Personalized Packaging Grows; Ground Shipping Rates Increase

In a world of boring brown boxes, brands are increasingly sending products in more colorful and personalized packaging.

Consumers are showing a preference for customized, visually appealing, and brand-aligned packaging solutions. D2C brands are spearheading this trend, using unique packaging to enhance customer engagement and loyalty.

As part of this trend, e-commerce companies are embracing eco-friendly materials and personalization methods. Advances like digital printing are enabling more customizable, sustainable packaging options that resonate with environmentally conscious consumers.

In a crowded e-commerce landscape, companies are investing in bespoke packaging to stand out, strengthen brand identity, and foster repeat purchases. Expect heightened demand and opportunity to create digital printing, sustainable substrates, and packaging tech that supports customization. It’s a chance to stand out with the first physical evidence that your customer sees of your brand.

It’s not just seasonal rate increases - it’s getting more expensive to ship, according to Supply Chain Dive. 

Ground parcel shipping costs in the U.S. have surged to a record high, now 32% above 2018 levels, marking the end of an era of broad commercial shipping discounts. Fuel surcharges alone have risen 30%, even as diesel prices have stayed mostly flat, signaling that major carriers like FedEx and UPS are increasingly using these charges to boost profit margins rather than simply offset costs. 

Strategically, FedEx and UPS have pivoted from competing on price to chasing profitability, prioritizing high-yield shipments over volume. UPS has notably walked away from half of its Amazon business, acknowledging it can’t sustainably compete in the low-margin B2C segment. Both carriers have introduced higher peak season surcharges compared to last year, and discounts that once softened these increases for many shippers are rapidly disappearing.

For businesses, this shift means getting squeezed between costly legacy carriers and slower, sometimes less reliable alternatives. More in the weeds management will be necessary to ensure your shipping strategy can keep costs down. Regional shippers and USPS tiers can be a tool to optimize your shipping plan.