When Your Packaging Fails... The Cost of Shipping Damage

Posted: February 20, 2020

When packaging fails in transit, it typically leads to a return, which can add up to be large unanticipated financial losses. While quick fulfillment is highly important to customers, it means absolutely nothing if their order arrives damaged.

Adding Up the Costs

The cost to replace a damaged product can be up to 17x the original cost to ship.

Shipping damage affects everyone at your company. From filing a freight claim, processing the return, inspecting, storing and replacing the damaged item, being in close contact with the customer… this all adds up to direct and indirect expenses and lost time.

Brand Reputation

58% of consumers say packaging damage would deter them from buying another product.

Aside from the financial costs associated with product damage, failed packaging can also have a harmful effect on brand reputation and customer loyalty. One negative experience can negate 100 good experiences and cost you a lifetime customer.

20% of returns are made due to damaged products.

Many consumers rely on reviews of products and companies to sway their buying decisions. Even if your product is high quality, when the packaging fails, it can result in a bad public review from a disappointed customer.

Packaging Fail Review

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4 Best Practices to Reduce Shipping Damage

The major causes to shipping damage to pallet loads can often be avoided by following these guidelines:

1. Use the right primary packaging material to avoid package instability.

2. Make sure loads fit on pallet and are not built loosely or irregularly shaped.

3. Make sure trucks aren’t packed too tightly. Leaving gaps between loads can also cause transit damage.

4. Stretch wrapping effectively to avoid shifting. Set stretch wrapping standards related to applying proper load containment force, locking the load to the pallet, and eliminating dragging film tails. Always wrap to these standards for every load.

Learn more: 3 Packaging Tips for Damage Prevention

Get Your Ship Together

Rocket Industrial provides a range of packaging supplies, equipment and services to make sure you packaging is performing at its best. By utilizing our packaging test lab and the expertise of our packaging specialists, we can help you make the best packaging decisions to reduce cost and damages. Contact us to help reduce your packaging damage.