10 Common Packaging Mistakes Small Businesses Make (and How to Fix Them)

Did you know that 72% of consumers say packaging design influences their buying decisions? For small businesses, packaging is far more than a protective shell. It shapes how customers perceive your brand, impacts repeat purchases, and even determines your shipping costs.

Unfortunately, many small businesses make packaging mistakes that waste money, increase return rates, and disappoint customers. The good news: with a few smart adjustments, you can fix these issues and turn packaging into a powerful growth tool.

Here are the 10 most common packaging mistakes—and how to avoid them.

1. Using Boxes That Are Too Big

The problem: Oversized boxes waste filler material, increase dimensional shipping costs, and frustrate customers when they receive a small product in a giant box.

The fix: Right-size your packaging. Keep a variety of box sizes on hand or invest in carton-sizing tools to reduce empty space and shipping costs.

2. Ignoring Branding

The problem: Plain brown boxes may save money upfront, but they make your brand forgettable. Customers expect at least a hint of brand identity.

The fix: Add budget-friendly touches such as custom tape, branded stickers, or a simple ink stamp. Even small details can elevate your packaging and leave a lasting impression.

3. Over-Packaging

The problem: Too many layers of packaging increase costs and irritate eco-conscious buyers. Excess packaging feels wasteful and unnecessary.

The fix: Simplify. Use multifunctional packaging that protects the product while reinforcing your brand message. Customers will appreciate a thoughtful, eco-friendly approach.

4. Under-Protecting

The problem: Fragile items shipped in flimsy boxes are more likely to break, leading to returns, refunds, and poor reviews.

The fix: Test your packaging with drop and compression tests. Upgrade to lightweight but protective solutions such as air cushions, molded pulp, or honeycomb paper to ensure products arrive safely.

5. Neglecting Sustainability

The problem: Customers notice when packaging feels excessive or wasteful—and they often call it out publicly. Sustainability has become a key factor in loyalty.

The fix: Switch to recyclable mailers, compostable films, or boxes with recycled content. Highlight these changes in your marketing to make sustainability part of your brand story.

6. Forgetting the Unboxing Experience

The problem: Customers don’t just open a box—they experience it. A messy or unbranded unboxing moment reduces excitement and loyalty.

The fix: Add thoughtful, low-cost touches such as branded tissue paper, thank-you cards, or inserts. A polished unboxing experience makes small businesses feel premium.

7. Using Hard-to-Recycle Materials

The problem: Styrofoam, bubble wrap, and mixed plastics frustrate customers who want easy recycling options. Most of these materials end up in landfills.

The fix: Replace hard-to-recycle materials with paper-based or mono-material options. Corrugated inserts, paper mailers, and compostable wraps are protective and eco-friendly.

8. Poor Label Placement

The problem: Labels placed on seams, edges, or uneven surfaces can delay shipments and confuse carriers.

The fix: Always place shipping labels on the largest, flattest surface of the package. Standardize labeling across your team to avoid costly errors.

9. Not Considering Storage Space

The problem: Bulky packaging consumes warehouse or backroom space, raising storage and logistics costs.

The fix: Use flat-pack packaging that assembles only when needed. Stackable designs also help you maximize available storage.

10. Failing to Scale Packaging

The problem: Packaging systems that work for ten orders a week often collapse when volume grows to hundreds or thousands. Many small businesses wait too long to upgrade.

The fix: Audit your packaging every quarter. As you scale, invest early in entry-level automation such as carton sealers or automated mailer systems.

Comparison Snapshot: Bad vs. Good Packaging

MistakeSmart SolutionOversized boxesRight-sized corrugated packagingPlain packagingCustom tape and stickersStyrofoam fillersEco-friendly honeycomb wrapManual labelsThermal label printersBulky storageFlat-pack shipping boxes

Packaging Is a Strategy, Not Just a Box

Packaging isn’t just a cost—it’s a strategic tool. Avoiding these 10 mistakes saves money, protects your products, strengthens your brand, and turns every delivery into a customer experience worth remembering.

Next Steps:

• Subscribe to PKG Magazine for weekly insights on packaging, automation, and sustainable materials.

• Start small: even one upgrade—like switching to biodegradable mailers or adding custom tape—can improve perception and loyalty overnight.

Your packaging can either drain resources or drive growth. The choice is yours.