Packaging cost per shipment is the sum of every item that goes into one order (box or mailer, void fill, tape, shipping label, insert) plus the labor to pack it. Divide each bulk price by the units in the pack, add them up, then add packing time at your hourly cost. Small changes, like a cheaper label or a mailer instead of a box, compound over thousands of orders.
Most sellers know their shipping postage per order. Fewer know their packaging cost, which hides inside bulk purchases. Here is how to work it out.
List every component
| Component | Bulk price | Units | Cost per order |
|---|---|---|---|
| Mailer box 9 × 6 × 3 | $65 | 100 | $0.65 |
| Kraft paper void fill | $40 | 400 sheets, 2 per order | $0.20 |
| Packing tape | $30 | 6 rolls, about 150 orders per roll | $0.03 |
| 4x6 thermal label | $20 | 1,000 | $0.02 |
| Printed insert card | $45 | 500 | $0.09 |
| Materials | $0.99 | ||
| Packing time | $18 per hour | 3 minutes | $0.90 |
| Total | $1.89 |
The prices are examples to show the method. Plug in your own.
Where the savings are
- Right-size the box. A smaller box can cut postage through dimensional weight far more than it saves on cardboard.
- Mailers for soft goods. See poly mailer vs box.
- Generic labels. If your label printer accepts them.
- Packing station layout. Pre-folded boxes, a tape dispenser and supplies within reach cut the minutes that dominate the total.
- Price breaks. Order at the quantity where per-unit price drops, if storage and cash allow.
Custom packaging math
Custom printed boxes usually have minimum order quantities and setup or plate costs. Divide setup costs over the run, add per-unit price and freight, then compare to stock boxes plus a sticker or insert.
Browse packaging.
Common questions
What should packaging cost per order?
It depends on the product, but many small sellers spend from under a dollar for mailers to several dollars for branded boxes. Calculate yours rather than guessing.
Should I include labor in packaging cost?
Yes. Packing time at even a modest hourly rate is often larger than the cost of tape and filler.
Are custom boxes worth it?
They can be when right-sizing cuts shipping costs or the unboxing matters to your brand. Compare the minimum order and the per-unit price at your real volume.
How do price breaks affect cost?
Per-unit prices often drop at higher quantities. Only buy up if you have the storage and cash flow, and the product will not change.