Packaging Cost per Order: The Box, Mailer, and Dunnage Math

Short answer: Packaging usually costs between about $0.20 and $1.25 per order for the container and fill combined, depending on whether you ship in a poly mailer or a box. The bigger cost is often hidden in postage: a box that is a size too large can add 3 billed pounds through dimensional weight, which can easily outweigh what you spent on the box itself.

What goes into packaging cost per order?

• Container: the box, mailer or envelope.
• Dunnage: void fill such as kraft paper, air pillows or foam. See what dunnage is and when you need it.
• Sealing: tape, or the adhesive strip on a mailer.
• Inserts: packing slips, thank-you cards and promotional flyers.
• Labor: often bundled into a 3PL's pick and pack fee, sometimes billed separately for custom builds.

What do common containers cost?

Listed prices at Uline at the time of writing; your price will vary by supplier, volume and print:

For comparison, a fee benchmark of $0.25 to $1.00 per box, mailer or insert appears in our 3PL pricing guide, which is consistent with these supplier prices.

How do you calculate packaging cost per order?

Use this formula and fill it with your own prices: container + dunnage + tape + inserts + any packaging labor = packaging cost per order. Then weight it by your order mix. If 60% of orders ship in a mailer and 40% in a box, your average is 0.6 × mailer cost + 0.4 × box cost.

Here is an example with stated assumptions. Container prices are the Uline listings above. Dunnage, tape and a packing slip are an assumed $0.15 combined for boxes and $0.03 for mailers.

How does packaging change your billed weight?

UPS and FedEx bill the greater of a package's actual weight and its dimensional weight: length × width × height in inches, divided by a divisor and rounded up. The Atomix DIM Weight Calculator applies a 166 divisor to UPS and FedEx shipments. Take a 1.5 lb product:

Moving from the 12 × 10 × 8 box to the 10 × 8 × 6 box saves $0.28 in packaging and 3 billed pounds on every UPS or FedEx label. Whether that matters depends on your rate card: if each extra billed pound costs more than about $0.09 at your typical zone ($0.28 ÷ 3), the smaller box wins on total cost. The Atomix calculator notes that USPS applies its 166 factor only to packages larger than 1 cubic foot, so all three of these packages would bill on actual weight with USPS. Our DIM weight chart for 15 common box sizes shows where other standard cartons land.

Two more ways packaging shows up in postage: a filled mailer is measured at its widest points, and a label that declares the wrong box can trigger a carrier dimension adjustment weeks later.

How can you lower packaging cost without more damage?

1. Map each SKU and common order combination to a container, so packers don't reach for the next size up.
2. Use mailers for soft goods and keep boxes for products that can crush or break.
3. Cut the number of box sizes to the few that cover most orders, then buy those in volume.
4. Track damage rates by container. A cheaper box that raises reships is not cheaper.
5. Keep branded packaging for where it earns its cost, such as first orders or gift orders. See custom packaging ideas and our ecommerce packaging guide.

How do 3PLs charge for packaging?

There is no standard. Some include standard boxes and mailers in the pick fee, some bill each container as a line item, and custom or branded packaging is often supplied by the brand. When you compare quotes, ask:

• Is standard packaging included in the pick fee, or billed per container?
• Who chooses the box for each order, and is it based on measured dimensions?
• Can I supply my own branded boxes and mailers, and is there a storage charge for them?
• How are inserts and packing slips billed?

At Atomix, custom packaging is designed with packaging partners to work within fulfillment and carrier requirements. Inserts are treated like SKUs, stored in your Pod and verified with two-step scans, and pricing is set per insert, per note or per tape run, as its order customizations page describes.

Frequently asked questions

What is the average packaging cost per order?

It depends mostly on the container. At Uline's listed prices when this was written, a 10 × 8 × 6 in box was $0.74, a 12 × 10 × 8 in box $1.02 and a 10 × 13 in poly mailer about $0.19 at one case. Add void fill, tape and any inserts to get your full cost.

Is a poly mailer cheaper than a box?

The mailer itself usually is, and it often bills at a lower dimensional weight too. It suits soft, non-fragile products; anything that can crush or break generally needs a box and some dunnage.

Does box size affect shipping cost?

Yes. UPS and FedEx bill the greater of actual weight and dimensional weight, so a bigger box can raise the billed weight by several pounds. Atomix applies a 166 divisor to UPS and FedEx shipments.

What is dunnage?

Dunnage is the void fill that stops products moving inside a package, such as paper, air pillows or foam. It adds a few cents per order and can prevent damage that costs far more.

Who pays for packaging at a 3PL?

It varies. Some 3PLs include standard boxes and mailers in the pick fee, others bill each container, and branded packaging is usually supplied by the brand or a packaging partner. Ask for packaging as its own line in the quote.

Want a quote built on your real catalog and order data? Book a free strategy session with Atomix.

Sources: Uline 10 × 13 in poly mailers; Uline 10 × 8 × 6 in box; Uline 12 × 10 × 8 in box; Atomix DIM Weight Calculator; Atomix order customizations.