By Monique, Founder of PackQueen · Packaging Strategy · 8 min read
3 Things You'll Take Away From This Article
➡ EOFY is the ideal time to audit your packaging strategy. Most businesses review their finances at end of financial year — but packaging is a marketing and operational cost that deserves the same scrutiny.
➡ Packaging that isn't performing is costing you money. Poor ecommerce packaging leads to higher damage rates, lower repeat purchases and missed brand opportunities — all of which affect your bottom line.
➡ Small upgrades made now pay dividends all year. The changes you make before the new financial year set the baseline for your customer experience, brand perception and fulfilment efficiency for the next 12 months.
Why Your Packaging Deserves an Annual Review
Hi, I'm Monique — founder of PackQueen. Every year around this time, I encourage the Australian businesses I work with to do something most of them have never done before: treat their packaging the same way they treat their finances at EOFY.
Think about it. You review your P&L. You review your supplier costs. You review your team structure. But when did you last seriously evaluate whether your ecommerce packaging is doing the job you need it to do?
Packaging is both a cost and a marketing tool. When it's working well:
- Customers receive their orders undamaged, every time
- The unboxing experience reinforces your brand and builds loyalty
- Your packaging cost is optimised — you're not overspending on void fill or oversized boxes
- Your fulfilment team can pack efficiently without errors
💡 EOFY is a natural inflection point. It's the moment to stop, look back at what your packaging has cost you, and look forward to what it could do better.
The EOFY Packaging Audit: 8 Questions to Ask Right Now
Work through these questions honestly. They'll tell you where your packaging is performing — and where it's letting you down.
| Audit Question | ✅ Green (Working) | 🔴 Red (Review Needed) |
|---|---|---|
| Damage rate | Under 1% of orders damaged | Consistent damage complaints or returns |
| Unboxing experience | Customers share photos or leave experience reviews | No social content, no experience mentions |
| Brand consistency | Packaging matches brand identity | Plain or mismatched packaging |
| Freight cost | Right-sized boxes, minimal dimensional weight | Oversized boxes, high void fill usage |
| Fulfilment speed | Team packs efficiently without error | Slow pack times, regular mistakes |
| Customer retention | Strong repeat purchase rate | Low repeat purchases despite good product |
| Sustainability | Recyclable, minimal waste | Plastic, excessive void fill, overpackaging |
| Cost per order | Packaging cost is tracked and optimised | Unknown cost per order, no benchmarking |
If you answered 'Red' on two or more of these, your packaging strategy needs attention before the new financial year begins.
The 5 Most Common Packaging Problems We See at EOFY
1. Oversized Boxes and Wasted Void Fill
This is the most common and most costly issue. Businesses use boxes that are too large for their products, fill the space with paper or bubble wrap, and pay inflated dimensional weight charges as a result.
The fix: right-size your boxes. Order custom or semi-custom boxes sized to your actual product dimensions. The reduction in void fill alone often pays for the upgrade.
2. Packaging That Doesn't Match the Brand
Your ecommerce packaging is the first physical interaction a customer has with your brand. If your website looks premium but your box looks like it came from a warehouse, the disconnect undermines your brand equity.
The fix: at minimum, add custom tissue paper and a branded insert. At best, upgrade to a custom printed mailer box.
3. No Interior Packaging Strategy
Many businesses focus on the exterior box but neglect the interior — and that's where the emotional peak of the unboxing happens.
The fix: add one interior element. Tissue paper, a thank-you card, or a branded sticker changes the experience immediately.
4. Packaging Cost That's Never Been Benchmarked
A surprising number of businesses have never calculated their packaging cost per order. This makes it impossible to know whether you're overspending or whether an upgrade would pay for itself.
The fix: calculate your current packaging cost per order, then benchmark against what better packaging would cost. The comparison often surprises people.
5. Lead Time Mismanagement
Running out of packaging during a peak period is an operational crisis. We see it every year around Black Friday and Christmas.
The fix: use EOFY to forecast your packaging needs for the year ahead. Order ahead of peak periods, maintain a buffer stock, and build lead time awareness into your planning calendar.
Your EOFY Packaging Upgrade Priority List
| Priority | Upgrade | Impact | Cost Level | When |
|---|---|---|---|---|
| 1 | Right-size your boxes | Freight cost reduction | Low–Med | Immediately |
| 2 | Add branded tissue paper | Unboxing experience lift | Low | This quarter |
| 3 | Add a printed insert / thank-you card | Customer retention uplift | Low | This quarter |
| 4 | Custom printed mailer box | Full brand experience | Med–High | New FY order |
| 5 | Sustainable packaging swap | Brand values + compliance | Med | New FY plan |
| 6 | Packaging cost audit | Operational efficiency | Free | EOFY now |
Customer Story: How an EOFY Review Changed a Business
A Melbourne homewares brand came to us in June — prompted by their EOFY bookkeeper review which flagged that their freight costs had increased 28% year-on-year despite flat order volume.
The culprit? They'd been using the same box sizes for three years, even as their product range had evolved. Several products were now shipped in boxes nearly twice the size they needed, packed with excessive paper void fill.
What We Did
- Audited their full product range against their current box sizes
- Identified three box sizes that could be replaced with two smaller, right-sized options
- Added custom tissue paper to replace the paper void fill for smaller products
- Introduced a printed thank-you card — their first piece of interior brand communication
Results in the first quarter of the new financial year
📦 The packaging audit cost them nothing. The changes they made cost less than $0.80 per order more than their previous packaging. The freight saving alone more than offset the upgrade cost.
Browse our full ecommerce packaging range or get in touch to book a packaging review with the PackQueen team.
Frequently Asked Questions
1. How do I calculate my current packaging cost per order?
Add up the cost of every packaging element you use per order, then divide your total monthly packaging spend by your monthly order volume.
| Packaging Element | Typical Cost Range | Notes |
|---|---|---|
| Plain shipping box | $0.80–$2.50 | Varies by size and wall thickness |
| Custom mailer box | $2.50–$6.00 | Depends on size, print and quantity |
| Tissue paper (per sheet) | $0.10–$0.25 | Higher for custom printed |
| Printed insert/card | $0.15–$0.40 | Depends on size and quantity |
| Void fill (paper/bubble) | $0.20–$0.60 | Eliminated with right-sized boxes |
| Tape and labels | $0.10–$0.25 | Often overlooked in calculations |
2. Is EOFY a good time to order new packaging?
Yes — for two reasons. First, you can claim packaging as a business expense in the current financial year if ordered before 30 June. Second, placing orders now means your new packaging is ready before the quiet July-August period, giving you time to test it before peak season.
- Custom packaging typically has a 2–4 week lead time from artwork approval
- Order before 30 June for current year tax deductibility (consult your accountant)
- Use the quieter new FY period to bed in new packaging and train your team
- Be ready with upgraded packaging before spring gifting season in September
3. What's the fastest packaging upgrade I can make right now?
- Branded sticker seal. Order custom stickers — 5–7 day turnaround. Apply to any plain box for instant brand presence
- Printed insert card. A simple thank-you card can be printed and delivered within a week
- Coloured tissue paper. Plain coloured tissue paper is available off the shelf — add it immediately while custom tissue is on order
- Right-sizing audit. Order one size down from your current box today and test whether your most common products fit
4. How much should I be spending on packaging per order?
| Average Order Value | Packaging Budget (% of AOV) | Target Packaging Cost |
|---|---|---|
| Under $30 | 3–5% | $0.90–$1.50 per order |
| $30–$75 | 2–4% | $0.60–$3.00 per order |
| $75–$150 | 1.5–3% | $1.13–$4.50 per order |
| $150+ | 1–2% | $1.50–$3.00 per order |
Ready to start your EOFY packaging review? Browse our ecommerce packaging range or get in touch with the PackQueen team for a free consultation.
Monique | Founder, PackQueen
packqueen.com.au · Ecommerce Packaging Solutions for Australian Businesses
