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Packaging guide

Packaging Cost Per Order: A Simple Worksheet for Mailers, Tape, Labels and Void Fill (2026)

Work out your packaging cost per order with a simple worksheet covering mailers, tape, labels and void fill. Includes formulas and a worked example.

Updated Nov 9, 2026

Packaging Cost Per Order: A Simple Worksheet for Mailers, Tape, Labels and Void Fill (2026)

Knowing your packaging cost per order is the quickest way to find out whether your margins are real or only assumed. Most sellers can quote the price of a mailer, but far fewer can say what a finished parcel costs once tape, a shipping label, void fill and an allowance for waste are added. This guide gives you a simple worksheet that you fill in with your own supplier quotes. It covers a formula for every line, a worked example, practical ways to cut spend without raising damage rates, and how to turn the result into a bulk buying plan. It works in any currency and with metric or imperial units, so you can use it wherever you ship from.

Key takeaways

  • Packaging cost per order is the sum of the primary pack (mailer or box), closure (tape), label, void fill and inserts, plus a waste allowance.
  • Always convert pack prices to a cost per single use: roll or case price divided by the number of orders it covers.
  • The small lines (tape, labels, void fill) are often cheap alone, but together they can rival the mailer or box.
  • Right-sizing the pack usually saves more than negotiating a slightly lower unit price.
  • Run the worksheet at your current volume and at a higher one so you know what a bulk order does to your cost per shipment.

What packaging cost per order actually includes

Packaging cost per order is the total value of every consumable that leaves your warehouse with one customer parcel. It is not the same as the price of the mailer. A seller who budgets only for the mailer will consistently understate ecommerce packaging costs, and the gap tends to show up as a mystery in monthly accounts.

The four core cost lines

Every order uses some combination of these lines:

  • Primary pack: a poly mailer, paper mailer, bubble mailer, mailer box or corrugated shipping box.
  • Closure: packing tape, or the self-seal strip on a mailer (which is already in the mailer price).
  • Label: the shipping label stock, plus any "fragile" or branding labels you apply.
  • Protection: void fill, honeycomb paper wrap, bubble wrap or inserts that stop the product moving.

Costs that sit outside the worksheet

Carrier charges, labour, storage and returns are real costs, but they belong in a separate shipping and fulfilment budget. Keep them apart so your packaging figure stays clean and comparable between suppliers. The one exception is freight on the packaging itself: if you pay to move a pallet of mailers to your warehouse, that cost should be spread across the units it delivers. We cover that in the bulk planning section below.

Also note that a thermal printer ribbon, tape dispenser or label printer is equipment, not a per-order consumable. Track them annually rather than per parcel.

The packaging cost worksheet, step by step

The worksheet has one row per cost line and four columns. You can build it in a spreadsheet in ten minutes, and it acts as a reusable packaging cost calculator for any product you sell.

Fill in the worksheet

LineWhat to recordFormulaYour figure
Mailer or boxPrice per case or pallet, units per caseCase price ÷ units 
TapePrice per roll, roll length, tape used per parcelRoll price ÷ (roll length ÷ tape per parcel) 
LabelPrice per roll or pack, labels per rollRoll price ÷ labels per roll 
Void fillPrice per roll or kg/lb, amount used per parcelPrice per unit × amount used 
Inserts and extrasCards, tissue, stickers, desiccantPrice ÷ units 
Waste allowancePercentage of packs spoiled or mis-sizedSubtotal × waste % 
TotalPackaging cost per orderSum of all lines 

The formula behind each line

Follow these steps in order:

  1. List every pack type you ship in. Make one worksheet per pack type, because a small mailer order and a boxed order have very different costs.
  2. Take the quote, invoice or published price for each item. Use the price you will actually pay for the quantity you plan to buy, not a single-unit price.
  3. Divide by the number of uses to reach a cost per parcel.
  4. Measure real usage. Pack ten orders, time and weigh the materials, and average them.
  5. Add a waste allowance of your own choosing (many sellers start with 2 to 5 percent and adjust once they have data).
  6. Add everything up and divide by your average order value to see packaging cost as a percentage of revenue.

Keep the units consistent. If tape is sold in metres and you measure usage in inches, convert first: 1 inch is 2.54 cm, and 1 metre is about 39.4 inches.

Mailer and box cost per order

The primary pack is usually the largest single line, so get it right before worrying about pennies on tape.

Match the format to the product

Soft goods such as clothing generally travel well in a poly mailer, which is light and cheap to ship. Items that need light cushioning, such as books or small accessories, may suit bubble mailers. Brands that want a paper-based look can compare kraft paper mailers or recycled and compostable mailers. Rigid, fragile or presentation-led products usually need ecommerce mailer boxes or corrugated shipping boxes. Each format has a different cost profile, and a more expensive pack can still lower total cost if it removes the need for void fill or reduces breakage.

For deeper comparisons, see our guides on what drives poly mailer cost and mailer boxes versus shipping boxes and mailers.

Size and waste

Oversized packs cost more to buy, more to fill and often more to ship, because many carriers price on dimensional (volumetric) weight. Dimensional rules differ by carrier and country, so check your own carrier's divisor before you decide. As a rule, choose the smallest pack that closes cleanly around your product with its protection. If you have three or more products that sit between two sizes, record the cost for each in the worksheet and see whether a single middle size would cover most orders.

Also record how many packs you spoil: torn adhesive strips, misprints on custom packs, or packs that turn out too small. This is your waste allowance, and it is real money.

Tape, label and pallet film cost per shipment

These lines look trivial, which is why they are often left out. Across thousands of orders they are not.

Tape cost per box

Measure the tape on a typical packed box. A common method is an H-seal: one strip along the centre seam with an overhang down each side, plus strips along each edge seam. For a box of about 30 x 20 x 15 cm (12 x 8 x 6 in), that can easily reach 60 to 80 cm (24 to 32 in). Then divide the roll length by tape per box.

Example: a 100 m roll used at 70 cm per box covers about 142 boxes. If the roll costs 2.80 in your currency, tape costs about 0.02 per box. Poly and paper mailers with a self-seal strip need none. Our guide to buying packing tape by the case shows how to work out the real cost per box.

Shipping label cost per order

Divide the cost of a label roll or pack by the number of labels. Thermal labels in the common 4 x 6 in (100 x 150 mm) size are sold on rolls or fan-fold stacks; the count per roll varies by product, so use the figure on your supplier's specification. Add any extra labels per order, such as a fragile warning or a packing-slip pouch.

Stretch film allocated per order

If you ship pallets or consolidate cartons to a carrier, stretch film belongs in the budget. Spread the film cost across the cartons or orders on the pallet. Our guides to stretch film gauge and usage per pallet and how to wrap a pallet show how to estimate it.

Void fill cost per parcel

Void fill is the most variable line in the worksheet because it depends on how the packer works, not just on what you buy. Two packers can use very different amounts on the same order.

Weigh what you actually use

For paper void fill, weigh the paper used in ten parcels and take the average. Suppose the average is 60 g (about 2 oz) and your paper costs 2.20 per kg (about 1.00 per lb). The cost is 60 ÷ 1,000 × 2.20 = 0.13 per parcel. For rolls of bubble wrap or paper wrap, measure the length and width used. Cost per square metre is roll price ÷ roll area; for imperial, use square feet and convert (1 m² is about 10.76 ft²).

If a product needs very little void fill when you choose a better-fitting pack, that saving belongs on the worksheet as well. Sometimes a snug mailer box with no fill is cheaper per order than a larger box packed with paper.

Paper, honeycomb or bubble: comparing like for like

Compare materials by cost per parcel for a given level of protection, not by roll price. Honeycomb paper wrap expands to wrap items and can replace both bubble wrap and crumpled paper in some packs, though it has limits for heavy or sharp items. Read how honeycomb paper wrap works and where it falls short, and if you sell in markets that restrict plastic, see our guide to plastic-free void fill. Rules on plastic packaging differ widely between countries and regions, so check what applies where you sell.

Worked example: a full packaging cost per order calculation

The figures below are illustrative placeholders in a generic currency. They are not Pack Merchants prices. Replace them with your own quotes.

LineCalculationCost per order
Corrugated boxCase price 150.00 ÷ 500 boxes0.30
TapeRoll 2.80 ÷ 142 boxes0.02
Shipping labelRoll 12.00 ÷ 500 labels0.024
Void fill (paper)60 g × 2.20 per kg0.13
Insert cardPack 20.00 ÷ 1,0000.02
Subtotal0.494
Waste allowance3% of subtotal0.015
Total packaging cost per order0.509

Reading the result

In this example, the box is about 59 percent of the total and void fill about 26 percent. Tape and label together are under 9 percent. That tells you where to look first: the box size and the amount of fill. If the average order value is 40.00, packaging is roughly 1.3 percent of revenue. Many sellers also compare this figure with their gross margin per order to decide whether a premium pack is affordable.

Stress-testing the numbers

Run three versions: your current volume, a 50 percent higher volume, and a "worst case" where waste doubles. If a larger buy lowers the case price, use the new price in the worksheet and see how much it changes the total. Also test a switch in format, for example replacing the box and paper with a mailer box that needs no fill. A packaging budget for ecommerce is only useful when it shows how each choice changes the result.

How to reduce packaging costs without raising damage rates

Cutting packaging cost is pointless if breakage and replacement orders rise. The cheapest pack is the one that arrives intact the first time.

Right-size first

Group your products by dimensions and weight. Aim for as few pack sizes as possible, each fitting a range of products snugly. Fewer sizes also make bulk buying easier and storage simpler. Our guide to wholesale corrugated shipping boxes explains sizes, board grade and cost per box.

Trim the small lines

  • Use the minimum tape that keeps the box sealed; test by dropping and shaking a packed sample.
  • Set a standard void fill amount per pack size and train packers to it.
  • Print shipping labels at the smallest size your carrier accepts, if the carrier allows it.
  • Remove inserts that do not earn their cost, or combine them into one card.
  • Store rolls and packs dry and flat so adhesive and board do not degrade into waste.

Track damage alongside cost

Add two columns to the worksheet: damage rate (damaged parcels ÷ shipped) and cost per damaged order (replacement product, outbound shipping, goodwill). When you change a pack, compare total cost including damage. A change that saves 0.05 per parcel but adds one extra damaged order in 200 will usually lose money.

Turning the worksheet into a bulk order plan

Once you know the cost per order, you can calculate how many packs you need and what a bulk buy will cost.

From cost per order to quantity per product

Multiply expected orders per month by the share each pack type will carry, then add a safety buffer for the delivery period. Pack Merchants sells packaging and shipping supplies in bulk only, with a $500 minimum per product and published volume pricing. Divide $500 by your worksheet unit cost to see the smallest quantity you could order; if that quantity is more than you would use in a sensible time, consider a different size or fewer sizes. Our guide on turning a $500 per product minimum into a quantity plan walks through this.

Poly mailers, recycled and compostable mailers, bubble mailers, kraft paper mailers, corrugated shipping boxes, ecommerce mailer boxes, honeycomb paper wrap, packing tape, labels, stretch film and trash bags are all part of our range, so one worksheet can cover most of a typical packing bench.

Payment and freight in your budget

Payment is by bank transfer or USDT. USDT is the only cryptocurrency we accept. We do not offer credit or Net terms, so plan for the full amount at order time. Custom packaging and freight are quoted per order, so add the freight quote to the invoice total and divide by the number of units to get a landed cost per pack. Use that landed figure in your worksheet, not the unit price alone. Import duties, taxes and customs rules vary by country, so check what applies in your destination.

If you are still comparing suppliers, our supplier checklist for buying packaging in bulk lists what to ask before you commit.

Conclusion

Your packaging cost per order is the sum of the primary pack, tape, label, void fill, inserts and a waste allowance, each converted to a cost per single use. A simple worksheet with one row per line, real usage measurements and landed costs gives you a figure you can trust. Run it at several volumes, track damage next to cost, and use the result to plan bulk quantities that fit your minimums and your cash flow.

Frequently asked questions

How do I calculate packaging cost per order?

Add the cost per single use of every item in the parcel: mailer or box, tape, label, void fill and inserts. Convert each price by dividing the case or roll price by the number of orders it covers. Then add a waste allowance, usually a few percent, to reach the total.

What is a normal packaging cost as a percentage of revenue?

There is no universal figure, because it depends on product value, pack type and market. Many sellers track the percentage of average order value and compare it with their gross margin. Low-value, bulky products tend to have a higher percentage than small, high-value ones.

How much tape does one box use?

It depends on box size and sealing method. An H-seal on a medium box commonly uses 60 to 80 cm (24 to 32 in). Measure a few packed boxes and average them, then divide roll length by that figure to get boxes per roll.

Is void fill worth including in the calculation?

Yes. It is often the second-largest line after the primary pack, and it varies with how each packer works. Weigh or measure what is used across ten parcels and use the average.

What is the fastest way to reduce packaging costs?

Right-sizing packs is usually the biggest saving, since smaller packs use less material and may lower dimensional shipping charges. After that, standardise void fill amounts and tape use. Track damage rates so savings do not cause more replacements.

Should I include freight on packaging purchases?

Yes. Divide the freight quote by the number of units delivered and add it to the unit price to get a landed cost. This gives a truer cost per order, especially when suppliers quote freight per shipment.

Does Pack Merchants offer credit terms or sell small quantities?

No. We sell in bulk only, with a $500 minimum per product and published volume pricing. Payment is by bank transfer or USDT, and we do not offer credit or Net terms.

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