If an order contains either multiple different items or multiple of the same item then you are able to use the Split Packaging functionality to place each item into its own package within the order.
What you may missed is setting the number of items you wish to move to the new Package
Head of Implementation
I'd totally missed that, thankyou!
we ship some very large items and if a customer orders multiples each item has to be shipped separately. At the moment there is no way to split packaging for multiple orders of the same item. I have had to create an inventory item called "generic item" with no value which I can add to an order to split the packaging. It would be preferable to be able to split multiples of the same item to separate packages