Anyone who's ever ordered something online has probably had the experience of receiving a large box mostly filled with packing materials, all to ship a small item buried in a messy pile of paper, plastic, styrofoam or shredded cardboard. And while this tactic can be merely baffling for a consumer, for an e-commerce company, it can increase unnecessary costs and carbon emissions.

Since the start of the e-commerce boom, companies have historically produced and stored as many as 15-20 different box sizes, in order to accommodate the varying shapes and sizes of the products they sell. If a certain product doesn't quite fit into one of those available boxes, a vendor will use what's known as "void fill" to fill in the empty space, using any number of different packing materials to ensure that a smaller item isn't jostled around or damaged in transit. In recent years, though, many companies have pivoted to automated technology to rightsize their packaging process, where a machine takes the exact dimensions of a shipment, and then builds a custom-sized box out of corrugated materials.

By using rightsize automation, a company can reduce its packing materials by as much as 40%, said Packsize director Gina Ylagan at a March 19 presentation at the ProMat 2025 conference in Chicago. In a survey of 80 customers who had invested in the technology, Packsize tracked an 82% reduction in void fill, 26% reduction in billable weight, and an average of 5% savings on shipping costs. Amazon and Walmart both saw results that track with that when they started using rightsizing automation, with Amazon reporting a 43% dip in average packing weight per shipment, and Walmart reducing its waste from oversized boxes by up to 26%. 

“It’s the best low-hanging fruit out there, and it’s the right thing to do as a responsibility for any company," Ylagan said, noting that rightsizing also increases the amount of items that can be placed on a single truck, and reduces the amount of trips needed, with e-commerce customers reporting a 43% reduction in total trucks used. 

Rightsizing automation can also streamline warehouse operations, she adds. With custom-sized boxes, companies can cut down on the need for excess storage space for pre-made boxes, speed up packing times, and reduce labor costs associated with manually selecting and filling oversized boxes. For consumers, the shift toward optimized packaging means a better unboxing experience, too — one without the frustration associated with pulling out a pile of wasteful materials. Rightsizing packaging also helps companies align with growing environmental expectations from shoppers.

According to a survey of more than 2,000 consumers in the U.S. from packaging equipment company Shorr, more than half of respondents said that they had consciously chosen products with sustainable packaging during the last six months. Another 90% said that they were more likely to buy from a brand that offers eco-friendly packaging options. 

"You're not only making savings, but you're adding value to your customers and you're increasing your brand," Ylagan said.

In terms of finding the right partner to make the transition to sustainable packaging, Ylagan advises companies to consider their options carefully, and keep a few priorities in mind. That includes ensuring that a partner has a service division that consistently offers help to clients, and invests in long-term research and development, which Ylagan said is an "indicator to the health of that company." A partner should also be able to spotlight previous customers who have used their services, and provide examples of how they've solved for any number of industry-specific challenges.

Ultimately, Ylagan emphasizes that right-sizing automation isn’t just about reducing costs — it’s about future-proofing a company’s packaging strategy in an era of rapid e-commerce growth, and meeting the growing consumer demand for sustainability across the e-commerce industry and beyond.

"It helps you be competitive," she said. "Rest assured that all the different business sectors, whether they're manufacturing, retail or auto parts, they're all moving down this path."