How to Price Packaging Costs Into Your Product Price
How to add packaging into your product price: cost per item and per order, branded unboxing, gift wrap upcharges and free shipping, with worked examples.
In this guide
Packaging is one of the easiest costs to forget. A mailer, tissue, a sticker, a thank you card and tape might add $1.50 to $3.00 per order. On a $15 product, that can be your whole profit. This guide shows how to cost packaging per item and per order, and how to build it into your price.
- Packaging cost per order = box or mailer + filler + tape + label + insert + any branding.
- Split packaging into item packaging (jar label, bag) and order packaging (mailer, tape, card).
- Add item packaging to every product. Spread order packaging across the average number of items per order.
- Charge gift wrap as an upcharge instead of giving it free.
Why packaging gets forgotten
Packaging is bought in bulk, so it doesn't feel like a cost per sale. But every order uses some of it, plus tape and printer labels.
Branded unboxing is great for reviews and repeat buyers, and it costs more. Decide what is worth it and price it in.
The steps
1. List every packaging item
Box or mailer, tissue, filler, tape, shipping label, thank you card, stickers and bags.
2. Find the cost per use
Divide each bulk price by the count. Include shipping on supplies.
3. Split item and order packaging
Item packaging goes on every product. Order packaging is shared by items in the order.
4. Add packing time
Packing an order often takes 3 to 10 minutes. Price that time.
5. Build into price or charge shipping
Add packaging and packing time into your product price, or include it in your shipping charge.
Worked example: basic, branded and gift packaging
$20 an hour for packing time, 10% overhead, 30% profit and 10% fees. This is the packaging part of the price only.
| Basic mailer order | Branded unboxing order | Gift box order | |
|---|---|---|---|
| Mailer or box | $0.45 | $1.10 | $2.25 |
| Tissue, filler and tape | $0.20 | $0.45 | $0.60 |
| Label, card and sticker | $0.15 | $0.55 | $0.70 |
| Labor at $20.00/hr | 0.05 hr = $1.00 | 0.1 hr = $2.00 | 0.15 hr = $3.00 |
| Overhead (10%) | $0.18 | $0.41 | $0.66 |
| Cost to make | $1.98 | $4.51 | $7.21 |
| Plus 30% profit | $2.57 | $5.86 | $9.37 |
| Cover 10% selling fees (divide by 0.90) | $2.86 | $6.51 | $10.41 |
| Suggested price | $3 | $7 | $11 |
The branded unboxing costs about $4.51 per order. Spread it across products, or add part of it to shipping. The gift box is best as a paid add-on at about $11.
Pricing mistakes to avoid
- Counting only the box. Tape, tissue, labels, cards and stickers can cost as much as the box.
- Giving gift wrap away free. Gift wrap takes supplies and time. Sell it as an add-on.
- Never rechecking supply prices. Mailer and box prices change. Recheck your packaging cost every few months.
- Forgetting packing time. Five minutes per order is over 8 hours for 100 orders. Price it.
Packaging pricing checklist
- Every packaging item listed with cost per use.
- Item packaging added to each product.
- Order packaging spread across items per order.
- Packing time priced.
- Gift wrap or gift boxes charged as add-ons.
- Packaging costs rechecked when suppliers change prices.
Find your packaging cost per order
Type your supplies and counts into the peach cells. The calculator shows packaging cost per order and per item.
Get the Packaging Cost Per Order CalculatorCalculators that help
- Branded unboxing: Price branded packaging. Use the Branded Packaging & Unboxing Cost Calculator – Custom Boxes, Tissue, Stickers & Payback.
- Gift wrap upcharge: Set a gift wrap price. Use the Gift Box & Gift Wrap Upcharge Calculator – Gift Wrap Fee, Profit & Attach Rate.
- Compare options: Compare packaging choices. Use the Packaging Options Comparison Calculator – Poly Mailer vs Bubble Mailer vs Box vs Gift Box.
- Free shipping: Build shipping into your price. Use the Free Shipping Price Builder – Build Shipping into Prices & Set a Free Shipping Threshold.
Common questions
Should packaging be included in product price?
Yes. Packaging is part of the cost to sell, so include it in the price or in your shipping charge.
How much does packaging cost per order?
Basic mailers often cost under $1 per order. Branded unboxing can cost $2 to $4 or more.
Should I charge for gift wrap?
Yes, as an add-on. Many shops charge $3 to $8 depending on the box and time.
How do I lower packaging costs?
Buy in bulk, use standard box sizes and keep branding simple.
Is branded packaging worth it?
It can lead to reviews and repeat buyers. Track whether it pays off.
Do I include packing time?
Yes. Packing an order takes real time.
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