Consumer Buying Habits: How Does This Affect Automation Needs?

With rising technological advancements, automation is becoming a vital part of all businesses. One key factor driving this necessity is the shift in consumer buying habits. According to recent studies, there has been a significant rise in wholesale and eCommerce purchases. For example, eCommerce sales in the United States alone reached $815.4 billion in 2020, marking a 43% increase from the previous year. It is also expected that by 2026, 24% of retail buyers will make their purchases online.

This surge in online shopping comes with a demand for different packaging methods compared to traditional retail purchases. As businesses adapt to meet these changing consumer needs, there's a growing realization that automation and robotics must also evolve.

Changing Consumer Buying Habits

The US eCommerce market grew by 7.6% in 2023 strongly indicating changing consumer buying habits. This shift is having a big impact on how businesses operate, especially in terms of automation.

Let's take a closer look at why people are increasingly shopping online and what it means for companies:

Convenience and Accessibility: Online shopping platforms offer great convenience and accessibility to buyers. This is one of the biggest factors why 62% of Americans today prefer buying their necessities online.
Cost-Effective: Availability of various vouchers, cashbacks, discounts, etc., make online shopping a more cost-effective option for consumers. This has increased the possibility of millennials choosing online shopping by over 23%.
Expansive Product Range: Modern buyers today are not only keen on getting products at the best rates possible, but they also want the best products. Wholesale or eCommerce shopping platforms fulfill this need successfully by allowing consumers to access a diverse range of products suiting various preferences.

Impact on Packaging Automation

While consumer buying habits are rapidly shifting towards wholesale or eCommerce buying, here is how companies are struggling:

Fluctuating Order Volume & Frequency: Unlike traditional retail settings, wholesale and eCommerce orders show significant variability in order volume and frequency. Automation systems must possess the flexibility to adapt to these fluctuations and maintain operational efficiency.
Diverse Packaging Requirements: Wholesale and eCommerce orders demand tailored packaging solutions. Companies are expected to accommodate bulk shipments or customized packaging preferences. Therefore, automation systems must be equipped to handle diverse packaging requirements, ensuring swift and accurate order fulfillment.
Logistical Challenges: The increase in online orders presents logistical challenges for businesses, particularly concerning packaging and shipping. Automation plays a crucial role in streamlining logistical operations, from order processing to packaging and shipping, to ensure timely and accurate delivery of products to customers.

Different Packaging Needs for Wholesale/E-commerce vs. Retail

Wholesale, eCommerce, and retail – all three have varying packaging needs. Understanding these will enable businesses to customize their packaging solutions to meet customer expectations and increase retention.

Let’s take a look at the unique packaging needs for wholesale, eCommerce, and retail:

Bulk vs Individual Packaging: Wholesale orders often entail bulk packaging whereas, eCommerce orders typically require individual packaging to accommodate the diverse preferences of online shoppers.

On the other hand, retail packaging varies, but it commonly involves individualized packaging to attract customers and facilitate shelf display.

Customization Options: A study recorded that 52% of consumers are likely to return to a brand if their products are packed exceptionally. And ecommerce packaging offers a memorable unboxing experience for customers by providing opportunities for customization.

Retail packaging may also incorporate branding elements and product information to attract shoppers and communicate value. However, they lack customized packing options.

Packaging Materials and Durability: A survey recorded that as high as 67% of buyers are influenced by packaging materials used. This stresses the importance of using durable materials for packing consumer goods.

Wholesale packaging focuses on durability and cost-effectiveness, often utilizing sturdy materials for bulk shipments. eCommerce packaging requires a balance between protection, sustainability, and adequate cushioning to safeguard products during transit.

Retail packaging prioritizes aesthetics and shelf appeal, with attention to design elements, colors, and finishes that resonate with target consumers.

Packaging Efficiency and Automation: Wholesale packaging may involve automated processes for palletizing and shrink-wrapping bulk shipments. eCommerce packaging automation focuses on order fulfillment and packaging customization.

Retail packaging automation may encompass labeling, barcoding, and product presentation enhancements to optimize shelf visibility and inventory management.

Adaptability of Automation and Robotics

In response to the changing consumer buying habits, automation and robotics play a crucial role in meeting the evolving needs of businesses. By investing in flexible automation solutions, businesses can optimize their packaging processes, enhance operational efficiency, and meet the dynamic demands of modern buyers effectively.

Here's a closer look at the adaptability required in automation systems to accommodate the diverse packaging requirements:

Customizable End-Effectors and Programming: Robotics solutions must offer customizable end-effectors to handle varied packaging requirements. They must also come with flexible programming capabilities that would allow business owners to adjust packaging processes based on specific product characteristics and packaging preferences.
Efficient Handling of Diverse Packaging Requirements: Robotic solutions must demonstrate versatility in handling diverse packaging materials, sizes, and shapes. Adaptive grippers and conveyance systems optimize handling processes, ensuring seamless packaging operations across different product categories.
Scalable Software Solutions: Scalable software solutions enable businesses to customize their automation processes to their specific needs and scale operations as their business grows. Additionally, these solutions must come with user-friendly interfaces and intuitive tools that would allow operators to modify automation parameters easily.
Seamless Integration with Existing Infrastructure: Robotic automation systems must seamlessly integrate into the existing production line to ensure minimal downtime and implementation costs. These solutions will not only allow business owners to optimize their operations but also maintain continuity in their workflow.

With the increasing prevalence of wholesale and eCommerce purchasing, addressing unique packaging needs and integrating flexible automation solutions becomes crucial for businesses. Embracing these automation systems allows companies to meet evolving consumer demands effectively and maintain competitiveness in today's market.

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