With the surge in online purchasing comes the need for an assortment of labels and packaging. As the world continues to evolve, label converters have been busier than ever as they adjust to new forms of ordering.
“The pandemic has accelerated the growth of e-commerce like never before,” comments Angel Harvey, senior product manager - Paper/VI, Avery Dennison Label and Packaging Materials. “In fact, it’s changed buying behaviors and propelled us 4-6 years into the future. The most visible shift has occurred in online and grocery shopping. Consumers are open to convenience, as well as safety, and are starting to utilize and trust a variety of home delivery platforms.”
“I think I did all my Christmas shopping last year without leaving the house,” says Paul Teachout, business development manager – narrow web, Anderson & Vreeland. “These trends have shifted consumer habits to make online shopping a new and rewarding experience, freeing up personal time and providing full visibility of the entire transaction at your fingertips. It was only a matter of time before it presented new opportunities to our converters and their customers. These trends, along with the continued proliferation of digital printing, have created endless opportunities to supply our customers multiple SKUs of labels and do it overnight.”
Consumers are no longer relying on Amazon to simply order products, though. Other online channels are also becoming increasingly popular. Plus, food and grocery deliveries, along with at-store pickups, have become the norm, as well. These new purchasing phenomena have created alternate avenues for suppliers and converters, especially as consumer safety has become ever more paramount.
“With safety and sanitation on the forefront of everyone’s mind, we have seen the resurgence of more single-use items. This not only means more deliveries to our doors but also more packaging, labeling and waste,” notes Louis Rouhaud, global marketing director, Arjobex. “We have also noticed a surge in the demand for security substrates and tamper-evident solutions to protect both the shippers and the recipients, and maintain the integrity of their packages.”
Domino believes COVID-19 has potentially accelerated e-commerce by five years. “The trends for e-commerce show that more retailers are getting involved in online sales,” says Gary Peterson, variable data solutions manager, Domino Digital Printing North America. “It’s not just Amazon anymore. Consumer habits have changed drastically in the last 12 months with everyone quarantined at home. More people are shopping online, and retailers don’t want to miss out. Before the pandemic, 42% of all online sales were through Amazon. By mid-April 2020, that number fell to 34%. Why? It’s not that Amazon wasn’t growing; their business was booming. It was that other retailers were beginning to sell more product online, while consumers shopped less at brick-and-mortar stores, and more online. Target’s online sales were up 141%. Walmart rose 74%. Etsy was up 80%.”
According to UPM Raflatac, the e-commerce space is typically divided into four categories, which include: B2C (Business-to-Consumer), B2B (Business-to-Business), C2B (Consumer-to-Business) and C2C (Consumer-to-Consumer). Many of these will involve content downloads and other applications where no shipping of physical goods take place.
“The movement of physical goods is where e-commerce labels come in to play,” explains Philip Raley, segment manager, thermal transfer and direct thermal, Americas, UPM Raflatac. “The biggest trend has been the overall increase in online purchasing, much of it accelerated by the lockdowns and desire to reduce the amount of time spent in public during the pandemic. Direct thermal is often seen in these applications for address labels and routing labels used by the delivery services. However, behind the scenes, there are also direct thermal, thermal transfer and laser printed labels being used in places like fulfilment centers and small businesses.”
Several converters, Lightning Labels and StickerGiant, to name a couple, built business models on servicing customers in this fashion.
“We continue to see increased migration of customers utilizing our online quoting and ordering system,” states Gary Paulin, vice president of sales and client services, Lightning Labels. “Having pioneered online product label ordering in 2002, we see significant ongoing acceptance and confidence in our e-commerce platform. Mobile use is growing the fastest among those open to using the online system. Our fully capable and optimized mobile user experience is key. We reward our customers with free ground shipping for all orders placed online.
“Given the challenges associated with a global pandemic, we do see it as a contributing factor in the migration and acceptance to order online, and more specifically, using mobile devices,” adds Paulin. “This has been the trend for several years, and the momentum is now tracking at an all-time high.”
“At StickerGiant, our business model was founded on generating business with an e-commerce website,” states Jesse Freitas, director of marketing, StickerGiant. “When it came to the pandemic, this enabled us to pivot quickly. We were able to update our website and online channels for important messaging to our customers about the steps we were taking to ensure our Giants’ (employees) safety, as well as theirs. It was kind of funny at the time because the number one question we were asked was, ‘Are you open?’ Looking forward, we will continue to enhance our website to better meet our customers’ needs and expectations as the market grows.”
According to Teachout, the continued implementation of automated technologies laid the groundwork for the growth of e-commerce. With IoT technologies and cloud-based software systems, many converters had already started future-proofing their entire operations – presses included – to handle new business models. From ordering and quoting to designing and proofing, many enhanced technologies will remain part of the “new normal.”
Consumers in a wide range of markets are seeking the added convenience associated with e-commerce. Not only is this form of shopping easier, it also promotes social distancing and the avoidance of crowds. Recently, food, retail, HPC and pharmaceuticals have all seen an uptick in online purchasing.
Home deliveries from meal services, such as Uber Eats and DoorDash, have added a new wrinkle to the e-commerce market. These delivery platforms require secure packaging, with everything from bag closures with aggressive adhesives to security seals to show any evidence of tampering.
“Most of our markets have held pretty firm, with the exception of events and promotions,” says Freitas. “We have seen a lot within food and beverage, body care, and CBD products – which all continue to be a big area of what we do. As businesses across the world had to adapt, we saw emerging trends with hand sanitizer and PPE products, as well as the spike in the to-go food market for quick turnaround labels. The other noticeable change in our sales was a shift from labels being 60% of our business to 70%.”
StickerGiant has noticed significantly more activity from businesses doing online purchasing, so the search market has increased, adds Freitas.
Suppliers have already started responding to this digital trend with new e-commerce labeling solutions. Avery Dennison, for example, has launched a new e-commerce labeling portfolio. Meanwhile, UPM Raflatac has engineered materials enabling personalized experiences, optimizing logistics operations, reducing costs and minimizing waste with smaller label sizes, and meeting consumer demand with digitally integrated labels.
“The materials will perform within nearly every environment and print technology,” says Raley. “From direct thermal and thermal transfer to laser and prime and tamper-evident solutions, a variety of products are needed, which UPM Raflatac offers. As the public demand for environmentally friendly products grows stronger, end users require innovative materials, like UPM Raflatac RAFNXT+, that provide a sustainable edge.”
Polyart, a supplier of HDPE synthetic film, has the product attributes needed to address the increasing demands in e-commerce for more durability, outdoor resistance, scanning and more. “We are continuing to innovate and develop to keep ahead of the industry needs,” explains Diane Kohl, senior market development manager, Arjobex America. “With the new Amazon FBA program, there is a need for specific product categories to have a safety seal. Our Polyart TE (tamper-evident) product provides the needed safety attribute, as it delaminates when someone attempts to remove it. This leaves evidence to the consumer that the package has been tampered with. We have definitely seen an increased demand for these types of safety seals.”
Digital printing has emerged as a go-to technology for converters looking to meet the demands of their customers. This surge in e-commerce purchasing has created an immediate increase for pre-printed barcode labels in the logistics supply chains. The concept of “digital” transcends printing presses, too, as digital platforms have helped simplify the online ordering processes for many converters.
Labels featuring variable data are also seeing increased adoption with e-commerce labeling. Variable data printing (VDP) is a form of digital printing in which elements, such as text, graphics and images, may be changed from one printed piece to the next, without stopping or slowing down the printing process, using information from a database or external file.
“Domino customers have seen a 40-50% increase in demand for variable data labels and believe the trend will continue,” says Peterson.
John Abbott, president of Abbott Labels, adds, “The demand for variable data printing has increased with consecutive barcodes, numbers and QR codes. With the increases in e-commerce and logistics, especially this past year due to COVID, we see the VDP demand going up.”
Many of the markets benefiting from e-commerce are natural fits for digital printing, too. “The markets we see that are really taking advantage of the speed to market nature of e-commerce are smaller private brand owners, health and beauty items and craft breweries,” says Anderson & Vreeland’s Teachout. “This is where multiple SKUs can be designed, produced and delivered in a very short period of time.”
In order to meet the quick turnaround times associated with e-commerce labels, StickerGiant runs an all-digital shop, from printing to laser finishing. StickerGiant staffs its teams to accommodate these fast turnaround orders while promoting the utmost quality.
“We are an all-digital printer with a focus on quick turnarounds, so this is everything to the success of our business and meeting customer expectations,” says Freitas. “Digital printing gives us the ability to make color options simple, and we do not surprise customers with fees for color matching.”
The e-commerce component to digital printing for Lightning Labels has been the strength behind its brand. By utilizing the online quoting and ordering system, orders are placed and produced 24/7. Placing orders online accelerates the company’s already advanced production schedule, with most orders shipping 24-48 hours after proof approval, and nearly all within 72 hours.
“With nearly 20 years as the e-commerce custom digital label leader, we are and have always been positioned well for dynamic growth,” says Lightning Labels’ Paulin. “We continue to grow by leveraging innovation and technology advancements to ensure we continue to offer only the best quality products. We are in the people business and utilize the latest technology to deliver the best user experience. We have formed strong connections and relationships with our loyal customer base and grow aggressively with new customers every week.”
Anderson & Vreeland, meanwhile, has built its own platform that is ideally positioned to handle the influx of digital orders currently taking place. “Our Digital Store Front was well established and has done nothing but grow,” says Teachout. “As a single-source supply chain of all things flexo, we were uniquely positioned to serve our customers. This single-source virtual process streamlines the converters’ procurement process, lowers transaction costs and prevents maverick spending. It has been a win-win for all.”
Domino has optimized its portfolio to meet e-commerce demands. Label manufacturers can integrate Domino’s K600i onto their flexo presses, rewinders or finishing systems. Domino offers the K600i in a single bar or dual bar configuration in various widths, based on the customer’s need and speed requirements. “A tried-and-true digital UV inkjet printer with hundreds of installations globally, the K600i is a proven and reliable solution for VDP,” says Peterson. “Think of all the labels on Amazon and other online retailer packages you receive on your doorstep. Those are all VDP labels. During the past year, we have seen an impressive surge in orders of the Domino K600i for label manufacturers that need to add VDP to their flexo-printed labels.”
The manner in which consumers buy – and even sell – goods and services has changed, and there is a strong likelihood that these changes are here to stay. The ability to log onto one’s smartphone and purchase anything from toys to groceries – all delivered to your doorstep – will continue to affect the need for labels and packaging.
“This past year has taught us that e-commerce has completely opened up opportunities within all markets,” explains Domino’s Peterson. “Today, you can buy practically anything and everything online. Could you have imagined a year ago going grocery shopping without leaving your home, for even refrigerated and frozen foods? Today, it is a reality.
“As an example, when you buy groceries online from Whole Foods (owned by Amazon), each of the bags delivered to your doorstep has a unique 2D bar code label affixed to the package. Being able to track and trace products makes sellers and consumers more confident, enabling further sales,” adds Peterson.
Even the marketing experience has changed, adds Peterson. “Brands are provided with greater opportunity to connect with consumers who are purchasing products online because they have their email address, mailing address, etc. It’s not an anonymous shopper who enters and leaves the brick-and-mortar store anymore. Online shoppers can be further marketed to and engaged with, so retailers are creating ‘future sales’ opportunities, as well, because of e-commerce.”
One challenge facing some consumers is the transition to a virtual marketplace. “Perhaps the only challenge is helping some of our ‘technology-challenged’ customers understand how easy online ordering really is,” says Lightning Labels’ Paulin. “In most cases, once we walk them through it, they are shocked how simple it is and wish they had migrated sooner. Of course, for some, it is best for them to interact with their dedicated account manager and we are happy to assist however needed. We certainly will never force anyone to order online, and our growing team of account professionals are always available to assist.”
There are also a host of changing requirements and legislation that suppliers, converters and consumers should all be mindful of when purchasing through e-commerce channels. According to UPM Raflatac’s Raley, the recently passed Fair Food Delivery Act in California mandates that food delivered by third-party services has these types of closures applied by the restaurant prior to sending the takeout containers out the door. These will often be constructed with labeling materials, and will run from semi-gloss to active and passive security labels.
For converters, showing up in searches is another challenge not normally associated with traditional label printing. However, in an e-commerce landscape, being accessible online is pivotal to the success of a business.
“With an increase in consumer buying online, we are seeing a rise of lots of competition entering this space, which makes it more expensive for the whole industry,” notes StickerGiant’s Freitas. “The remedy is in staying current with trends and focusing as much as we can on the markets that generate the most leads and sales. The other part of it is to continue to provide an outstanding customer experience that keeps people coming back, regardless of if you are the top search result or not.”
“The challenge will be to continue thinking about solutions with the end in mind,” says Avery Dennison’s Harvey. “Ensuring that we have proper insight from our customers and value chain partners to drive innovations for the e-commerce space will be critical.”
Smart labeling, such as track-and-trace capabilities, will be key in the e-commerce space going forward. Avery Dennison, which recently acquired Smartrac, also boasts a dedicated facility for smart innovations in Miamisburg, OH, USA, where its staff cultivates products for the entire supply chain.
Arjobex envisions a similar trend. “With the increased shipment of packages, new challenges have emerged such as sourcing the right materials, ordering the right volume and accounting for those materials in the waste stream.” says Maggie Naberezny, key account manager, Arjobex America. “For the future, we see increased demand for safety, better traceability and likely more smart labels. There will also be more digitization and the need for simpler for the consumer validation of authenticity and efficient tamper-evident solutions.”
Other challenges will arise too, especially in regards to the health of supply chains. “More businesses are shipping their products directly to customers, bypassing third-party retailers, wholesalers or other middlemen,” says UPM Raflatac’s Raley. “This model is likely to see more growth as manufacturers seek to address disruptions in distribution, supply chain challenges, and new health considerations.”
Even as vaccines continue to roll out and the world trends toward a more normal way of living, many of these e-commerce trends will continue. “With people working from and staying at home, the need to purchase items online has grown dramatically,” adds Domino’s Peterson. “And as families experience the benefits of e-commerce with easy online ordering and delivery to their front door, they are adapting it to their normal routines, much of which will continue even after restrictions ease up.”
“I don’t think e-commerce presents any challenges, only opportunities,” concludes Anderson & Vreeland’s Teachout. “The current generation has more than adapted to the online and e-commerce lifestyle. We all do it in our personal lives and that has now carried over to our businesses.”
Maxcess, a provider of products and services for web handling applications, has unveiled its MyMaxcess e-commerce platform. A state-of-the-art online portal that can be accessed from a desktop, tablet or mobile phone, MyMaxcess allows customers to view their entire account history, track orders in real time, view shipment status, and order and re-order parts from its industry-leading brands of Fife, Tidland, MAGPOWR, Webex, Valley Roller, Menges Roller and Componex.
“In today’s evolving digital world, we realize that our customers have become accustomed to ordering what they want, when they want it, all at the click of a button,” says Keith Laakko, global VP of marketing. “With MyMaxcess, our customers no longer need to dial in for simple requests such as invoices, shipment status, or to order parts.”
In addition, RotoMetrics’ e-commerce tool, MyRoto, has also received major updates for rotary die and tooling customers. Customers are now able to order popular accessories online such as RD scorer blades, die foams, tint rubbers, flexible die storage bags, and more.
Those interested can sign up for an account with MyMaxcess at www.MyMaxcess.com or visit MyRoto at www.MyRoto.com.
April 14, 2021 at 01:56AM
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E-Commerce Labels - Label and Narrow Web - Label & Narrow Web Magazine
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