Why and How Packaging Matters for Small Businesses and Startups

By Robert Muehlen | BusinessBear

When you think of packaging, you probably imagine boxes, bags, or bottles that hold a product. But packaging is much more than just a container—it’s your brand’s first impression and can make or break a sale. For small businesses and startups, a well-designed packaging strategy can boost sales, increase brand recognition, and reduce shipping costs.

1. Packaging Is Your Silent Salesperson

Your product might be amazing, but if the packaging doesn’t stand out, customers might not even notice it. Think about shopping—you naturally reach for products with eye-catching, professional, and unique packaging. That’s exactly what your customers do, too.

If you’re competing with bigger brands, great packaging can be your competitive advantage. It tells your story, builds trust, and makes your product irresistible.

2. It Tells Your Brand Story

Your packaging communicates who you are and what you stand for before customers even try your product.

• Eco-friendly brand? Use recyclable or biodegradable materials.

• Luxury product? Choose premium materials and minimalist design.

• Fun and playful brand? Use bold colors and creative shapes.

Brand identity matters—and packaging is a major part of it. For example, there is a big difference if you sell homemade cookies to your neighbours and friends, probably a nice box or a plastic bag would be more than enough, but if you sell the same cookies through Amazon, your packaging would have a completely different function.

3. First Impressions Matter

Customers judge a product within seconds of seeing it. If your packaging looks cheap or unprofessional, they might assume the product inside isn’t great—even if it is. On the other hand, premium-looking packaging can make a product feel more valuable, leading to higher perceived quality and better sales.

4. It Builds Trust and Credibility

If your packaging looks polished and well-designed, people trust your brand more. This is crucial for startups competing against well-known companies.

Think about Dollar Shave Club—they entered a crowded market dominated by Gillette but won customers with smart branding and clean, simple packaging. Now, they’re a household name.

5. Packaging Can Reduce Shipping Costs

A good packaging strategy is not just about looks—it can also save you money on shipping. Poorly designed packaging can make shipping unnecessarily expensive. Here’s how to optimize packaging for eCommerce and shipping:

- Lightweight materials – Reduce shipping costs and environmental impact.

- Compact design – Smaller packaging saves space and reduces fees.

- Durable materials – Prevents product damage and reduces returns.

- Flat-pack options – Foldable packaging lowers storage and shipping expenses.

By designing smart, efficient packaging, businesses can cut costs while ensuring products arrive in perfect condition.

6. Even Big Companies Make Packaging Mistakes

I have seen many big brands make major packaging mistakes—proving that even experienced companies can get it wrong. Here are some specific case studies where packaging caused serious issues:

Amazon’s Oversized Boxes (A Costly and Wasteful Issue)

Amazon is notorious for using huge boxes for tiny products. Many customers have received USB drives, lip balm, or SD cards in massive boxes filled with excess packing materials.

• Problem: Unnecessary shipping costs and excessive waste.

• Customer Reaction: Backlash over environmental impact and wasted space.

• Solution: Amazon introduced Frustration-Free Packaging, a more eco-friendly and size-optimized packaging strategy to cut costs and reduce waste.

Cadbury’s Easter Egg Packaging Disaster (Too Much Empty Space)

Cadbury faced backlash for its Easter egg packaging, where customers noticed that the box was mostly empty space with a small egg inside.

• Problem: Customers felt deceived because the packaging was much larger than the product inside.

• Customer Reaction: Many consumers felt "tricked" and complained online.

• Lesson: Avoid excessive packaging that misleads customers—it can harm brand trust.

Kellogg’s Pringles Can Design Issue (Difficult to Recycle)

Pringles, owned by Kellogg’s, designed an iconic tube that was impossible to recycle due to its combination of metal, plastic, and cardboard layers.

• Problem: The packaging was innovative but impractical for recycling, leading to environmental criticism.

• Customer Reaction: Sustainability advocates pressured the brand to change its design.

• Solution: Pringles is now working on a fully recyclable can to meet customer demands for eco-friendly packaging.

Coors Light Plastic Ring Problem (Environmental Harm)

Coors Light used traditional plastic six-pack rings, which were widely criticized for harming marine life.

• Problem: The packaging contributed to plastic pollution.

• Customer Reaction: Environmental groups and customers demanded a change.

• Solution: Coors introduced eco-friendly cardboard packaging for its multi-packs.

Heinz Ketchup’s Dip & Squeeze Packet (Great Idea, Bad Execution)

Heinz created an innovative Dip & Squeeze ketchup packet to allow dipping or squeezing from the same container. But customers struggled to open the package, leading to complaints.

• Problem: The packaging was difficult to use, frustrating customers.

• Customer Reaction: Negative reviews about messy and hard-to-open packets.

• Lesson: Innovative packaging should still be user-friendly!

McDonald’s Strawless Lid Confusion (Unclear Design)

McDonald’s introduced a strawless lid for its drinks, aiming to reduce plastic waste. However, many customers were confused about how to use it.

• Problem: The lid design wasn’t intuitive, and many still asked for straws.

• Customer Reaction: Social media was flooded with complaints.

• Solution: Clearer instructions and design tweaks helped fix the issue.

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7. Packaging Can Boost Sales and Customer Loyalty

If your packaging is attractive, functional, and memorable, customers are more likely to buy your product again. Plus, Instagram-worthy packaging can encourage free marketing—people love sharing cool packaging on social media.

Example: Glossier’s minimalist pink pouches became an instant hit, creating a brand identity that customers recognize and love.

8. How BusinessBear Can Help You with Packaging

As you can see, packaging is a very important factor in the design of a product, it has the potential to boost your sales, but it even has the potential to break your company. At BusinessBear, we help startups and small businesses create cost-effective, customer-friendly, and brand-aligned packaging that boosts sales and saves money. We specialize in:

- Packaging design that stands out – Professional, high-quality, and market-ready.

- Material selection – Helping you choose eco-friendly, cost-efficient, or premium materials.

- Shipping optimization – Reducing size, weight, and shipping costs.

- Brand identity alignment – Ensuring packaging tells your unique story.

- Avoiding costly mistakes – Learning from big brand failures to prevent costly errors.

We take care of the whole process, from choosing materials to designing the perfect packaging, making sure your product is ready to attract customers and maximize profits.

Final Thoughts

For small businesses and startups, packaging is not just a box—it’s a marketing tool, a cost-saver, and a trust-builder.

A great packaging strategy helps you:

- Stand out from competitors

- Reduce shipping and storage costs

- Attract more customers and increase sales

- Avoid waste and unnecessary expenses

- Create a strong, recognizable brand

So next time you design packaging for your product, think beyond the box—make it smart, attractive, and practical.

💡 Need expert advice on packaging? Contact BusinessBear today to make sure your packaging looks great, tells your story, and saves you money! 

BusinessBear.ca, contact us and you will be amazed what we can do for you, and if you hurry, it might be free of cost.