What is Dunnage in E-commerce Fulfilment: A Complete Guide

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In the world of e-commerce fulfilment, every detail matters when it comes to delivering goods safely and efficiently. One term you may come across, especially if you’re new to logistics, is dunnage. But what exactly is dunnage, why is it important, and how do you use it correctly? This guide breaks down everything you need to know.

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What is Dunnage?

Dunnage refers to the protective materials used to secure, cushion, or support products during shipping and storage. Its primary purpose is to prevent movement, absorb shock, and minimise the risk of damage to items inside a package.

Whether it’s a fragile ornament or a box of tech accessories, dunnage is what keeps your product safe during the often-bumpy journey from warehouse to doorstep.

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Dunnage Meaning in E-commerce Fulfilment

In logistics, dunnage isn’t just an optional extra, it’s a fundamental part of any effective ecommerce fulfilment strategy. Damaged goods lead to higher return rates, increased costs, and unhappy customers. Dunnage provides the first line of defence against that outcome.

In e-commerce fulfilment:

• It’s used inside shipping boxes, crates or pallets.
• It can take many forms, from paper and foam to air pillows or wooden inserts.
• It’s selected based on product fragility, value, and weight.

Dunnage acts as both a buffer and a stabiliser. Whether your product is travelling a short distance domestically or a long international route, it's subjected to vibrations, drops, stacking pressure, and weather conditions. Without the correct dunnage material, even the most robust product can shift, chip, or break. In addition, different categories of products require different degrees of cushioning and support, glassware needs shock absorption, electronics require static-free foam, and apparel may only need protection from moisture or folding.

Learn more about our e-commerce fulfilment services and how we handle every stage of secure product delivery, from packaging to doorstep.

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Why is Dunnage Important?

Dunnage is more than just packing filler, it’s a strategic tool that impacts your fulfilment efficiency, customer satisfaction, and environmental footprint. Here’s why dunnage is crucial for e-commerce businesses:

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1. Product Protection

Proper dunnage absorbs shocks and prevents movement, which significantly lowers the risk of product damage during transit. This is particularly vital in courier-based delivery systems where packages undergo rough handling or stacking.

2. Cost Control

Using dunnage effectively helps reduce product replacement costs, shipping insurance claims, and the logistical overhead of processing returns. Fewer damages mean better margins and reduced operational headaches.

3. Customer Satisfaction & Brand Perception

A flawless unboxing experience leads to higher customer satisfaction. Damaged items, on the other hand, create frustration and erode trust in your brand. Investing in the right dunnage shows that your business values quality and attention to detail.

4. Regulatory & Industry Standards

In industries like cosmetics, electronics, or supplements, packaging regulations may demand specific protective measures to maintain product integrity. Dunnage helps businesses meet these compliance standards and avoid penalties or reputational damage.

5. Sustainability Initiatives

Modern customers are environmentally conscious. Choosing recyclable or biodegradable dunnage supports your ESG goals and appeals to eco-aware buyers. Highlighting sustainable packaging can even serve as a conversion driver on product pages.

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Types of Dunnage

Different products require different types of protection. Here are some of the most common types of dunnage used in e-commerce shipping:

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1. Paper Dunnage

One of the most eco-friendly and cost-effective options, paper dunnage, usually kraft or recycled paper, is used for light to moderately fragile items. It’s ideal for filling voids, wrapping individual products, or layering between items to prevent abrasion. Paper dunnage is easily recyclable and widely available, making it a top choice for businesses with sustainability goals.

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2. Air Pillows

Air pillows are lightweight plastic films inflated with air to fill gaps in a package. They’re best used for lightweight, non-fragile items that just need to be held in place. While they don’t offer much cushioning, air pillows are great at preventing movement and minimising packaging weight, which can reduce shipping costs. Some air pillows are made from recyclable plastics.

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3. Foam Inserts

Foam dunnage is often custom-cut to cradle fragile, high-value, or irregularly shaped items like electronics, glassware, and instruments. It offers excellent shock absorption and keeps items immobilised. However, foam is less environmentally friendly unless you opt for biodegradable or reusable varieties.

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4. Corrugated Cardboard

Corrugated inserts, dividers, and pads are often used to create compartments inside packages. They help prevent contact between products and can support moderate weight. Cardboard dunnage is easy to source, customisable, and fully recyclable—making it ideal for businesses looking to balance protection with sustainability.

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5. Packing Peanuts

Packing peanuts are small, loose-fill packaging materials that conform to the shape of any item. Traditional peanuts are made from polystyrene, which is non-biodegradable, but modern options include compostable starch-based variants. They are best for filling irregular voids and cushioning fragile items. However, they can be messy and less desirable for unboxing experiences.

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6. Wood Blocks or Crates

Used for palletised shipments or extremely heavy and large items, wood-based dunnage, such as blocks, skids, or crates, offers unmatched structural support. It’s often found in industrial or B2B fulfilment where mechanical handling is required. Wooden dunnage is reusable and often treated for export compliance.

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How to Choose the Right Dunnage Material?

Not all dunnage is created equal. To choose the best type for your product, consider the following detailed factors:

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1. Analyse Product Fragility

Determine how delicate your items are. Glassware, electronics, or ceramics require highly cushioned dunnage such as foam inserts or packing peanuts to absorb shock. On the other hand, textiles or books may only need kraft paper to prevent movement or creasing.

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2. Consider Product Weight

Lightweight items can usually be secured with air pillows or paper dunnage. Heavier items, however, may need more robust solutions like corrugated inserts or wooden bracing to prevent crushing or shifting.

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3. Factor in Sustainability Goals

If your business has a sustainability commitment, opt for biodegradable, compostable, or reusable materials. FSC-certified cardboard, recycled paper, and compostable packing peanuts can reduce your environmental impact.

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4. Evaluate Shipping Method & Distance

For long-haul or international shipping, choose materials that offer durability and moisture resistance. International routes often involve multiple handling points, so shock-absorbent dunnage becomes essential. For local deliveries, cost-effective paper dunnage may be sufficient.

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5. Think About the Customer Experience

Your unboxing experience can influence repeat purchases and brand loyalty. Avoid materials that are messy, like polystyrene peanuts, unless they are absolutely necessary. Aim for dunnage that protects but also presents the product attractively.

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6. Compatibility with Automation

If you operate a high-throughput fulfilment centre, select dunnage that integrates well with automated packaging machines. Uniform and predictable materials, like pre-cut foam or standard-sized air pillows, can increase packing speed and reduce labour costs.

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Dunnage Best Practices in Fulfilment Centres

For businesses outsourcing to a 3PL provider or using an in-house fulfilment centre, here are key dunnage best practices:

• Train packing staff on the correct use of dunnage
• Standardise dunnage materials for specific product types
• Balance protection with cost-efficiency
• Review customer returns to refine your approach

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Dunnage and Sustainability

Eco-conscious customers now expect brands to consider the environmental impact of packaging. Dunnage can contribute to a sustainable fulfilment strategy when using:

• Recycled kraft paper
• Biodegradable packing peanuts
• Reusable foam inserts
• FSC-certified cardboard inserts

Opt for suppliers that offer sustainable dunnage options and communicate these efforts on your product pages or in unboxing experiences.

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Common Mistakes to Avoid with Dunnage

Avoid these frequent missteps:

• Using too little dunnage, resulting in shifting items
• Overpacking with non-recyclable plastics
• Not tailoring dunnage to item size or shape
• Forgetting to test packaging configurations before scale

Mistakes can lead to broken items, negative reviews, and increased returns—all of which hurt your bottom line.

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How to Reduce Dunnage Costs?

While dunnage is crucial for protecting your products, it’s also a cost that needs to be managed effectively. Here are some strategies to help you optimise your dunnage usage and reduce costs:

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1. Don’t Compromise Protection Over Cost

It’s important to remember that inadequate protection can be far more costly than investing in proper dunnage. Statistics show that replacing a damaged product can cost up to 17 times the original shipping cost. Always prioritise adequate protection for your products.

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2. Consider Dunnage Weight

Dunnage adds weight to your packages, which can increase shipping costs, especially for lightweight products. When calculating the cost-effectiveness of different dunnage materials, factor in how they will affect your overall shipping expenses.

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3. Be Mindful of Size

Oversized packaging not only wastes dunnage but can also significantly increase your shipping costs. Implement these strategies to optimise your packaging:

• Keep at least three different sized packages in stock (small, medium, and large) to accommodate various product sizes.
• Use packaging that’s appropriately sized for your products to minimise void space and reduce the need for excess dunnage.
• Consider custom packaging solutions for frequently shipped items or product bundles.

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4. Optimise Your Dunnage Mix

Don’t rely on a one-size-fits-all approach to dunnage. Instead:

• Use a mix of dunnage types to balance cost, protection, and sustainability.
• Regularly review and adjust your dunnage strategy based on damage rates and customer feedback.
• Consider seasonal changes in shipping conditions when planning your dunnage needs.

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5. Invest in Packaging Technology

While there may be upfront costs, investing in packaging technology can lead to long-term savings:

• On-demand packaging machines can create custom-sized boxes, reducing void space and dunnage needs.
• Air pillow machines allow you to create cushioning material as needed, reducing storage requirements.
• Packaging design software can help optimise your box sizes and dunnage placement.

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6. Bulk Purchasing and Inventory Management

Smart purchasing and inventory strategies can help reduce your dunnage costs:

• Buy dunnage materials in bulk to take advantage of volume discounts.
• Implement inventory management systems to track dunnage usage and prevent overstocking or stockouts.
• Consider partnering with suppliers who offer just-in-time delivery to minimise storage costs.

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7. Consider an All-Inclusive E-commerce Fulfilment Service

If managing dunnage in-house is too costly or inefficient, working with a third-party logistics (3PL) provider can streamline the process. Fulfilment providers often have pre-established dunnage strategies tailored to different product types and can pass along savings from bulk purchasing.

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Closing Thoughts

Dunnage may seem like a minor detail, but its role in e-commerce fulfilment is major. Whether you’re a brand owner managing your own warehouse or working with a third-party logistics provider, understanding dunnage meaning and usage helps you:

• Protect goods in transit
• Reduce shipping losses
• Build customer trust
  
  

With the right dunnage packaging strategy, you’ll not only improve delivery outcomes but also position your brand for sustainable, scalable growth.

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Ready to Improve Your Fulfil ment Strategy?

If you're looking to enhance your packaging process or optimise your e-commerce fulfilment setup, we’re here to help.

Fill out our contact form or reach out directly:

+44 208 2830 200
info@airboxfulfilment.com

Let’s work together to protect your products and your reputation, one shipment at a time.

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