Ask Lumi: Looking Back on 100 Episodes with Jesse Genet, Lumi CEO and Co-founder
Nov 20, 2019
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Jesse Genet, Lumi CEO and Co-founder, discusses the evolution of direct-to-consumer brands and the potential of empowering underserved communities. They also talk about the challenges of packaging retrieval strategy and fulfillment choices in e-commerce.
Prioritize flexibility and iteration in packaging design for small companies.
Minimize waste and carbon emissions by using curbside recyclable packaging and local economies.
Optimize packaging dimensions and materials to save on shipping costs and offer sustainable solutions.
Deep dives
Focusing on Flexibility and Iteration in Packaging Design
When starting out, it is important for small companies to prioritize flexibility and iteration in their packaging design. Customizing tape, stickers, and labels can provide a unique unboxing experience without over-investing in costly custom packaging. It also allows for adjustments based on customer behavior and order sizes.
Considering the Environmental Impact of Packaging
Packaging has a significant impact on the environment, and companies should aim to minimize waste and carbon emissions. Designing packaging that is curbside recyclable and using local economies to reduce transportation distances can be effective strategies. Companies can also explore innovative packaging solutions focused on sustainability, such as reducing water waste or using recycled materials.
Choosing Between Domestic and Overseas Packaging
The decision to source packaging domestically or overseas depends on factors such as product type, production capacity, and shipping volume. When choosing overseas production, it is crucial to consider the environmental impact of shipping bulky packaging long distances. Optimizing packaging design and utilizing local factories can help reduce transportation costs and carbon emissions.
Savings on Shipping through Intelligent Packaging Design
Intelligent packaging design, focusing on reducing weight and volume, can help save on shipping costs. By optimizing packaging dimensions and materials, companies can benefit from lower freight expenses and offer customers more sustainable packaging solutions.
Efficiency in Shipping and Packaging
Efficient shipping and packaging can significantly impact a business's success. The podcast discusses the importance of shipping efficiency in terms of space utilization in carriers' trucks and planes. It highlights an example of a company called Blue Land that ships small tablets instead of bulky bottles, resulting in more packages fitting in shipping vehicles. The podcast also emphasizes the need to consider the realities of human transit and design packaging that is convenient for carriers and does not cause discomfort or complaints.
Choosing Fulfillment Options and Handling Damages
The podcast explores how mature e-commerce companies deal with fulfillment choices and damaged packages. It emphasizes that fulfillment strategies depend on the business model and product category. Companies may invest in their own distribution centers for personalized products, while others might rely on third-party logistics (3PL) providers. It also highlights the importance of software solutions for monitoring and managing inventory levels. The discussion also touches on the acceptable level of damages, which varies based on the product's cost, the customer's lifetime value, and the option to use insulation or gel packs for sensitive items like chocolate.
“Ninety percent of the innovation that we're going to see over the next 10 years is going to come from backing into how we send products to someone in the mail in the most efficient way possible.”
