weight

medium accuracy

Dimensional Weight

high accuracy

Smart Packaging

Smart Packaging is often called dimensional packaging or dimensional shipping. It is more precise than the dimensional weight calculation approach, as besides product dimensions it considers the package's dimensions as well.

How to Obtain Package Dimensions?

Measuring package dimensions might not be as straightforward for some

Rigid Box
To obtain package dimensions of the rigid box, measure the width and length of the base. To measure height put a lid on and measure it from base to the top, including the lid.
Mailer Box
Open the box and measure the width, length, and height of the base only.
Folding Carton
Compose the box and measure it in its compact state to obtain package dimensions.

What are the Benefits of Using Smart Packaging?

Real-Time Shipping Rates from Carriers
Shipping rates based on the weight only are inaccurate. Provide your carrier with the precise product dimensions and the package dimensions to obtain shipping rates with higher accuracy.
Positive Environmental Impact
Smart Packaging technology supports eco-friendly shipping practices and reduces the harmful impact it has on the environment by minimizing the number of packaging materials.
Increase Your Customer Loyalty
Displaying accurate shipping rates at checkout increases customer satisfaction, leading to a loyal customer base.

How to Use the Smart Packaging with Calcurates?

Smart Packaging for Magento and WooCommerce e-commerce stores

The process of Smart Packaging is really simple and easy to comprehend. See the steps below to see how Smart Packaging solution works:

1. Set Product Dimensions
Set the product dimensions (its length, height, and width) in your Magento e-commerce or WooCommerce store.

2. Add Custom-made Packages
Add the package dimensions; tare weight, and weight capacity to all the packages to enable custom box size selection for orders in Calcurates.

3. Activate Smart Packaging
The Smart product Packaging algorithm will choose the best packaging configuration for carrier pricing for each order in real-time.

4. Get Real-Time Rates
Get the most accurate real-time carrier rate accuracy for all your smartly packed shipments. All the information is sent to the carriers automatically, ensuring precision in shipping cost calculation.

FAQ

What are the different types of smart packaging used in eCommerce shipping?

Smart packaging includes solutions like rigid boxes, mailer boxes, and folding cartons, combined with algorithms that optimize packing based on product dimensions to reduce packaging waste in ecommerce. These types help reduce wasted space, achieve shipping cost reduction through packaging, and improve real-time rate accuracy.