E-commerce shipping has been one of the larger growth areas in packaging waste over the past two decades. The standard shipping box is corrugated cardboard (recyclable but often contaminated with plastic), packaged with plastic shipping tape, filled with plastic bubble wrap or plastic packing peanuts or air pillows, sealed with plastic adhesive shipping labels. The cardboard is the only major component that’s actually recyclable in practice; the rest tends toward landfill.
Jump to:
- What "fully compostable shipping" means
- Brands that have made meaningful moves
- The shipping box itself
- Compostable shipping tape
- Compostable void fill
- Compostable shipping labels
- A specific case study: how a brand puts it all together
- What composting at the customer end actually requires
- What's holding back broader adoption
- Operational considerations for warehouses
- Where this is heading
Several major e-commerce brands have made meaningful progress toward fully compostable shipping packaging — designing the box, the fill, the tape, the labels, and the printing to all compost together. This post walks through what these brands have used, what worked at scale, and what the procurement and operational details look like.
What “fully compostable shipping” means
A fully compostable e-commerce shipping package includes:
- Compostable corrugated cardboard box — typically uncoated kraft cardboard, FSC-certified, no glossy coatings
- Compostable shipping tape — typically water-activated paper tape rather than plastic
- Compostable void fill — paper-based crinkle fill, mushroom (mycelium) packaging, cornstarch-based packing peanuts, or compressed paper pads
- Compostable shipping labels — paper labels with compostable adhesive (rather than plastic-based labels)
- Compostable inner protective material — paper-based item-protection wrapping rather than plastic film
- Water-based ink printing for any branding or messaging
Each component has compostable alternatives that perform comparably to the conventional options. The challenge is sourcing all components consistently and at scale.
Brands that have made meaningful moves
Several e-commerce brands have built fully or substantially compostable shipping programs:
Patagonia has used compostable shipping packaging for portions of its e-commerce shipping since the early 2010s, with continued expansion of the program. Their packaging includes compostable mailers for soft goods, paper-based void fill for boxed items, and water-activated paper tape.
Allbirds has used compostable shipping for shoe-box-format packaging, with the shoes themselves arriving in compostable inner wrapping rather than plastic.
Lush Cosmetics has been one of the more aggressive adopters, with most of their direct-to-consumer e-commerce shipping using compostable packaging across multiple components.
Eileen Fisher has used compostable mailers for clothing shipping with compostable inner packaging for individual garments.
Several smaller direct-to-consumer brands in cosmetics, food, accessories, and outdoor gear categories have built compostable shipping into their brand identity from the start. Brands like Pela Case, MUD\WTR, Wild & Spaceman, and many similar smaller operations use fully compostable shipping as a differentiator.
Food and meal delivery services including Imperfect Foods, Misfits Market, and HelloFresh have made progress on shipping packaging compostability for produce and prepared meal delivery, with mixed results across different product types.
The shipping box itself
The compostable shipping box is typically corrugated cardboard with these specific characteristics:
- FSC-certified or recycled-content paper substrate — sustainability certification documents the paper sourcing
- Uncoated outer surface — no glossy or wax coatings that compromise compostability
- Water-based inks for any printing — soy or vegetable-based inks rather than petroleum-based
- Standard adhesives in the cardboard manufacture — most cardboard manufacturing uses plant-based starch adhesives that are compostable; some specialty cardboards use synthetic adhesives that aren’t
- Standard sizes — using stock-size boxes from major suppliers ensures availability and pricing
Sources include ULINE, Packlane, EcoEnclose, and several specialty compostable packaging suppliers. Pricing for compostable corrugated boxes is typically 5-15 percent more than conventional cardboard at equivalent specs, primarily because of the FSC certification and uncoated finish requirements.
Compostable shipping tape
The shipping tape is one of the easier component swaps. Water-activated paper tape (sometimes called “kraft tape” or “Boatswain’s tape”) replaces plastic tape and bonds securely to cardboard using water-activated adhesive (typically starch-based). The tape itself is compostable and bonds permanently to the cardboard, so when the box is composted, the tape goes with it.
Water-activated tape has been around for a century and is the standard for many shipping operations. The downside: it requires a tape dispenser machine that wets the tape; you can’t apply it by hand from a roll the way you can with plastic tape. The dispenser machines are widely available ($100-500 for basic models, $1000+ for higher-volume models).
Pricing is comparable to plastic tape for the actual tape; the dispenser is a one-time investment.
Compostable void fill
The void fill (the material that fills empty space inside a box to prevent the contents from shifting) has multiple compostable options:
Paper crinkle fill or shredded paper. The simplest compostable fill — kraft paper that’s been crinkled or shredded into pieces. Inexpensive, widely available, fully compostable. Works well for medium-weight items.
Compressed paper pads (Geami brand and similar). Pre-cut paper sheets that expand into a 3D protective material when stretched. More effective at protection than plain crinkle fill, premium pricing.
Mushroom packaging (mycelium-based). A more recent entrant. Mushroom packaging is grown from agricultural waste inoculated with mushroom mycelium, formed into shapes that fit specific product needs. Fully home-compostable. Pricing is higher than paper alternatives but suitable for premium product categories.
Cornstarch packing peanuts. Looks like the polystyrene packing peanuts but is made from cornstarch. Dissolves in water (literally — pour water on them and they melt). Fully compostable in any environment. Pricing comparable to polystyrene.
Compostable air pillows. Less common but available. These are filled with air rather than the void fill being a solid material; the bag itself is compostable bioplastic.
For most e-commerce applications, paper crinkle fill is the workhorse. Cornstarch packing peanuts and mushroom packaging serve premium or specialty applications.
Compostable shipping labels
The shipping label is one of the trickier components. Standard shipping labels are plastic-based with synthetic adhesive — the label itself doesn’t compost. Compostable alternatives include:
- Paper labels with compostable adhesive — the label is paper, the adhesive is starch or natural rubber based, the whole label composts with the box
- Direct printing on the box — some operations skip the label entirely and print shipping information directly on the box surface, eliminating the label component
Compostable label adoption is slower than other component swaps because the label suppliers (FedEx, UPS, USPS for prepaid labels) have their own systems and don’t always support compostable label specifications. Some custom-fulfillment operations have moved to compostable labels for their internal-printing operations; the major shipping carriers’ standard labels remain conventional.
A specific case study: how a brand puts it all together
To make this concrete, here’s a compostable shipping setup at a small-to-mid sized DTC clothing brand:
- Box: FSC-certified uncoated corrugated, 12x9x4 inch standard size for typical clothing orders, sourced from EcoEnclose at about $1.20 per box
- Tape: Water-activated paper tape, applied with a benchtop dispenser, about $0.05 of tape per box
- Inside packaging: Each clothing item wrapped in compostable tissue paper (rather than plastic poly bags), about $0.15 per item
- Void fill: Paper crinkle fill, about $0.10 per box
- Label: Paper shipping label with compostable adhesive, printed on the brand’s own label printer, about $0.05 per label
- Branding: Water-based ink printed directly on the box exterior (brand logo and “compostable packaging” message)
Total per-shipment packaging cost: about $1.55 + $0.15 per item shipped. For a typical 1-2 item order, total packaging is $1.70-2.00. Compared to a conventional plastic-tape, plastic-poly-bag, plastic-bubble-fill setup at about $0.80-1.10 per shipment, the compostable version is roughly $0.50-1.00 more expensive per shipment.
For a brand shipping 100,000 orders per year, the annual packaging cost increase from conventional to compostable is about $50,000-100,000. For a brand at this scale with average order value of $80+, the cost increase is less than 1 percent of revenue and is typically absorbed without retail price changes.
What composting at the customer end actually requires
The customer-end composting story for shipping packaging:
For customers with municipal organics that accept paper: The whole box, tape, fill, labels, and inner packaging go in the green bin together. The recipient just needs to break down the box (flatten it) and the rest goes in compost.
For customers without organics service: The cardboard goes in paper recycling. The compostable inner packaging components either go to backyard compost (if the customer has one) or to trash. The compostable advantage isn’t fully captured.
For brands marketing compostable packaging: Be honest in customer communications about what the customer needs to do. “Compostable in commercial composting facilities — please dispose with food scraps” sets the right expectation. “Returns to the earth” without infrastructure context overstates the realistic outcome.
What’s holding back broader adoption
The compostable e-commerce shipping category is growing but faces several challenges:
Cost premium. Even modest cost premiums add up across millions of shipments for major retailers like Amazon, Walmart, or Target. The mass-market e-commerce category hasn’t fully made the switch.
Supply chain. Compostable packaging suppliers are smaller than conventional packaging suppliers. Major retailers want supplier redundancy and price competition that the smaller suppliers can’t always provide.
Performance specifications. Some shipping applications (heavy electronics, fragile glassware) require packaging performance that compostable alternatives haven’t fully matched. Conventional plastic bubble wrap protects extremely well against shock; paper alternatives are improving but not always equivalent for the most demanding applications.
Customer awareness. Many customers don’t know whether their shipping packaging is compostable and don’t dispose of it as compost even when it is. Without customer-side participation, the upstream investment in compostable packaging captures less environmental benefit.
Operational considerations for warehouses
A practical detail that doesn’t always make it into the marketing story: switching to compostable shipping packaging requires changes in the warehouse operation, not just the procurement decision.
Tape application: Water-activated tape requires a dispenser machine; switching from plastic tape involves training pack-station staff on the new equipment and reorganizing workstations.
Label printing: If switching to compostable labels, the label printer firmware and stock loading may need updating. Some compostable labels are slightly thicker than conventional ones and don’t feed reliably in older printers.
Void fill handling: Paper crinkle fill takes more storage space than equivalent plastic bubble wrap. Mushroom packaging arrives in flat-pack and needs separate storage. Reorganizing the pack station to support the new materials is a non-trivial project for high-volume operations.
Pack speed: Some pack-station staff find paper crinkle fill slower to handle than plastic bubble wrap when packing fragile items. The speed difference is small (5-15 percent) but can affect labor cost at high volumes.
Quality testing: Initial drops in package-testing performance can occur as staff learn the new materials. A 3-6 month transition period with active quality monitoring catches issues before they affect customer experience.
For a brand making the compostable transition, plan for a 1-3 month transition period with operational adjustments, not just a procurement swap. The brands that succeed at the transition treat it as an operational project with cross-functional involvement (procurement, operations, customer service, marketing) rather than a procurement decision in isolation.
Where this is heading
The compostable shipping packaging category will continue to grow, with major e-commerce brands gradually adopting components and smaller direct-to-consumer brands leading the all-in compostable approach. By the late 2020s, expect:
- More major retailers offering compostable packaging as a customer option (with small premium charge)
- Wider availability of compostable shipping label support from major carriers
- Continued cost convergence between conventional and compostable packaging
- Improved customer awareness and disposal compliance
- Regulatory pressure in some regions to require compostable or recyclable packaging across all e-commerce shipping
The full transition will take a decade or more. The current state is meaningful progress, with several specific brands demonstrating the operational viability at meaningful scale.
For brands building toward compostable shipping themselves, the broader compostable bag and packaging categories cover the related items (mailers, inner packaging, organizational bags) that complete the shipping package. The end-to-end compostable shipping story is achievable today; it just requires intentional procurement decisions across all the components rather than just the box.
For B2B sourcing, see our compostable burger clamshells or compostable deli paper catalog.
Background on the underlying standards: ASTM D6400 defines the U.S. industrial-compost performance bar, EN 13432 harmonises the EU equivalent, and the FTC Green Guides govern how “compostable” can be marketed on packaging in the United States.