How to Calculate Packaging Cost Per Order in 2026

In terms of eCommerce companies, packaging is an expense that will keep coming back and is directly responsible for the cost of filling every single order. Packaging cost per order is the total cost incurred in terms of the box, tape, shipping label, protection items, labor involved in packaging, and the normal wastage of packaging.
The importance of finding out the cost of packaging lies in the fact that even minor costs of packaging can impact profitability when a company is handling hundreds or thousands of orders. While the corrugated box might be the largest item in terms of expenditure, other elements like bubble wrap, tapes, labels, inserts, and labor must also be taken into consideration.

What Is Packaging Cost Per Order?

Package cost per order is the total cost that is incurred while packing one order from a customer, after which it can either be sent for shipment or delivery.
Cost per package should not be limited to the cost of the shipping box alone. Any cost associated with the process of packaging the package can add to the total cost of packaging.
Formula for Cost per Order of Packaging
Cost of Packaging per Order = Material cost + Labour cost + Labels + Tape + Protection Material + Waste
Material cost
Material cost refers to the cost incurred in packaging material that will be used in packaging the goods for shipment. Examples of packaging material include a:

• Corrugated box
• Cardboard box
• Carton box
• Mailer box
• Courier bag
• Gift box

Assuming 500 corrugated boxes cost ₹6,000, the cost per box is:
₹6,000 ÷ 500 = ₹12 per box
Labor cost
Labour cost is the cost incurred due to labour while packaging an order. Assuming the cost of labour for packing is ₹150 per hour and packing 30 orders is achieved in an hour.
Tapes and Labels
Even though they’re inexpensive, shipping labels, barcode labels and packaging tapes shouldn’t be ignored.
₹60 of tape will allow sealing 30 parcels:
₹60 ÷ 30 = ₹2 per parcel
Protective Packing Materials
Depending on the item, you may need the following packing materials:

• Bubble Wraps
• Kraft Paper
• Scrapped Paper
• Corrugated Rolls
• Paper Padding
• Corrugated Inserts
• Air Pillows
• Wastage

Some packaging materials might get damaged, cut inappropriately, or not be useable at all. A business would have an opportunity to trace its actual wastages and distribute this cost among all the packed orders.

Step-by-Step Guide for Packaging Cost Calculation

It’s much easier to calculate packaging cost when all elements are considered individually.
Step 1: Calculate the Cost of the Primary Packaging
First of all, we need to determine what packaging we’ll have—the packaging box or courier bag.
Now let’s consider that you have purchased 1,000 carton boxes at ₹10,000.
₹10,000 ÷ 1,000 = ₹10 per box
Hence, the cost of primary packaging per order is ₹10, assuming one box is being used.
Step 2: Cost of Packaging Material
Compute the cost of the bubble wrap or any packaging material to be used, like Kraft paper.
For instance, 1 roll of bubble wrap is priced at ₹800 and contains 200 units.
₹800/200= ₹4 per order
For the other types of packing material available, compute the cost for each separately.
Step 3: Cost of Packaging Tape
For instance, 1 roll of packaging tape is priced at ₹75 and seals 30 units.
₹75/30= ₹2.50 per order

Step 4: Include Cost of Label

For example, 500 thermal labels cost ₹500.

₹500 ÷ 500 = ₹1 per label

If each package requires a label, then the label cost is ₹1 per order.

Step 5: Include Cost of Branding Materials

Branding materials can be:

• Thank-you card
• Thank-you sticker
• Logo sticker
• Promotional insert
• Packaging tape

For example, 100 thank-you cards cost ₹200:
₹200 ÷ 100 = ₹2 per order
Step 6: Estimate Labor Cost
It may be estimated that packing labor cost is ₹180 per hour, and there are approximately 30 packs packed in an hour.
₹180 ÷ 30 = ₹6 per pack
Step 7: Estimation of Wastage
Consider that a company incurs ₹20,000 on packing material during one month, where ₹400 of it is treated as wastage.
Thus, the percentage of wastage incurred will be
(₹400 ÷ ₹20,000) × 100 = 2%
Companies can use their own recorded wastage figure instead of taking a percentage.
Step 8: Add Up All Costs
E.g.,
Packaging Component Cost per Order

• Corrugated Box
• ₹10.00
• Bubble Wrap
• ₹4.00
• Packaging Tape
• ₹2.50
• Shipping Label
• ₹1.00
• Thank You Card
• ₹2.00
• Labor
• ₹6.00
• Wastage Cost
• ₹0.50
• Total
• ₹26.00

Here:
Cost per Order for Packaging = ₹26
The estimated cost of packaging for 1,000 orders will be
₹26 x 1,000 = ₹26,000

Packaging Cost Versus Shipping Cost

While packaging cost and shipping cost are interrelated, they represent two different costs.
The packaging cost involves the cost of materials and labor to package the order. It includes the cost of corrugated boxes, cardboard boxes, carton boxes, bubble wrap, tape, labels, and all packaging material. The shipping cost is the cost that is incurred while sending the packed items from the seller to the buyer. Some of the considerations may include:

• Weight of the packed goods
• Size of the packed goods
• Destination point
• Courier service used
• Service provided
• Rules regarding volumetric weight

The way in which packages are chosen will influence the shipping cost.
For instance, choosing a bigger box than required will result in an increased size of the box and may result in an increase in the weight that is being charged for. Additionally, big boxes will necessitate cushioning.

How to Minimize Packaging Costs

Minimizing packaging costs is different from compromising the quality of your packaging. Your aim here is to avoid excesses while still offering good protection.
1. Use the Right Size of Box
The package size you choose should not be too big for a small-sized product. Measure the product properly and leave enough room for cushioning. Using the correct size of packages minimizes unused space.
2. Compare Bulk Discounts
If you buy the same volume of orders consistently, compare bulk discounts for:

• Corrugated boxes
• Courier bags
• Bubble wrap
• Packaging tape
• Thermal labels
• Kraft paper

Buying in bulk might lower the cost per unit, but you have to take into account available storage space and cash flow.
3. Use the Same Size for Your Packages
Do not maintain too many similar sizes of packaging boxes. Find the right range of sizes that will cover most products.
4. Measure Usage of Materials
Measure the usage of bubble wrap, tape, and cushioning.
If the usage of tape by workers is different when packaging the same cardboard box, then standard guidelines for packaging can prove useful in minimizing wastage of materials.
5. Minimize Packaging Wastage
Keep corrugated boxes and other packaging materials in proper storage to minimize any wastage caused by any kind of avoidable damage.
Measure damages and any kind of wastage of materials in order for the business to know where the wastage is taking place.
6. Assess Packaging Needs Regularly
When products and suppliers change, so do the needs for packaging.

How Gurez Can Help in Packing Supplies

The business houses have a wide range of packing materials that are supplied by Gurez to the e-commerce sellers and retail shops. These business houses can go through the various types of packings, such as corrugated packs, shipping packs, packing packs, cardboard packs, carton packs, courier packs, bubble wrap, packing tapes, thermal labels, and other packing accessories. The variety of pack sizes is helpful in choosing the packing as per the dimensions of various products and not going for the same pack size for all products. It also helps the business firms that buy packaging supplies in bulk in comparing the pack quantities and options as per their requirements. The dimension of the product, its weight, fragility, protective measures, and packing conditions should always be considered while buying the packaging materials.

Conclusion

Understanding how to calculate packaging cost per order in 2026 can help eCommerce businesses gain better visibility into fulfilment expenses.
The calculation should include more than the price of a corrugated box, shipping box, packaging box, cardboard box or carton box. Tape, labeling, packing materials, branding materials, labor, and wastage may all affect the cost. Through the evaluation of costs, selecting appropriate boxes, and checking material consumption and prices from suppliers, companies will be able to make better decisions regarding packaging.Good packaging cost management does not just entail finding the most economical material.The goal is to use appropriate packaging that protects the product while keeping material and fulfilment costs under control.