Learn about:
The difference between retail-ready and traditional packaging
Typical pack sizes for retail-ready packaging
What the best practices are for retail-ready packaging
In the world of retail, stiff competition is the name of the game. In many cases, competition is so fierce that suppliers need to find a way to distinguish their products from similar products made by different brands or suppliers before the products hit shelves. In the race to win over both retailers and consumers, even the packaging can be critical.
Retail-ready packaging makes products more eye-catching to retailers and prospective customers. The demand for this kind of packaging is increasing, and more brands across the retail marketplace are making the switch.
So, what exactly is retail-ready packaging, and what benefits does it bring?
What is Retail-Ready Packaging?
Retail-ready packaging (RRP), also known as shelf-ready packaging, is a type of secondary packaging for retail products designed to be both easily stocked and displayed as-is on shelves. With RRP, suppliers can often transport the product with no outer shipping box and minimal handling.
RRP boxes predominantly consist of corrugated cardboard and come pre-scored for easy removal of the front or top, which transforms the boxes into an on-shelf display. Due to the typical RRP design, retailers are usually able to stack the boxes on the shelves as they arrive with little-to-no intermediate handling. Additionally, RRP is generally eco-friendly and allows the storage and transport of many products at once.
Due to the standardized nature of RRP boxes, a retailer can often place replenishment orders automatically. For example, Walmart requires a maximum pack size of 1.5 warehouse packs on a shelf.
When a Walmart store sells through the contents of a single pack, a replenishment order is automatically generated for a new one. An empty RRP package can also signal to store associates to restock products, whereas an empty shelf may be overlooked or stocked incorrectly. Meanwhile, the remaining half-pack remains on the store shelves to tide over consumer demand until the replenishment order arrives.
Related Reading: What Is Vendor Managed Inventory?
Why use Retail-Ready Packaging?
Compared to traditional retail packing, RRP offers many benefits to retailers, suppliers, and customers.
Retail-Ready Packaging can:
1. Lead to cost savings
RRP enhances store cleanliness, leaves fewer open spaces on shelves, and can trigger impulse purchasing in consumers. In the case of Walmart, employees are instructed to remove RRP from trucks and display them on shelves in, ideally, just “two touches.” Limiting the amount of time employees spend interacting with boxes helps to decrease costs in both labor and time.
Cutting labor costs can significantly reduce overall costs, as they typically represent the largest expenditure for most businesses, sometimes equalling 35% or more of total revenue.
2. Push brands to think holistically
Retail-ready packaging must contain both the primary packaging design—in order to entice customers once the products are put on shelves—in addition to the characteristics of secondary packaging, such as protecting product from damage during shipment, as well as a capability for pallet optimization. As a result, suppliers must ensure the RRP is robust enough to maintain its integrity through the transition from carrier, to warehouse, and finally to shelf, encouraging a holistic approach to logistics solutions.
3. Help reduce packaging waste
If retail-ready packaging is done properly, suppliers will end up paying less for materials, as its efficient use of resources helps to minimize waste. After the product life cycle has come to an end, retailers will also end up paying less for RRP than traditionally packaged products as there’s less of a need to spend time, money, and energy disposing of unnecessary packaging materials. Additionally, RRP tends to be recyclable, helping metrics such as Walmart’s goal of exceeding its current recycling rate of 30% among consumers.
4. Enable suppliers to avoid stock-outs
RRP makes it fast and easy to monitor on-shelf availability. When a product is about to run out of stock, goods can be restocked quicker than traditional replenishment methods, helping the supplier avoid stock-outs.
As consumer packaged goods (CPG) tend to need routine replenishment due to their limited shelf life, RRP for these items can be particularly important for the supplier. RRP extends the amount of time that a product remains on the shelf, as it limits stock-outs in between replenishment cycles, leading to more brand exposure and subsequent sales.
Related Reading: How Do I View My Walmart Instocks?
5. Supplement product presentation
RRP design often ensures that products are as stackable and sturdy as possible on shelves, which also helps to maintain the aesthetic integrity of the brand. Often as a sale progresses, products on shelves will become muddled and mixed together, harming their image for consumers. Since RRP products are typically placed on shelves as boxes, like items remain together even after many consumers have interacted with them.
In addition to benefitting suppliers and retailers, RRP benefits consumers by ensuring that products are easily identifiable. RRP makes the transition from the shelf to the shopping cart simpler, resulting in greater efficiencies in the shopping experience.
Best Practices for Retail-Ready Packaging
The standards for RRPs vary between different retailers. However, Walmart’s RRP guidelines are comprehensive and can provide a good basis for understanding effective RRP practices.
In evaluating its suppliers’ RRP, Walmart uses the “5 Easies”:
Easy to identify: RRP should be clearly labeled with product details, barcodes, and branding or visuals on multiple sides of the box, to ensure quick identification by employees and shoppers.
Easy to open: RRP should have clear perforations and finger holes to enable fast and safe unboxing without the need for tools.
Easy to replenish or stock: A stable RRP box design, including a tray, allows the quick transfer of multiple products onto shelves, saving employee time and labor.
Easy to shop: RRP should have visually appealing packaging, including clear product descriptions, to enhance the products’ accessibility and encourage consumers to purchase impulsively.
Easy to dispose of or recycle: RRP should be made of recyclable materials and have a simple process for dismantling and disposal, to minimize the environmental impact.
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