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Amazon is one of the biggest, most valuable and most know company in the world. Amazon creates the trend and other companies follow it. They started their business by selling books. They came up with the Kindle device so that everyone could find everybook on a single device with single investment. And everyone wants to switch in digital, at first it seemed they are killing bof the paper industry but that's not the case. Actually Amazon is one of the main reason because of which paper industry is still alive. Lets understand how…
According to analysis of 2017, on an average Amazon ships 608 million shipments in a year and the numbers are increasing in a crazy way. Among these products/shipments 95% are packed in a cardboard box which is made out of paper. And most of them are recycled paper.
Amazon has came with many new and innovative services like one day delivery, easy return and the most important prime which is resulting in more and more people using their services.
Even they have one of the largest collection of fiction and non-fiction books on their site, also they are building their physical bookstore.
So is paper industry profitable...?
According to analysis os 2017 shipment cost Amazon 27 Million dollars. So we can say it is one of the trending industries...because there are numbers of online stores opening every now and then and there is demand for paper boxes. So if we take a look roughly 70% of paper market is under box business. And yes we say boxes are saving paper industry.
So is this the right time to enter...?
Well we won’t suggest because juice from the industry is already extracted. And now companies are shifting towards plastic packing, because of mainly two reason -
Cost - As you have seen above, these boxes cost Amazon 27 million dollars which expensive. And companies always find the way to reduce their cost of production so that they can increase their profit.
Flexibility - When we talk about flexibility, we are talking about both end consumers and sellers. Sellers are comfortable to ship the product e.g. if Mr.A orders a scarf then packing it into a box won’t be sensible in fact when you pack it into flexible plastic it would save space of whare house, easier for delivery boy, lower cost and save from liquids. And when we talk about consumer noe one likes to to receive a bos just for little thing like scarf, belive us it is place consuming.
And whether it plastic wrap or box both have their own effects on nature box are made by cutting down trees and plastic is not easy to dispose.
Conclusion - For the time being boxes business is good, but no one can predict future.
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