Packaging companies could face new challenges as consumers flock to online stores


Transport goods online is a rapidly evolving industry, but the logistics are not without challenges, analysts say.

Some companies, like Amazon and Costco, are grappling with a growing customer base, and others are struggling to keep pace.

One big concern is how to sell the goods, which can cost as much as $2,000 or more per item, to customers who want them.

Amazon recently added a free shipping option for a wide variety of items, but some shoppers have complained that they are being charged extra to ship their products to a location where the company does not have an Amazon Prime delivery option. 

Packing, on the other hand, is relatively new to the marketplace.

Many companies are trying to figure out how to increase the volume of their online products to make it easier for customers to buy them and ship them to their homes.

Amazon is planning to add more than 5 million packages per year to its service, said Andrew T. Collins, a managing director at the consumer packaged goods company Fulfillment by Amazon, which is owned by Amazon. 

While many online retailers have already started shipping packages to their customers, there are some who are not so keen on doing so. 

Some of those retailers are moving to the next level by moving their online inventory online, said Peter Satterfield, a partner at Sanford C. Bernstein & Co. He cited companies like Amazon, Costco and AmazonFresh as examples. 

 Amazon is also considering moving into other categories, including electronics, furniture and household items.

That could lead to more competition, which could help boost the company’s bottom line, Mr. Satterfeld said. 

For some companies, including Amazon and Walmart, the move to online deliveries may be too late, given the steep price tags. 

“We expect the trend to continue, but there will be some winners and losers,” said Scott S. Rupp, an analyst at the research firm MoffettNathanson.

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