The IRS says "Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold.If they are not an integral part of the manufactured product, their costs are shipping or selling expenses."
So if you have a product that you are selling and the packaging for it is what would be included if you were displaying on a store shelf, then it's part of Inventory Costs. For example a pretty velvet box for jewelry is part of inventory costs.
But if you have packaging costs for shipping your merchandise, like shipping boxes and bubble wrap, tape,etc, that is part of shipping costs.
https://www.irs.gov/publications/p334/ch06.html
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
