As online retail sales continue to grow by double-digit percentages, bag manufacturers can expect to see sustained demand for courier bags, but also intensifying competition.
To continue to thrive, it is imperative that bag manufacturers differentiate themselves with something other than price.
Could tamper-evident courier bags be the answer you’re looking for?
Online shopping habits are likely to stick post pandemic
E-commerce sales hit a record high in 2020. Now, retailers are wondering if consumers will return to their old shopping habits once the COVID-19 health crisis ends.
It’s hard to say. Certain shifts in consumer habits will stay, others won’t. It all depends on consumers’ level of satisfaction with their new online experiences, demographics, and each country’s economic outlook (source).
As the share of online retail sales continues to increase, bag manufacturers can expect growing demand for courier bags.
Smaller and lighter than boxes, courier bags tend to be the preferred e-commerce packaging option because they cost less to ship.
It’s only natural for retailers to want to keep costs down, especially at a time when profit margins are eroding because in-store traffic is not what it used to be. Many retailersfind themselves under intense costpressure, and if bag manufacturers want to avoid the same situation, they have to find a way to make their courier bag stand out from the pack. Otherwise, they’re just selling a commodity product and only competing on price.
Change the conversation from price to value
You may remember this famous line from Don Draper in the TV series Mad Men: “If you don’t like what’s being said, change the conversation.”
When customers refuse to pay more, it’s usually because they don’t see the superior value of the product or the risk of using a subpar product. And yet, that risk is real.
Unhappy customers can be pretty unforgiving: A PwC study determined that about a third of customers would stop doing business with a brand they loved after just ONE bad experience, oftentimes due to a defective or flimsy product.
Why tamper-evident courier bags are the next big thing
By now, it’s become cliché to say that the Coronavirus has forced us to change how we work and live. While it’s hard to accept change at first, the key to driving business growth is to actually embrace shifting consumer preferences, not resist them.
We’ve all seen retailers take preventive measures to keep their stores clean and protect the safety of their staff and clientele. Wouldn’t it make sense to show the same level of concern for online deliveries?
Unbeknownst to consumers, it’s surprisingly easy to open a regular courier bag without leaving signs of tampering. All it takes is a hair dryer or a can of compressed air.
Now, repeat the experiment with a tamper-evident courier bag and see the difference.
Tamper-evident courier bags protect the shipper’s brand and address consumers’ hygiene and safety concernsat the same time. Soon, consumers may even start asking why retailers are still using regular courier envelopes.
What makes consumers willing to pay a price premium
There is a common misconception that consumers are always looking for the lowest price. If that were true, there would be no Starbucks, no Apple, and no Amazon Prime.
Customers are often willing to pay more for convenience, faster delivery, or better service. Would they be willing to pay more to protect their health?
Some would. But one thing is certain, online shoppers would love to be given the choice.
Take the next step
Designed specifically for bag manufacturers, our security tapes enable you to manufacture tamper-evident courier envelopesfor the same cost as regular courier envelopes.
This means you could sell more courier bags for the same price, because retailers would love to use packaging that protects their merchandise from in-transit tampering; or you could increase your profit margins by asking a slightly higher price for a better courier bag.
Request your free sampleto take advantage of this rapidly growing market without any further delay.
Graduate from the Chemical Engineering Department at McGill University, Jesse has been with the Tamperguard team since 2016 and has helped develop novel chemistries for the security of Tamperguard’s products. He also helps on articles for the Tamperguard website!