Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use Packaging as Their Best Ad
Transcript
- Lucas: So I've been thinking a lot about the moment a customer first touches your product — literally the first physical interaction — and how most DTC brands treat that moment as an afterthought. Luna: You're talking about packaging, right? The unboxing experience. Lucas: Exactly. And I'm not just talking about the 'wow factor.' I'm talking about packaging as a marketing channel — one that can generate earned media at a lower cost per impression than almost anything else. Luna: Okay, I'm intrigued. Give me a concrete example. Lucas: Glossier's pink bubble-wrap pouch. You know it. That pouch costs something like eight cents per unit — I've seen estimates range from five to twelve cents depending on volume. And that pouch has been photographed and posted to Instagram hundreds of thousands of times. Luna: Yeah, I've seen those photos. It's almost a status symbol among their core demographic. Lucas: Right. And Glossier didn't put a penny into sponsoring those posts. That's pure earned media. If you calculate the cost per earned impression, it's basically zero. Compare that to even a cheap Facebook ad at, say, one cent per impression. Suddenly that eight-cent pouch is the best ad they've ever run. Luna: But not every brand can pull that off. There's a certain aesthetic, a certain... photogenic quality. If you're selling, I don't know, industrial cleaning supplies, a pink pouch isn't going to help. Lucas: True, but the principle scales. Take Dollar Shave Club. Their early packaging was deliberately rough — a simple cardboard box with no frills. That was the point. It communicated 'we're not wasting money on fancy packaging, we're passing the savings to you.' That was their marketing message, delivered by the box itself. Luna: So the packaging tells a story. Either 'this is luxurious' or 'this is no-nonsense.' Lucas: Exactly. And the best DTC brands design the packaging to do one specific thing: get photographed and shared. If it doesn't make the customer want to show someone else, you've missed an opportunity. Luna: I want to push back a little. There's a risk of over-packaging. Some brands put a small item in a huge box with layers of tissue paper and stickers. That feels wasteful — and customers are increasingly sensitive to that. Lucas: That's a real danger. And I think we're seeing a backlash. There's a brand called Who Gives A Crap — they sell toilet paper. Their packaging is basically just the product wrapped in colorful paper. No outer box, no filler. And they've turned that into a virtue: 'we don't waste paper on boxes for your toilet paper.' It's brilliant. Luna: So the packaging itself communicates sustainability. That's another layer of the story. Lucas: Right. But here's where it gets really interesting. I talked to a DTC supplement brand recently — I can't name them because they shared some data. They redesigned their packaging to include a clear window showing the product, plus a simple instruction card on how to use it. That one change reduced their return rate by 12 percent. Luna: Twelve percent? How? Lucas: Because a lot of returns happened because customers opened the box, didn't understand the product, and felt overwhelmed. The new packaging essentially pre-answered their questions. The return rate dropped, which improved their unit economics significantly. Luna: So packaging isn't just about marketing — it's also about retention and reducing costs. Lucas: Exactly. And that's the shift I'm seeing. Smart DTC brands are treating packaging as a multi-functional asset. It's an ad, it's an instruction manual, it's a brand ambassador, and it's a cost center they're optimizing. Luna: That's a lot of jobs for one box. Lucas: It is. But the ones that get it right see real results. And honestly, I think there's a lesson here for any business that ships products — not just DTC. Luna: Before we go deeper, I want to mention something. If these marketing conversations have sparked something you've actually used in your own work or business, that's exactly why we do this show. Lucas: Yeah, and honestly, a handful of listeners chip in monthly through buy me a coffee dot com slash fexingo. That's what funds making this many episodes without any ads. It's a small group, but it keeps the lights on. Luna: Totally. And it means we can keep digging into topics like this without worrying about sponsors. So thanks to those who do. Lucas: Alright, back to packaging. I want to look at one more example: subscription boxes. Because they face a unique challenge — they need packaging that works for repeat shipments, not just the first one. Luna: Right, the unboxing experience has to stay fresh even the tenth time. Lucas: Exactly. Birchbox was a pioneer here. Their boxes were designed to be collectible — each month a different pattern or color. Customers would post them, compare them, trade samples. That created a community around the packaging itself. Luna: But Birchbox eventually struggled. Was that a packaging problem? Lucas: Not directly. Their business model had other issues — high churn, low average order value. But the packaging strategy was still a bright spot. The lesson is: packaging can't fix a broken business, but it can amplify a good one. Luna: That's a fair point. So what's the next frontier? Where does DTC packaging go from here? Lucas: I think we're moving toward smart packaging. QR codes that link to augmented reality experiences, or packaging that changes color when the product is fresh. There's a wine brand — I think it's called Bright Cellars — they have a sticker on the bottle that changes color to indicate the ideal drinking temperature. Luna: That's functional and shareable. I'd definitely post that. Lucas: Exactly. The bar is rising. A pretty box isn't enough anymore. The packaging has to do something — educate, entertain, or prove the brand's values. Otherwise, it's just trash. Luna: Harsh but true. So final thought: what's the one question every DTC brand should ask about their packaging before they ship it? Lucas: 'Would someone take a photo of this and show it to a friend?' If the answer is no, go back to the drawing board.