"The True Cost of Sending a Jar of Jam: Why Postage and Packaging Can’t Be Free"

In an era of online shopping where consumers have grown accustomed to free delivery, the cost of postage and packaging remains a significant challenge for small businesses. While big corporations can absorb or subsidise shipping costs, small businesses face an uphill battle, especially when selling single, low-margin items like a jar of jam. Let’s break down the cost structure and explore why “free shipping” isn’t feasible for many.

The Cost of a Jar of Jam

We have broken down costs to bring the  small producer sells a jar of jam to a retailer for (in  producer selling a premium jar of jam. Here’s a typical cost breakdown:

• Cost Price (Production Costs): £2.40
  This includes ingredients (e.g., fruit, sugar), jar, lid, labels, and manufacturing costs like labour and energy.
• Recommended Retail Price (RRP): £4.25
  To make a sustainable profit, the producer needs to sell the jar at double the production cost. However, this margin doesn’t account for shipping, packaging, or online platform fees.

Now, consider the additional cost of sending this jar to a customer.

The Cost of Postage and Packaging

Shipping a single jar of jam involves several costs that can quickly overshadow the product’s price:

1. Packaging Materials:
• Protective wrapping (e.g., bubble wrap or paper): £0.50
• Cardboard box: £0.58
• Tape and filler: £0.05
• Total Packaging Cost: £1.13
2. Postage:
   A jar of jam typically weighs around 340 – 400g, including the packaging. Shipping costs vary based on destination, but a tracked courier service typically charges:
• Domestic Shipping: £5.00–£8.00

We are typically charged by our courier approximately £6.00

1. Additional Costs:
   There are of course additional costs which could be included in any calculation such as:
• Handling time for packing and arranging shipment.
• Payment processing fees (around 3% of the transaction).

 

The Total Cost to Ship One Jar of Jam

Let’s add it all up:

• Cost of the jar: £2.40
• Packaging: £1.13
• Courier costs: £6.00

Total: £9.53

This doesn’t account for the time and effort in processing the order or our marketing, website development & maintenance costs. Selling a single jar at its RRP of £4.25 results in a clear loss.

We understand

We totally understand why you might be reluctant when shipping costs are added to your purchase. After all

• A £.525 jar of anything will feel expensive when shipping costs nearly double the total.
• We also appreciate that there is often an assumption that many businesses inflate shipping fees to make extra profit. This is why we want to be totally transparent with our costs.
• We also understand that with free shipping widely available from businesses like Amazon and many large corporates businesses like our that have to charge for postage risk losing your custom.

The Bottom Line

The cost of postage and packaging isn’t just about the price of a stamp—it reflects the labour, materials, and logistics required to ensure a product arrives safely. For small businesses, these costs are unavoidable and often substantial. While free shipping might seem like an industry standard, it’s a luxury that only large corporations can afford to offer.

Supporting small businesses means understanding and valuing the true cost of what it takes to deliver quality, even if that means paying for shipping. Sometimes, the price of a small jar