{"id":16156,"date":"2025-10-30T08:24:37","date_gmt":"2025-10-30T08:24:37","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/a-tale-of-3-small-businesses-how-they-changed-packaging-to-mitigate-tariffs\/"},"modified":"2025-10-30T08:24:37","modified_gmt":"2025-10-30T08:24:37","slug":"a-tale-of-3-small-businesses-how-they-changed-packaging-to-mitigate-tariffs","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/a-tale-of-3-small-businesses-how-they-changed-packaging-to-mitigate-tariffs\/","title":{"rendered":"A tale of 3 small businesses: How they changed packaging to mitigate tariffs"},"content":{"rendered":"

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After Lisa Lane pitched her slip-on connector product, Rinseroo, <\/span><\/span><\/span><\/span><\/span><\/span>on Shark Tank<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> this January and received the show\u2019s \u201cgolden ticket,\u201d she was raring to go, ready to scale and enthused about ordering her products.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Then came heightened tariffs \u2014 in February, a 10% increase on imports from China, eventually escalating to a 145% duty rate, but soon dropping to 30%. Lane imports her finished products from China, and the hiked tariffs brought her plans to a halt.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cJust to get it off the boat was like paying for a mortgage,\u201d Lane said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

She quickly worked with her manufacturer to find ways to lower costs. One solution: a change in packaging dimensions that ended up saving 70 cents per unit for every item shipped via Amazon.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Lane\u2019s story is emblematic of a broader trend: Business owners are taking a closer look at packaging to keep costs in check. In fact, many brands and retailers have been auditing their packaging, more so than they did during the first Trump administration. This is because today\u2019s sweeping tariffs impact more countries, according to Michael Nass, executive vice president at Creative Retail Packaging, a packaging distributor.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

In addition, packaging costs have risen, with the <\/span><\/span><\/span><\/span><\/span><\/span>producer price index<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> for paperboard boxes reaching a record high in July. Altering packaging to cut costs is often easier than changing the product manufacturing itself, Nass added.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

How exactly businesses reduce their <\/span><\/span><\/span><\/span><\/span><\/span>packaging costs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>, however, depends on the company.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Shark Tank startup: Shrinking packaging dimensions<\/span><\/span><\/span><\/span><\/span><\/h3>\n

Lane\u2019s company makes slip-on hose connectors for showerheads and faucets, so consumers can wash their dog or clean the shower. The hose was packaged in a cardboard box measuring around 8x8x3.3 inches. Because Lane sells through Amazon, where costs are based partly on <\/span><\/span><\/span><\/span><\/span><\/span>dimensional weight<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>, the product\u2019s packaging was in the \u201clarge standard\u201d tier.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

As tariffs were announced, Lane reached out to her vendor to see what was possible in terms of packaging size. The manufacturer sent a sample of the box with the same material and artwork, but shrunken down by an inch on the longer sides \u2014 still enough space to accommodate the product. The change qualified the box under Amazon\u2019s \u201csmall standard\u201d category, saving shipping costs. In addition, the smaller package used less material, which further lowered costs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Lane described the process as collaborative, and she touted a strong relationship with her packaging supplier.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cA good manufacturer that wants your business is always willing to work with you,\u201d Lane said. \u201cThat’s the goal, to grow together.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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\"Two<\/div>\n<\/div>
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One of the boxes that Rinseroo is making smaller.<\/p>\n

Permission granted by Rinseroo<\/p>\n

\u00a0<\/p>\n<\/figcaption><\/figure>\n

Beauty brand: Frontloading packaging ahead of tariff hikes<\/span><\/span><\/span><\/span><\/span><\/h3>\n

Time was a blessing and a curse for Naomi Hung, co-founder of Mochidream, a skincare brand for tweens. The company manufactures and fills in the U.S. but imports packaging from overseas, including boxes from Canada.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Hung placed an order for boxes, the order got delayed, and at that same time, the <\/span><\/span><\/span><\/span><\/span><\/span>Trump administration announced<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> tariffs on Canadian imports. She asked her supplier to further delay the shipment while the business figured out what to do.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Within days, the administration paused the tariffs on Canada, and the founders called their box supplier \u201cthe second we heard the announcement,\u201d Hung said. \u201cWe said, \u2018ship everything.\u2019\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Now, Mochidream has packaging inventory to last through the year. But once this year\u2019s inventory runs out, Hung isn\u2019t sure yet what she\u2019ll do going forward. \u201cWe are kind of in wait-and-see mode in terms of what to do for the next batch order.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Negotiating with suppliers is one possibility, but Hung noted it\u2019s difficult for small businesses and emerging brands that can\u2019t always meet minimum order quantities.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Retailer: Changing packaging type and supplier<\/span><\/span><\/span><\/span><\/span><\/h3>\n

It\u2019s not just U.S.-based businesses contending with tariff changes. Katie Jones owns a U.K.-based store that sells homewares, handmade jewelry, stationery and other products.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Even though Jones wasn\u2019t directly caught in the U.S trade war like her American counterparts, the global nature of supply chains led to higher costs worldwide as materials flowed across borders, and tariffs indirectly raised costs for her suppliers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Case in point: Jones was importing kraft boxes from China to the U.K. at $1.20 each. Post-tariffs, the cost shot up to $1.75 per box \u2013 or $1,100 in packaging costs on a single delivery.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cIn the case of a small retail business such as mine, that was too much of a margin to give up,\u201d said Jones, who owns the Squirrel A Store of Buried Treasure shop in Ulverston.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n