Paper and Packaging Prices Increasing, Report Finds

The bottom line for retailers: you're going to be paying more to fulfill online and catalog orders. And that's not to mention all of the paper brands use in their marketing efforts, from catalogs to circulars to package inserts to direct mail pieces.

"Catalogers have been battered by increased shipping costs from UPS and FedEx," notes Jim Coogan, founder and president of Catalog Marketing Economics, a catalog circulation planning consulting firm. "Now, adding insult to injury, the cost for boxes and packaging is increasing. Catalogers need to pay close attention to their total outbound shipping costs to prevent their bottom lines from eroding this holiday season. Outbound shipping costs include their UPS and FedEx costs, including all those hidden surcharges, as well as the cost of packaging materials and boxes.