Manufacturers prepackage their goods for the following reasons:
(i) Prepackaging protects the products as they move from the manufarturers to sellers and to the final users.
(ii) Since prepackaged goods are standardised, it facilitates self-service retailing and mail order business.
(iii) Branding and labelling are possible with packaged goods.
(iv) The middlemen are relieved of the burden of having to pre-package the goods.
(v) False measuring, and weighting by unscrupulous retailers are minimized where manufacturers have prepackaged the goods.
(vi) Prepackaging makes for ease of advertising.
(vii) For corrosive products, pre-packaging protects both buyers and sellers from any harm.
(viii) Prepackaging makes for ease of handling.
(ix) There is possibility of recycling the package.
(b) Disadvantages of prepackaging are:
(i) Prepackaged goods are expensive and the cost is usually passed on to consumers.
(ii) Information on prepackaged goods may be deceitful to buyers.
(iii) End users of prepackaged goods often litter the environment with wrappers and empty cans.
(iv) Actual inspection of the goods is not possible unless the packaging is to be destroyed.
(v) Prepackaging compels buyers to rely on the information stated on the package.