90% of Small Businesses Get Packaging Wrong—Are You One of Them?

The Costly Mistakes Small Businesses Make With Packaging

For many small businesses, packaging is an afterthought. They either cut corners to save costs or overcompensate with flashy designs that don’t serve their brand. But what if your packaging is actually hurting your business rather than helping it?

The truth is, 90% of small businesses make packaging mistakes that drive away customers, increase costs, and damage brand perception. Are you one of them? Let’s break down the most common errors and how to fix them.


1. Prioritizing Looks Over Functionality

Many small businesses focus on making their packaging look attractive without considering how it performs in real-world conditions. If your packaging isn’t protective, user-friendly, or practical, you could be losing customers fast.

Signs You Might Be Making This Mistake:

  • Your products arrive damaged due to poor protection.
  • Customers struggle to open or reseal your packaging.
  • Your packaging doesn’t fit well with shipping standards, increasing costs.

How to Fix It:

  • Choose flexible materials that are both durable and appealing.
  • Design strategically and test your packaging in real-life conditions to ensure usability.
  • Optimize sizes and shapes to reduce shipping and storage costs.

2. Being Too Generic

Your packaging should make your brand instantly recognizable. Many small businesses use plain, uninspiring designs that blend into the background and fail to create a lasting impression.

Signs You Might Be Making This Mistake:

  • Your packaging doesn’t tell a compelling brand story.
  • It looks similar to competitors’ packaging.
  • Customers struggle to remember your brand after purchasing.

How to Fix It:

  • Incorporate distinctive colors, fonts, and design elements.
  • Use storytelling—add a tagline or brand message that resonates.
  • Focus on creating an emotional connection with your audience.

3. Ignoring Sustainability (Or Doing It Wrong)

Consumers are increasingly looking for eco-friendly packaging, but simply slapping on a “green” label won’t cut it. If your packaging isn’t truly sustainable or is inconvenient for customers, it could do more harm than good.

Signs You Might Be Making This Mistake:

  • Your packaging claims to be “eco-friendly” but lacks proof or certifications.
  • Customers complain about confusing recycling or disposal instructions.
  • Your sustainable packaging looks and feels cheap or unappealing.

How to Fix It:

  • Choose materials with credible sustainability certifications (e.g., FSC, biodegradable plastics). Choose the best type of flexible materials over rigid (glass bottles or jars) for a smaller carbon footprint.
  • Clearly communicate how to recycle or dispose of the packaging.
  • Ensure your eco-friendly choices still maintain a premium feel.

4. Overcomplicating the Design

Too much text, cluttered graphics, and excessive details can overwhelm customers. Simple, clear messaging and strong branding are key to effective packaging.

Signs You Might Be Making This Mistake:

  • Your packaging is crowded with too much information.
  • The font is difficult to read or too small.
  • Customers struggle to quickly understand what your product is about.

How to Fix It:

  • Use clean, minimal layouts that highlight essential information.
  • Make sure your brand name and product purpose are immediately clear.
  • Use whitespace strategically to improve readability.

5. Not Adapting to Your Target Audience

Your packaging should speak directly to your ideal customers. Especially in a promiscuous market, such as snacks, this is so important.

If you’re using outdated designs, the wrong colors, or failing to meet their expectations, you risk losing sales.

Signs You Might Be Making This Mistake:

  • Your packaging doesn’t reflect current industry trends or customer preferences.
  • You’ve received feedback that it feels outdated or uninspiring.
  • Your competitors have more modern, engaging designs.

How to Fix It:

  • Research your target audience’s preferences and test different designs.
  • Stay updated with packaging trends and competitor strategies.
  • Use A/B testing to see what resonates best with customers.

6. Ignoring the Unboxing Experience

In the age of social media, unboxing has become a crucial part of the customer experience. If your packaging doesn’t excite or engage customers, you’re missing a major marketing opportunity.

Signs You Might Be Making This Mistake:

  • Customers aren’t sharing their unboxing experience online.
  • Your packaging doesn’t feel special or memorable.
  • There’s no personal touch (e.g., thank-you notes, inserts, unique opening mechanisms).

How to Fix It:

  • Add small but impactful details, like tissue wrapping or a personalized message.
  • Consider how your packaging can create a moment of delight.
  • Encourage customers to share their experience on social media.

The Bottom Line: Packaging Can Make or Break Your Brand

Packaging isn’t just about wrapping your product—it’s a powerful branding and marketing tool. If your sales are stagnant or declining, it’s worth evaluating whether your packaging is helping or hurting your business.

Take a close look at your packaging choices. Are you guilty of any of these mistakes? If so, it’s time to rethink your approach and create packaging that boosts your brand’s success.

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