How to Calculate How Much Packaging You Need for Your Orders

Running out of packaging in the middle of a busy dispatch week can quickly turn into a problem. But buying far more stock than you need ties up cash and takes up storage space. A simple usage calculation can help you decide how much packaging to keep on hand.

The calculation works for items such as mailing bags, bubble wrap, tape and thermal labels. The exact amount depends on how you pack each order, so start with your actual dispatch process rather than a generic quantity.

Start with your weekly order volume

First, work out how many orders you normally dispatch in a week. If your order volume changes significantly, use an average from several recent weeks rather than basing your stock on one unusually quiet or busy period.

For example, if you dispatch 250 orders per week and normally use one mailing bag per order, your basic weekly requirement is 250 mailing bags.

Calculate packaging used per order

Next, identify how much of each packaging material is actually consumed for a typical order.

• Mailing bags: usually counted per parcel.
• Thermal labels: count how many labels you normally print per parcel.
• Packaging tape: estimate how many metres or rolls your dispatch team uses over a typical period.
• Bubble wrap: estimate the average length used for the products that require it.

This is particularly useful when one product uses much more packaging than another. A single average can hide large differences between order types.

A simple packaging stock formula

A practical starting formula is:

Required stock = expected usage during the stock period + safety stock

If you expect to use 250 mailing bags per week and want two weeks of stock available, your expected usage is 500 bags. You then add a safety margin based on how reliable your supplier lead time and order volume are.

How much safety stock should you keep?

There is no single safety-stock percentage that works for every business. Consider how quickly you can replenish the item, whether demand changes seasonally and how serious it would be to run out.

For packaging that is critical to daily dispatch, keeping additional stock can provide more breathing room. For packaging that is used less frequently or can be replaced easily, a smaller buffer may be sufficient.

Do not calculate every packaging item the same way

A box or mailing bag may be used once per order, but tape and bubble wrap are consumed differently. Thermal labels are also linked to the number of labels printed rather than simply the number of orders.

For example, an order containing several parcels may require more than one shipping label. Likewise, a fragile product may require considerably more bubble wrap than a soft, non-fragile item.

Track actual usage for a month

If you do not know how much packaging your business consumes, tracking it for four weeks can give you a much better baseline.

1. Record your opening stock.
2. Record new packaging deliveries.
3. Count your closing stock.
4. Calculate the difference.
5. Compare usage with the number and type of orders dispatched.

This gives you real consumption data instead of relying on guesswork.

Example: calculating thermal label requirements

Suppose a business dispatches 400 parcels each week and normally uses one 4 x 6 shipping label per parcel. That is approximately 400 labels per week.

If a label roll contains 500 labels, one roll covers the basic requirement for a little more than one week. Actual usage may vary if labels are reprinted or an order requires multiple parcels, so stock planning should allow for those situations.

Cloud Packaging’s 4 x 6 thermal label rolls contain 500 labels per roll.

Plan around busy periods

Average weekly usage can be misleading before seasonal peaks, promotions or other periods when order volume increases. Review your recent dispatch data and expected demand before placing a packaging order.

The aim is to have enough packaging available when orders increase without permanently carrying excessive stock during quieter periods.

Keep a simple packaging stock sheet

You do not need complicated inventory software to start. A spreadsheet can track the essentials:

When should you reorder packaging?

A useful reorder point is based on how much packaging you expect to consume while waiting for your next delivery, plus an appropriate safety buffer.

If a supplier normally takes several days to deliver and you are already close to your minimum stock level, waiting until you completely run out can leave you with no room for a sudden increase in orders.

Final checklist

• Measure your real weekly packaging usage.
• Separate packaging used once per order from materials consumed gradually.
• Allow for reprints, damaged materials and multi-parcel orders.
• Keep additional stock for items that are critical to dispatch.
• Review usage before seasonal or promotional peaks.
• Set a reorder point before stock reaches zero.