Right-sized packaging: AI and automation facilitate waste reduction in e-commerce

Right-sized e-commerce packaging allows customers to reduce materials, waste, and transport costs. Yet, perceptions of right-sized solutions are shrouded in narratives highlighting high costs, less protection, and slower processing operations.

Industry experts furthermore identify machinery and automation for right-sized e-commerce packaging as a “mega trend,” having served a previously niche market.

Packaging Insights speaks to Mondi, DS Smith, and Hugo Beck about the challenges and misconceptions surrounding right-sized e-commerce packaging solutions while indicating the importance of automation and AI for material reduction.

“Consumers are demanding tangible action from retailers to reduce their environmental impact. We take pride in supporting customers on their sustainability journey with innovative, e-commerce packaging and paper solutions that meet consumer expectations and help our partners to build trust, loyalty, and long-term value in the e-commerce space,” says Armand Schoonbrood, chief operating officer for e-commerce at Mondi.

According to Mondi’s annual e-commerce trend report, 90% of online shoppers favor brands that use recyclable, right-sized e-commerce packaging, highlighting that “sustainable packaging has become a standard expectation rather than a nice-to-have.”

However, right-sized e-commerce packaging is not just about reducing box size, explains Anne Curtis, business unit lead for e-commerce, Packaging Division UK, at DS Smith. While reducing material is integral to right-sized packaging creation, gaining a holistic approach to packaging, from design to automation, fuels innovation. 

Small but mighty 

DS Smith's Circular Design metrics tools can provide specific requirements for customer requests (Image credit: DS Smith).Hugo Beck, a German packaging machinery company, highlights a common misrepresentation of what consumers comprehend as right-sized e-commerce packaging and stresses the importance of efficient machinery.

“A common misconception is that properly sized packaging restricts the selection of materials or slows operations. In fact, with the correct machine technology, packaging can be extremely flexible and quick, allowing for the switching between paper and film while using less material,” says Timo Kollmann, managing director at Hugo Beck. 

DS Smith’s Curtis adds that right-sized packaging is about “optimizing the packaging including dimensions, protection, materials, and logistics. While the void fill in right-sized packaging has a negative perception within our industry, and many customers think it’s a waste of material, smaller packaging doesn’t always mean lower costs.”

She highlights that cutting too much can lead to higher damage rates, features, and customer disappointment. 

Consumer satisfaction is at the forefront of Mondi’s right-sized e-commerce. 

Schoonbrood says: “Another misconception we are faced with is that a standard box concept is more efficient, and the packaging size is irrelevant to consumers. We argue that the power of e-commerce packaging for a brand’s reputation and consumer loyalty cannot be underestimated, as we know from our consumer research that sustainable packaging boosts brand perception.”

Moreover, Schoonbrood and Curtis stress that right-sized boxes do not equal damaged goods or less protection. Schoonbrood argues that the opposite is true: “Delivered goods should not be moving around during transport, and with right-sized packaging, previously used additional filling material can be eliminated, which also pays into a better sustainability score.”

Pack smart to waste less

Right-sized e-commerce packaging aims to minimize waste and materials, helping consumers and businesses address rising environmental concerns about packaging pollution. 

Mondi's protective mailer eliminates the need for plastic bubble wrap (Image credit: Mondi). “Finding a fit-for-size e-commerce packaging is essential to reduce material waste and to optimize overall material usage. Using less material saves resources and can support a CO2 footprint reduction.” 

One example is Mondi’s Protective Mailer, a paper-based e-commerce packaging solution that eliminates the need for plastic bubble wrap by using open flute inlays instead. 

DS Smith deploys its Circular Design metrics tool, which helps customers decide and can tailor requests to specific requirements. 

“Using lightweight, recycled materials and opting for designs and innovations incorporating multi-use corrugate can all help cut down on materials and waste. Whether that be packaging weight reduction, moving to fully recyclable solutions, or supply chain optimization — many of which overlap and are complementary to our solutions,” says Curtis. 

Hugo Beck’s Kollmann adds: “Less waste from properly sized packaging cuts down on excess packaging material usage. Technologies such as Hugo Beck’s tight bag packaging reduce transportation volume and meet sustainability goals by using only the required film or paper.”

“Mega trend” moment 

Machinery and automation are paramount in optimizing e-commerce packaging that uses fewer materials and reduces waste. 

For Kollmann, automation is “crucial” to future right-sized packaging innovations. 

Kollmann expects more innovation in hybrid equipment in the future, alternating between paper and film (Image credit: Hugo Beck).“Demand for packaging that automatically adjusts to product dimensions is rising, particularly as paper-based alternatives to film become more popular. E-commerce companies need equipment that can handle a range of product sizes and sustainable materials without sacrificing speed, so flexibility is essential.”

Schoonbrood details that automation in right-sized e-commerce packaging will become a “mega trend,” moving from its current “niche” space. Yet, he stresses that this will raise new challenges and issues the industry must overcome. 

“Next to the aim of designing packaging to fit consumer needs, it [automation] will add another dimension of making it fit the needs of robots that will have to handle the packaging most efficiently. Aligning these two dimensions does not always go hand in hand, but I see it as an obstacle that can be overcome.”

Smart packaging

The level of automation seen in right-sized e-commerce packaging parallels the increase in reliance on AI and robots to fulfill packaging design and sustainability requirements. 

“To optimize packaging space in e-commerce, AI can be a supportive technology for grouping/bundling products (which are going to be packed) to ensure fit-for-size boxes are used in fulfillment,” continues Schoonbrood. 

AI can support robots to optimize supply chain logistics and reduce CO2 emissions, says Schoonbrood.  “In addition, AI and algorithms supporting robots to build iso modular pallets on outbound logistics could be used to optimize truck fillings, which also supports more sustainable logistics and hence an overall reduction of CO2 emissions.”

Curtis also advocates for incorporating new technologies like automation and AI for the continued innovation of right-sized boxes. 

“Software can play an important role here, scanning which items to include in a right-size box, but what packaging materials can be used. It can even support supply chain optimization,” she says. 

DS Smith and Hugo Beck indicate that the future of e-commerce packaging lies in adopting hybrid forms of packaging: “It’s no longer just about packing items in either a box or a bag, but something which does both,” adds Curtis.

Automation, AI, machine learning, and software developments can help streamline right-sized e-commerce packaging processes and challenge consumer and industry misconceptions.

Kollmann concludes: “We anticipate more developments in smart packaging lines that employ AI and machine learning to optimize packing in real-time, as well as hybrid equipment that can alternate between paper and film.”

“Furthermore, operators and packers often work under tight time constraints to optimize user-friendliness and accessibility. It is crucial to provide tailored solutions that offer flexible adaptations beyond basic functionality.”